Property Management &
Tax Credit Compliance
Getting Started Workshop
Tera L. Lockley
Virginia Community Development Corporation
Chrystal Strickler
Community Housing Partners Corporation
Presentation Goal
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To provide an overview of property
management activities to help you:
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Decide whether you are ready to manage your
own property
Think about managing in the future, or
Make an informed decision on how to choose a
third-party management agent.
Property Management Basics
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Developing A Marketing Plan
Lease-up Activities
Model Lease & Resident Selection Criteria
Move-in & Move-out Activities
Rent Collections
The Operating Budget Process
Financial Reporting
Long Range Management Plan
Preventive Maintenance
Fair Housing AA, VRLTA, Section 504 RA, ADA
Evaluating The Management Agent & Fee
Marketing Plan
Should Include
 Property Description
 Lease-up Goals
 Targeted Geographic Area
 Marketing Strategy
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Newspaper Advertising. Flyers, Brochures
Community Outreach
Resident Referrals
Open Houses
Lease-up Specials
Property Signage
Calendar of Events
Lease-up Activities
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Flexible Office Hours
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Maintain Traffic Report
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Guests Cards
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Model Apartment
Sample Traffic Report
Model Lease &
Resident Selection Criteria
Lease Form
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Conform With State LTA Requirements
Should Be Workable, Lawful, Enforceable
Have Attorney Review
Typical Resident Selection Criteria*
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Employment History
Prior Landlord History
Credit Review
Criminal Background Check
*Other criteria may apply depending upon project financing
(ex: LIHTC, Section 8, HOME, Bond Program Financing)
Move-in & Move-Out Activities
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New Resident Orientation
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Review Lease & Attachments
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Walk Through Inspection
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Move-in / Move-out Inspection Form
Rent Collections
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Develop Property Rent Collection Policy &
Forms
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Review With New Resident At Move-in
Orientation
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Enforce!
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Agreement For Payment Of Delinquent Rent
Sample Rent Collection Policy
Rent is due on the first day of each month. If rent is not paid by the 5th of the month the
following action is recommended.
Day of Month
Recommended Action
6th
A five day pay or quit notice should be issued advising the resident to
pay rent by the 11th of the month.
12th
The landlord will obtain an unlawful detainer from the local court seeking
possession of the unit. The court clerk will set a hearing date at that time.
After the 12th
If the resident pays rent after an unlawful detainer is obtained, a rent with
reservation letter should be sent to resident advising that the landlord
reserves the right to proceed to eviction.
Court Date
Upon court ruling for landlord possession for nonpayment of rent, the
resident has 10 days to appeal. After the 11th day, the landlord should
obtain a writ of possession from the local sheriffs office.
Eviction Process Within 24 hours, the sheriff will post writ on resident’s door giving the
resident 24 hours to vacate the property.
Sample 5 Day Notice
Sample Agreement For
Payment Of Delinquent Rent
Operating Budget Process
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Who Should Be Involved?
Should Include A Budget Narrative
Includes: Income, Expenses & Debt Svc,
Reserves, Capital Improvements
Information To Consider
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Prior Year & Current YTD Performance
Market Conditions
Who Ya Gonna Call?
Capital Needs (Ex. Roof Replacement)
Operating Budget Sample
Operating Budget Sample
Operating Budget
Sample Narrative
Financial Reporting
Typical Monthly Project Financial Reports
Include:
 Profit & Loss Statement
 Balance Sheet
 Property Rent Roll
 Accounts Payable Reports
 Accounts Receivable Reports
Profit & Loss Statement
Sample Balance Sheet
Property Rent Roll
Sample Report
Accounts Receivable
Sample Report
Accounts Payable
Sample Report
Long Range
Management Plan
It’s A Multi-Year Forecast
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Income
Expenses
Capital Improvements
Capital Needs Assessment
Preventive Maintenance Plan
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Benefits
Enhances Marketability & Resident
Retention
Increased Cost Effectiveness
Extends Useful Life Of Equipment
Cost Savings To Resident (ex: lower utility
costs)
Frequency
Monthly, Quarterly, Semi-Annually, Annually
Sample Preventive
Maintenance Report
Fair Housing &
Uniform Residential LTA
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Fair Housing Amendments Act laws provide a critical way to deter
and counteract housing discrimination (ex: family composition,
discrimination based on race, religion, steering, etc.)
