| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
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| #7752 | Closed | public | Multifamily | Les Sparks |
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We have been asked to give a quote for a cost certification for a HUD project where a related party will be performing the work. This is for an existing property with fire damage with costs expected to be in the $60k-$70k range. They were told they could get a cost certification rather than obtaining three bids. The property is a under a section 221(d)(4) mortgage and has 72 units. We looked at Handbook 4470.2. If an audited balance sheet and statement of operations is required, do you know if the date of those financial statements needs to be the date of completion of the project or would an audit as of 12/31/15 be sufficient? Also, if an opinion on the cost certification is required do you have an example opinion? Any information you can offer is appreciated. |
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From Les Sparks: I have never seen one of these before. BTW, I do not think the Handbook mentioned is really the correct for this situation. Most of this should be under a simplified (short-form) certification. In these cases, the form is audited and there are no other statements attached. Certainly, I believe this is appropriate given the amount of expenditure. By the way, based on the research I have done to find this requirement, leads me to believe that they are really concerned about the amount of expenditures and in most cases the concern is for the contractor’s certification. Now which form is appropriate is another question. If the client has any details, that might help. OF course the normal 92330 or 92330-A are what you might expect. I have also seen HUD-2205-A as a possibility. I have looked at every handbook discussing cost certifications (and there are about 6 of these) as well as the MAP Guide. There really isn’t anything clear without understanding where this came from. Do you have any other information? |