“Is there going to be a deadline extension?” It’s a question we are asked frequently this time of year.
We do not expect a blanket extension. We have received information from our contacts at HUD Multifamily and FHA/LEAP that there will not be an extension to the submission deadline.
In previous years REAC has been very lenient in their approval of extensions requested on an individual basis. They have returned to the pre-COVID stringent policy of only approving extensions requests when circumstances exist that are beyond the owner’s control.
The following answers frequent questions received regarding automatic HUD deadline extensions, individual extension requests, and HUD’s “grace period”.
- Extension Requests: https://ahacpa.org/faq/mf-extension-request/
- Grace Period: https://ahacpa.org/faq/multifamily-grace-period/
- Penalties for non-filing: https://ahacpa.org/faq/penalty-for-non-filing/ and https://ahacpa.org/announcements/increase-in-civil-money-penalty-amount-for-non-filers
MULTIFAMILY SUBMISSION DEADLINE GUIDANCE
This is the guidance on submission deadlines as found in Submission and Review Requirements & REMS Critical Data Fields for Annual Financial Statements
V. Overdue Financial Statements
The overdue tracking module of FASS-MF is updated nightly. If an AFS is not received by the 10th day of the month following the AFS due date, an e-mail letter is automatically sent to the owner’s Secure System coordinator on the 11th day. This message informs the owner the AFS is overdue and that a noncompliance flag has been entered into APPS. It also advises the owner if the AFS is not received within the next 30 days (grace period), HUD will refer the owner to the DEC. If the owner does not submit the AFS within the 30-day grace period, the owner is referred to the DEC and a letter is sent to the owner announcing the referral.
12/31/2022 Year End Due Dates:
- 90-Day deadline: 03/31/2023
- Late notice sent: 04/11/2023
- End of grace period: 05/11/2023
* Non-profit entities must file either an audited or unaudited submission by the 90-day deadline. If an unaudited submission is filed, and an audit is required, the audited submission is due 9 months after year end.
IF AHACPA processes your electronic submission we can assist you in your extension request(s), provided the request meets the criteria set forth by HUD.
It is extremely unlikely that an extension will be approved.
HUD’s Approval and Denial Criteria
The following criteria will be used in approving and denying extension requests:
- Approve requests when: circumstances exist that are beyond the owner’s control
- database problems beyond the control of the Project Manager and the owner prevent the owner from filing (examples include situations in which a former owner’s information was deleted from REMS, or problems with the FASS effective date or expiration date)
Deny requests when:
- the hard copy audit report was not prepared in time to meet the electronic submission deadline
- the owner failed to register as a coordinator in secure systems at least 30 days prior to the end of the fiscal year
- the owner does not have Internet access
- the owner has overdue submissions from previous years that have not been received
- the owner fails to engage an auditor at least 60 days prior to the end of the fiscal year
Click here for some samples of extension requests and their approval/denial from HUD.
The following information is needed when processing an extension request:
- Project Name and Tax ID Number
- Short explanation of why the extension is needed.
- Contact name, phone number, and email address. There are no rules on who this must be. It should be someone that is familiar with the extension being requested. I have never known HUD to actually reach out to this person.
- Type of Submission:
- NP – Less than $750K – Owner Certified
- NP – Greater than or equal to $750K – Owner Certified
- NP – Greater than or equal to $750K – Audited
- Profit Motivated – Less than $500K – owner certified
- Profit Motivated – Greater than $500K – Audited
Once our team received the information we will process the extension request. It will take HUD 24-48 hours to review and give their answer. We will send you
the response once it is posted.