The Wisconsin Housing and Economic Development Authority Risk and Compliance Team completed an in depth review of its Multifamily Best Practices. Contractual obligations dictate the oversight requirements for many properties. WHEDA also utilizes a risk-based approach to monitoring properties on five key elements: Management, Market, Financial, Physical, and Regulatory. WHEDA announced several changes to their practices. The revised audit requirements are located on wheda.com.
WHEDA will not be performing a calculation on unlimited distribution developments unless there is a surplus cash note due payable to WHEDA or required remittance of surplus cash funds. WHEDA does retain the ability to discuss partnership distributions in the event the development has operating deficits or a debt coverage ratio under 1.0.
Because of the changes in the audit requirements we are adjusting the timing of two other items:
- Form 400 – Compliance Certificate- For the 2015 financial statements this should be remitted with the submission of the financial statements. In the future this form is to be completed and remitted with the capital budget.
- Surplus Real Estate Tax Escrow- WHEDA will be returning any excess surplus tax escrow in late February to the operating accounts after the real estate tax analysis is completed. If you have surplus in your escrow account you will receive a letter stating the date of deposit and the amount being refunded.
If you should have any questions please do not hesitate to contact your Portfolio Risk Officer.
