The seller is required to file for the beginning of the period through the date before the deed was signed. However, you can request a waiver for the stub period and ask to have that period covered in the prior year filing. So your filing would be for 01/01/2017 – 01/09/2018.

The buyer would file for the period starting at the date the deed was signed through the fiscal year end.

From client:

The buyer in this situation is not assuming the mortgage. Mortgage will be paid off with the sale of the property (January 10, 2018). Is a REAC submission required if the mortgage is paid off subsequent to year end and if so, is the deadline still 90 days after year end?

We also have another property which the buyer assumed the mortgage. In the TPA signed approval from HUD, it states “The Seller must electronically submit their portion of the FY 2017 Audited Financial Statement from the beginning of their fiscal year to the day before the deed is signed.” Is this due 90 days after the fiscal year end?

From Kathy:

If the mortgage will be paid off and If there are no ongoing financial reporting requirements, owners who prepay their mortgage are required to submit an AFS [Annual Financial Statement] for the full fiscal year ending prior to the prepayment year. So if they prepaid in 2018, the 2017 year end is the final audit period required to submit. http://ahacpa.org/support/customer/portal/articles/2254198

Regarding the 90 day filing deadline…the deadline is still technically 90 days after the Year End. So, if the YE is 12/31, but they had a TPA on a date in June, FASSUB would still consider the deadline to be 90 days after 12/31.

*HOWEVER*, in many instances, the HUD Project Manager will ask for the submission to be done within 60 days (or whatever period they choose) of the new reporting period end date.