Managing Layered Funding Properties

Setting up and using Layered HUD and Tax Credit properties in Management Plus

© 2009 Domin-8 Enterprise Solutions LLC. All rights reserved.

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Session Topics:

1. HUD property setup.

2. Section 42 Tax Credit property setup.

3. Run a compliance certification

4. Report on your compliance property

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1. Setting up your HUD LayerNavigation Steps Information > Contracts

• Information to be completed– General Tab– Income Limits Tab– Subsidized Preferences Tab– Units Tab– Unit Contract Rent

1. HUD Layer: General Tab

General Tab– FHA number

– Maximum # of units on contract

– Section 8 type• New Construction• Section 8 Existing

– Cap Interims per HUD Guidelines• No change in household composition• Income change of less then $2,400

1. HUD Layer: Income Limits Tab

Income Limits Tab– During certification these limits are compared

to tenant income to determine qualification and rent amount.

– Income limits should be available online for your city or county.

– Limits must be entered up to 8 tenants, even if you will never have 8 tenants in a household.

– Entering last years income limits is a good idea in case you need to enter any retro certifications from past years.

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1. HUD Layer: Subsidized Preferences Tab

Subsidized Preferences Tab• General Tab

– Project name and address

• Owner Tab– Property owner information entered here

• Bank Tab– Informational only. Doesn’t get submitted

to HUD.

• Agent Tab– Company or Agency that manages the

property.

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1. HUD Layer: Subsidized Pref Tab Continued

Subsidized Preferences Tab continued:• Tracs Tab

– Here is where you setup your iMAX submission.• Note the mailbox path, especially in

network setups.• Note the TRACS username/password is

NOT the same as your WASS ID.

– Tracs unit format• Some contract administrators require

units come in a certain format. Here you can set that format and see a example of how the format will display units in Tracs files.

1. HUD Layer: Subsidized Pref Tab Continued

Subsidized Preferences Tab continued:• Notices Tab

– Listed here are the default letters ManagementPLUS uses for recertification notices.

– If you have custom letters these paths should point to your letters and not the default ones.

– Customizing the default letters or renaming customer letters to the default letter names can save the time of changing the path.

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1. HUD Layer: Unit TabUnits Tab• Here you add the units that will be part of this

contract.– Clt or Shift keys to add more then one unit

at a time

• You will only be able to add units up to the “Maximum # of units” entered on the Defaults tab. You may need to go back and edit that number if it will not allow you to add all of your units to the contract.

1. HUD Layer: Unit Contract Rent

Unit Contract Rents• Units need Contract Rents and Utility

Allowances

• Certifications cannot work without contract rents

• Setup options– Setup unit codes (Setup > Codes > Unit

Codes)– Manual entry (Information > Units)

Your HUD layer setup is now complete!

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2. Section 42 Layer

• Agency: Add Agency to Agency List– Setup > Codes > Agency– Enter Agency information – Enter Agency contact information

• Funding Requirements: Navigation StepsSetup > Codes > Agency

– Funding Requirement types:• Income• Age• Rent• Special

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2. Section 42 Layer: Funding SourceFunding Source Information > Funding Source

– Add Funding Source. Information listed on LURA.• Funding source name

• Funding source type

2. Section 42 Layer: Funding SourceGeneral Tab

– Choose Agency– Enter County/MSA– Bin Number– Bin Type

• New Construction• Acquisition/Rehab

– Comparable Unit– Minimum Lease Term– Restrictions

• Minimum Set asides• Federal Deep Rent Skewed• Pre 1990 Rule• Full Time Student Rule

– Dates and Basis are informational only– Applicable Fraction

• 100% Tax Credit Site: target not needed

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2. Section 42 Layer: Funding Source Continued Income Limits Tab

– Enter 50% AMI Income Limit– Copying from other sources– System will auto calculate the rest of the

income percentages• Verify Amounts Match Agency’s published

limits

Notices Tab– Just like HUD Contracts, ManagementPLUS uses

default letters for Tax Credit Recertification– If you created your own letters make sure the

path points to your letter

Applicable Faction History– ManagementPLUS will calculate applicable

fraction monthly during month-end– Fractions can also be manually entered

2. Section 42 LayerFunding Requirements Tab

– This is where additional non-program restrictions are added

– Choose Agency that oversees this requirement– Is the requirement mandatory?– % of households that must follow the

requirement– Choose requirements from dropdown menu

• Taken from Funding Requirements screen – Repeat until all additional requirements are

entered

Units Tab– Add units to the contract

• Classification• Utility Allowance • Gross Rent Floor

Section 42 property is now setup15

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3. Certifications

• Certifications– Tenants need a certification on file to

become a subsidized tenant • Move-in cert for a new tenant• Initial cert for a current tenant that now

receives subsidy or will now be included on a Section 42 funding source

– Qualification and Rent Screen• Determines tenant rent and household

status• Based on setup

4. Compliance Reporting

• Helpful Reports– 50059 History Report w/ Move In Income

Levels– Compliance Report– Follow-up Notices– Compliance Summary Report– Tenant Listing by contract– Household Statistics Report– Comprehensive Rent Roll

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4. Compliance Reporting

• Compliance Snapshot– This puts compliance information and

reports at the tip of your fingers.

Helpful snapshot info– Upcoming

recertification's– Pending Tracs files– Last HAP run– Compliance Alerts– Information about your

Tax credit funding requirements

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Questions?