During the Construction phase, Asset Management monitors the progress of construction. We receive reports on a monthly basis to check the progress of the buildings and check the budget for the project. We also receive a quarterly questionnaire to check in with the General Partner (see Reporting Requirements below).

While monitoring the progress of the construction, Asset Management also works with the General Partner and Property Managers to prepare for the operation of the property. We check all pertinent management documents, such as:

  • Property Management Agreement
  • Management Plan
  • Model Lease
  • Tenant Selection Plan
  • Marketing Plan
  • Reasonable Accommodation
  • Support Services Agreement
  • Rent Schedule
  • Updated Budget

Approximately 90 days before the lease-up period, we will have a pre-occupancy meeting to discuss the levels of regulatory restrictions, partnership requirements, management agreements, the lease-up schedule, and other issues that may occur. Invitees to the Pre-Occupancy Meeting may include the State Housing Authority and other regulatory agencies, the general partner, property management company, and compliance consultant.

Reporting Requirements
(NNEHIF GOES GREEN! We ask that all files and reports be submitted electronically, if possible, to Asset Management.)

  • Monthly: requisitions for construction loan draws (including AIA form G702)
  • Monthly: updated Total Development Budget, with revised estimates for cost to complete
  • Periodic: schedule of values
  • All change orders and lien waivers and change order summary log
  • Relevant correspondence by architect, construction manager, consulting engineer or HFA inspector
  • Construction meeting minutes

When construction is complete, Asset Management collects information regarding the completion of construction and begins monitoring the projects operations to ensure a successful lease-up process and that regulatory requirements are met.

Asset Management receives copies of the Certificates of Occupancy for the buildings in the property, as well as certificates of substantial completion, notifications of incomplete work, escrow analysis, and other relevant reports. (See Reporting Requirements to see which reports should be sent to Asset Management.)

During lease-up, Asset Management receives monthly reports of the number of units leased, with an updated schedule of leasing. (See Reporting Requirements below.)

When the property has been fully leased, a 100% file and physical review will take place to ensure that everything is in compliance. NNEHIF requires the property management company to send a copy of all initial tenant files to us, as well as a copy of the leasing compliance certification required by the state housing authority. The quarterly questionnaire that was prepared for Asset Management during construction will continue to be updated and sent to Asset Management during the lease-up period.

Reporting Requirements
(NNEHIF GOES GREEN! We ask that all files and reports be submitted electronically, if possible, to Asset Management.)

  • Certificate of Occupancy
  • Certificate of Substantial Completion
  • Monthly as of the end of each month: Initial Qualified Occupancy Summary
  • Within 90 days: Cost Certification and Credit Basis Report
  • Within 90 days: Form 8609 from the state HFA
  • At 100% lease-up: leasing compliance certification required by state, detailing all initial qualifying tenants: Compliance Certification-Tenant Information Format (ME) or Qualified Basis Tracking Sheet (NH)
  • At 100% lease-up: copies of all initial qualifying tenant files

Once a property has begun leasing, NNEHIF Asset Management receives operational data on each property on an ongoing, quarterly basis. The reporting requirements show which financial and leasing reports are required. Quarterly reports are due 30 days after the end of each quarter.

Please complete the Operations Quarterly Questionnaire and send it along with the other operational data to Asset Management.

Reporting Requirements
(NNEHIF GOES GREEN! We ask that all files and reports be submitted electronically, if possible, to Asset Management.)

Within 30 days after calendar quarter end unaudited Quarterly Financial Reports for proceding quarter to include:

  • Quarterly Questionnaire certified by General Partner
  • Balance sheet and income and expense statement (accrual based)
  • Accounts payable and accounts receivable aging reports
  • Quarter-end rent roll
  • Occupancy Status Report
  • Accounting for restricted reserves deposits, withdrawals and balances (detailed by type of reserve: copy of bank statement is acceptable). NNEHIF does not need to receive copies of operating account or security account bank statements
  • Other development information as may be requested
  • Proof of payment of real estate taxes and renewal of property insurance, preferably by anniversary date of tax cycle and policy term
  • Copies of any reviews and site inspection reports by state HFA or first mortgage lender conducted in current year
  • Copies of any notice of default or findings of non-compliance, including IRS Form 8823, and any notice of pending IRS audit or recapture of tax credits

During the year, properties are required to send reports to the State HFA and file federal tax returns. Additionally, the state HFA’s conduct compliance reviews at properties. As part of NNEHIF’s reporting requirements, properties are to send copies of these reports to us. Please check the reporting requirements to see when you should be sending reports to us. The reporting deadline schedule can be printed here.

Reporting Requirements
(NNEHIF GOES GREEN! We ask that all files and reports be submitted electronically, if possible, to Asset Management.) Proprietary funds, please check your LPA Exhibit F.

  • Within 30 days after due date: copies of all required annual submissions to State HFA, including owner’s certification and leasing compliance report
  • 45 days after the end of the fiscal year: submission of draft federal income tax return with supporting documents are due to NNEHIF’s accountants Otis Atwell in South Portland, ME
  • 60 days after the close of the fiscal year: submission of partnership’s audited financial statements are due to Otis Atwell
  • 60 days after the close of the fiscal year: certification by General Partner regarding disclosure of any violations
  • 75 days after the close of the fiscal year: submission of federal income tax return to the Fund
  • 30 days prior to the fiscal year end: submission of partnership’s operating budget and proposed rent schedule for the next year
  • 30 days prior to the fiscal year end: submission of Pre-Audit Questionnaire
  • Proof of payment of real estate taxes and renewal of property insurance, preferably by anniversary date of tax cycle and policy term (all proofs of payment, can be included in next quarterly reporting cycle)
  • Financial statements of Developer, Sponsor and/or General Partner, preferably within 90 days of subject’s fiscal year end
  • Copies of any reviews and site inspection reports by state HFA or first mortgage lender conducted in current year (can be included in next quarterly reporting cycle)
  • Copies of any notice of default or findings of non-compliance, including IRS Form 8823, and any notice of pending IRS audit or recapture of tax credits

8823 Notification
When you receive a notice of 8823 Noncompliance from the State Housing Authority, please immediately notify the NNEHIF Asset Management Team. If the 8823 Form is uncorrected, we will work with you to correct the violation within the prescribed time.

Annual Budget and Rent Schedule 
Annual Budgets and rent schedules should be submitted to NNEHIF by November 30 of each year. While we prefer approved budgets, please send a copy of the budget and rent schedule, even if it has not been approved.

Casualty Disclosure Form 
In the event of a casualty loss, please contact the NNEHIF Asset Management Team. A copy of all the requirements for disclosure can be found in this document: Casualty Disclosure Procedures at NNEHIF.

Insurance
All copies of renewal of insurance should be sent to the NNEHIF Asset Management Team. The insurance requirements can be found in this document: Property Insurance Requirements.

Real Estate Taxes 
Please send copies of Real Estate Tax bills to NNEHIF, along with proof of payment. You can send this to us as part of the regular Quarterly Reporting package.