For over 20 years, Haynie & Company has been an industry leader in providing affordable housing-related services to a wide array of clients. Our real estate professionals work with bankers, investors, and management agents to navigate Section 42 of the Internal Revenue Code covering the Low-Income Housing Tax Credit (LIHTC) program, U.S. Department of Housing and Urban Development (HUD) insured mortgage properties, and all things affordable housing. We provide extensive audit, assurance, tax, and consulting services in this sector. Our team understands the need to maintain regulatory compliance and meet deadlines while delivering proactive strategies and direction.
Multi-Family (HUD & LIHTC)
AREAS OF EXPERTISE
- Year-end financial reporting, audits, review, compilations
- HUD financial reporting and disclosures, including submissions to REAC
- Governmental financial reporting and disclosures
- HUD required cost certifications (mortgagor and contractor)
- 15-year LIHTC projections
- LIHTC cost certifications
- 10% Carryover allocation – agreed upon procedure report
- Eligible vs. non-eligible basis analysis
- Year-end income tax return preparation and compliance
- General and limited partnership income tax return preparation
- Nonprofit tax return preparation
HUD Regulatory Compliance
A HUD audit is conducted to ensure that recipients of HUD funding comply with federal regulations and use funds appropriately. Housing Authorities and participants in HUD and HFA programs in the insured multi-family housing program must prepare annual financial reports according to U.S. Department of Housing and Urban Development (HUD) guidelines. The financial reports must follow generally accepted accounting principles (GAAP). The reports must also be submitted to HUD electronically through their online Real Estate Assessment Center system (REAC) for processing within 90 days of their fiscal year-end for review and inspection from the Multi-Family Assessment Center. We assist with the submission of these required reports and forms through REAC. HUD uses these submissions to assess each HUD property’s financial strength and regulatory compliance.
Our Process & Approach
Relatively few CPAs are qualified and experienced to audit Housing Authorities, HUD programs, and LIHTC projects. HUD audits are complex, specialized, and require certain specific disclosures. LIHTC projects must maintain compliance or risk losing their tax credits. Our real estate professionals focus on HUD and LIHTC projects, including housing authorities, enabling us to excel at performing audit, tax, and consulting services effectively and affordably. Our firm is peer-reviewed every 3 years, and we remain current on new standards, regulations, and trends through continuing education and peer-to-peer relations. We impart knowledge to avoid pitfalls affecting your project’s development and continuing operations. We will help you comply with HUD and Section 42 requirements to avoid penalties, sanctions, and termination from HUD and LIHTC programs.
