How can I save money on my required HUD Audit?
Be sure your accounting records are in good shape and all Balance Sheet accounts are supported by backup documentation. Your accounting staff can create what is called a lead sheet for all balance sheet accounts. A lead sheet details all account activities including attachments that support all major entries. I would recommend you have a qualified accountant do this step as it can save you money if done right. Be sure you give your accountant full access to the general ledger and books or records.
When should I target getting information to my accountant to begin the audit?
Get all audit work papers “audit ready” for your accountant by the first week of February as the Financial Statements need to be filed with REAC by March 31 or March 30 if in a leap year.
I just took out a HUD loan. Is there anything I need to do as far as registration before my auditor begins the audit?
With a new property, be sure the property is completely registered in the HUD system well before the financial statement reporting time deadline.
Is it wise to review all tenant files on my Section 8 property for HUD requirements before the auditor requests a sample?
On Section 8 housing be sure you have reviewed all your tenant files for accuracy before your auditor asks to see them.
I signed a document as part of the loan closing documents called “Regulatory Agreement”. Should I read this document?
Be sure you have read your Regulatory Agreement and understand it. Too many clients neglect this step and find themselves in serious trouble for not adhering to all the agreements they have made with HUD. If you have any questions about your agreement please contact Wilson & Associates.
Can I just choose any property manager for my HUD Section 8 property?
For Section 8 Housing be sure you hire a competent property manager who is familiar with Section 8 housing and the voucher subsidy system. Good Property Managers familiar with Section 8 housing will have competent staff who are trained with filing voucher subsidy requests plus handling all the complicated paperwork necessary for a Section 8 housing project.
Is FHA continuing to endorse loans during the COVID-19 National Emergency?
Insurance endorsements for all FHA Title I loans and Title II forward and reverse mortgages continues during the COVID-19 National Emergency; however, there may be processing delays if staff is working remotely.