We have fielded many questions regarding the government shutdown and upcoming submission process. Here is a general summary of what you may expect:
- You will not be able to reach anyone at HUD via email or phone.
- We will not know until the shutdown ends whether there will be an extension to the financial statement submission deadline. The biggest reason TO NOT expect an extension is that the REAC FASSUB is still online and accessible. They are maintained by private contractors offsite of HUD offices and are not affected by the shutdown.
- Subsidies for projects with current HAP contracts will continue. However, projects with expiring HAP contracts may experience the stoppage of HAP payments.
- There are over 1,700 HAP contracts expiring in the period from December 2018 through February 2019. If your client is on the list, you could have significant disclosures related to the ability for the project to survive 1-3 months of missing subsidy payments. The list of the expiring contracts is contained in a spreadsheet available to download on the AHACPA website.
HUD has provided specific program shutdown questions and answers. A summary of Multifamily, PHA, and FHA-Lender Questions and Answers is below. The full document can be downloaded here.
MULTIFAMILY
Q: Will HUD make payments under Section 8 contracts, rent supplement, section 236, or PRACS where there is a permanent or indefinite authority or multi-year funding?
A: For Section 236’s, interest reduction payments will continue and Rent Supplement payments from prior year funding and recaptures will continue. The Department will make payments under Section 8 and Project Rental Assistance Contracts where there is a permanent or indefinite authority or multi-year funding, or where there is budget authority available from prior year appropriations or recaptures. This includes processing Section 8 and PRAC renewals for expiring contracts and processing amendment funds for
Q: Will the Financial Assessment Sub-System (FASS) accept audited financial statements?
A: Financial statements may be submitted through FASS; however, if problems are experienced with a submission, the REAC Technical Assistance Center (TAC) will not be available to provide assistance. AHACPA Comment – We speculate that REAC will ask users to request an extension on a case by case basis. Check out our Submission Due Date Calculator for more information on deadlines, grace periods, and late notices.
Q: Will HUD entertain requests for waivers or undertake other activities as part of routine asset management?
A: For the most part, no. However, for those properties which have received designations by HUD as troubled assets through its rating of insured and assisted assets, minimal staff will be available to provide necessary oversight to ensure that actions can be taken to resolve imminent threats of claim or abatement.
PUBLIC HOUSING
Q: Will someone with the REAC Technical Assistance Center (TAC) be available to take calls, answer questions, and provide customer service?
A: No. The TAC will not be operational. Assistance will be provided when the government reopens.
Q: Will PHAS scores be released?
A: No, PHAS scores will not be released until after the government reopens.
Q: Will PHAS appeals be accepted and reviewed?
A: You should still submit your appeal on time in accordance with regulation; however appeals will not be reviewed and you will not receive a response until after the government reopens.
Q: Will I be able to utilize HUD secure systems (including VMS, PIC, and FASS) to make submissions on behalf of my organization during the shutdown period?
A: Yes. HUD secure systems will remain available; however, there will be no contractor or HUD-staff support for system-related issues,
Q: Can PHAs submit their financial information during a government shutdown?
A: Since the financial system will still be operational during the shutdown, PHAs will still be able to submit their financial information; however no one will be available to review the submission until the government reopens.
Q: Will Public Housing financial late presumptive failures (LPF) be levied for PHAs that fail to submit timely?
A: No. LPFs will not be levied for late submissions during a government shutdown; however, any PHA that is due to submit, but does not submit by the due date must submit immediately after the government reopens.
FHA LENDING
Q: Will lenders be able to submit audited financial statements to the LEAP?
A: Yes. LEAP will be available during a government shutdown. However, FHA will be unable to review or process any audited financial statements.
Q: Are lenders required to file monthly default reports to FHA?
A: Yes. FHA’s system for collecting the monthly default reporting will be available if there is a government shutdown.
Q: Can lenders submit applications for FHA approval?
A: FHA will not approve any lender applications during the government shutdown.
Q: Will borrowers receive HECM payments from HUD during a government shutdown?
A: Yes. Borrowers will receive HECM payments.
Q: Will FHA monitor lenders during the government shutdown?
A: No. FHA will not perform any post technical endorsement or Quality Assurance Reviews during a government shutdown.
Q: Will lenders be able to get password resets for FHA Connection?
A: Lenders will be able to continue to utilize the automated password reset options on FHA Connection, but resets that require FHA employee direct assistance will not be available. AHACPA Comment – this may be a cause for an extension.