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VRLTA Landlord Tenant Act governs the rental of residential
property. It is composed primarily of state statutory and common law
which spells out common rights and obligations of the landlord and
resident.
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Section 504 Rehabilitation Act of 1973 & ADA of 1990
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Need For Continuing Education
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Who Needs It?
Property Management Staff
Maintenance Staff
Evaluating The
Management Agent
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General Experience
Review Policies & Procedures Manual
Property Management Staff
Experience & Training Opportunities
Review Sample Reports
Visit Other Portfolio Properties
Talk With Other Clients
Management Agent’s Hats
Housing provider
Fair housing advocate
Social worker
Collection agent
Maintenance
Technician
Community organizer
Marketing specialist
Compliance officer
Accountant
Leasing agent
IRS SECTION 42
FEDERAL LOW INCOME HOUSING
TAX CREDIT PROGRAM
COMPLIANCE OVERVIEW
Low Income Housing Tax Credit
Program Compliance
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Minimum Set Asides
LIHTC Program Compliance Period
Record Retention
Rent & Income Limits
Determining Eligibility
Sample Resident File
Annual Recertification Process
Subsidy Layering Restrictions
LIHTC Compliance Training Options
Minimum Set Asides
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Federal Minimum Set Aside
Requirements
20% of units @ 50% of AMI
40% of units @ 60% of AMI
Stricter Occupancy Requirements
Subject To Owner’s Contract With
State Agency (Ex: 100% @ 60%)
LIHTC Program
Compliance Period
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Time Frame For Complying With
LIHTC Program Requirements
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Minimum Term Of 15 Years
Can Be Extended Beyond 15 Years
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Record Retention
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First Year Original Resident Files Kept
For 6 Years Beyond Compliance
Period
Future Files Retained For 6 Years
After Move-Out Date
Rent & Income Limits
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Must Adhere To LIHTC Program Rent
& Income Limits
Hold Harmless/HERA Income Limits
Available For Each Virginia Locality At
www.vhda.com.
Sample Rent Table
Sample Income Table
Utility Allowances
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6 available options in Virginia
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HUD rent schedule
RD approved budget
PHA(Public Housing Authority)
Utility Company
HUD Utility Model
Engineer
Utility Allowances
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Evaluated annually
90 days to implement, after publish
date
Utility allowance figure is subtracted
from the gross rent
Determining Eligibility
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Eligibility Checklist
Property Application
Student Certification form
Income & Asset Verification Forms
Tenant Income Certification (TIC)
Lease Agreement
Tax Credit Lease Addendum
Eligibility Checklist
Sample Verification Form
Tenant Income
Certification (TIC) Form
Sample Resident File
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Rental Application & Application
Addendum
Lease & Lease Addendum
Privacy Act Letter
Tenant Income Certification
Income/Asset Verification Forms
Other Property Required Forms
Annual Recertification Process
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Must Be Completed Within 12 Months
After Initial Income Certification
Begin Recertification Process 120
Days Before Lease Anniversary Date
Subsidy Layering Restrictions
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Other Program Restrictions
Project Based Section 8
HOME Program Funding
Bond Financing
Rural Development
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Must Meet All Program Regulations
LIHTC
Report of Noncompliance
LIHTC Compliance
Training Options
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A.J. Johnson Consulting – 757.599.3964
Elizabeth Moreland Consulting – 1.800.644.0390
TheoPro Compliance & Consulting Inc.
1.877.783.1133
Quadel Consulting – 1.800.987.2581
Spectrum Consulting – 207.767.8000
National Center For Housing Mgt. – 1.800.368.5625
Helpful Resources
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VHDA – www.vhda.com
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Institute of Real Estate Management – www.irem.org
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Mid-Atlantic AHMA – www.midatlanticahma.org
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Novogradic – www.novogradic.com