Q: Will lenders be able to submit audited financial statements to the LEAP?
A: Yes. LEAP will be available during a government shutdown. However, FHA will be unable to review or process any audited financial statements.
HUD Rental Assistance Demonstration (RAD) and
Project-Based Rental Assistance (PBRA) Training
March 5th & 6th, 2019
8:30 am - 4:30 pm each day
AMA Atlanta Executive Conference Center
1170 Peachtree Street NE, 3rd Floor
Atlanta, GA
16 CPE Credit Hours
Course Fee: $600 ($550 for AHACPA Members)
Click here to register online.
Click here for a printable registration form
(use this when registering more than one person at the same time)
Speakers:
Les Sparks, President, AHACPA
Chad Porter, Audit Partner, Smith Marion & Co, LLP
ADDITIONAL INFORMATION:
- The training is NOT being held at a hotel, so there is not a room block. The conference price includes a continental breakfast, lunch, snacks, and drinks.
- The location has over 10 hotels within reasonable walking distance of the training center. A list of nearby hotels can be found here.
- Space is limited to 50 attendees and is filling up quickly.
Topics will Include:
- Contents and Requirements of RAD PBRA Contract
- Review of the PBRA contract and the most important provisions compared to Public Housing
- Reserve for replacement rules and regulations
- Calculation and usages of surplus cash/distributions
- Management Agent and Management Agreements
- Completion of Forms 9839 and 9832 and what they mean
- Various types of management fees allowed
- Paying for centrally-provided frontline services
- General compliance with the Management Agent Handbook (4381.5)
- Compliance with Financial Statement Reporting Requirements of the REAC FASSUB Multifamily System
- Differences between Multifamily and PHA systems
- Content of REAC-required FASB-based financial statements and differences between the PHA GASB-GAAP financial statements
- REAC administration and submission process
- REAC multifamily reviews compared to PHA reviews
- Scoring methodologies for multifamily programs
- HUD Oversight of the Administration of PBRA Program Through Management and Occupancy Reviews (MORs)
- Dealing with Annual Audit Requirements and the HUD Audit Guide
- General Overview of the Occupancy Guide (Handbook 4350.3) – Requirements for Administering the Subsidy Program
20th Annual Public Housing Authority (PHA) Conference
June 17th & 18th, 2019
June 17th: 8:00 am - 5:00 pm
June 18th: 8:00 am - 3:10 pm
Course Fee: $650 ($600 for AHACPA Members)
Register before May 27th for a $50 early-registration discount
The Cosmopolitan of Las Vegas
3708 Las Vegas Blvd South Las Vegas, NV 89109
Click here to register online.
Click here for a printable registration form (use this when registering more than one person at the same time)
Save the Date - More information to be announced
21st Annual Multifamily Conference
December 10th & 11th, 2019
The Cosmopolitan Las Vegas
FHA Lender Update - Las Vegas
December 9th, 2019
The Cosmopolitan Las Vegas
One-day Update Courses and Webinars to be announced
Courses will be posted on AHACPA's Training Calendar
CPE Credit Information
Objective: To learn HUD accounting, auditing, and electronic submission requirements and how to efficiently implement those requirements.
Prerequisites / Advanced Preparation: General HUD accounting or audit experience. You do not need to print any course materials prior to your arrival. All materials will be provided for you.
Instructional Method: Group-Live with interactive discussion and Group Internet Based
Length / CPE Credits: One-day Update Courses provide up to 8 hours CPE credit (4 hours governmental accounting and 4 hours governmental auditing). Two-day Conferences provide up to 16 hours CPE credit (8 hours governmental accounting and 8 hours governmental auditing).
Cancellation Policy: All cancellation requests must be received in writing (email or fax is fine). Registration fees are fully refundable provided the request is received at least three weeks prior to the course. Requests received after this date, but one week before the course will receive a refund less an administration fee of $50 for Update Courses and $75 for Conferences. Due to financial obligations incurred by AHACPA, no refunds will be issued for cancellation requests received less than a week before the course.
Substitutions: If you are unable to attend a course you may substitute another individual or change locations without penalty. The location change must be within the same calendar year. For proper CPE credit and record keeping, you must notify us in advance of any substitution or change in location.
Contact Information: For more information regarding refund, complaint, and/or program cancellation policies, please contact our office at 801-547-0809.