What You Need To Know About HUD Audit
If you offer affordable housing on any of the properties you own, you’re more than familiar with the U.S. Department of Housing and Urban Development (HUD). But if you’re new to the business, get ready.
Watch our video below or read the article underneath to understand more!
Typically, if you offer HUD-funded public housing, you will need to undergo an audit – and a HUD audit can contain a few additional steps past generally accepted audit standards. If you find yourself in this particular boat, read on for a few facts on HUD audits, including tax considerations, procedures, and requirements you need to know.
While there are a large number of requirements to offer HUD housing, there are some key points to be aware of. For instance, your buildings must be up to Minimum Property Standards that include HUD Guidelines for Durability on things such as doors, painting, cabinets, and carpeting.
You also must institute some level of rent control. There’s no set national number you have to abide by – instead, it will be based on rents on properties around your area
The big item when it comes to affordable housing taxation is the Low-Income Housing Tax Credit, which was created to incentivize investment and development of Section 8 and other housing for low-income individuals.
Properties built since 1989 must remain compliant for at least 30 years to receive the credit. You have to meet various requirements, such as ensuring a certain percentage of your units are occupied by households at or under certain percentages of area median income, not refusing Section 8 Voucher Holders, and ensuring all tenants continue to be eligible while they rent.
How to Deal with a HUD Audit
Compliance audits often center around your tenants – in other words, are you following the various guidelines necessary to ensure that all your tenants are compliant?
Among the things you can do to ensure a successful audit is to review tenant files at all of your properties, as well as move-in certifications. Also, if you own a large number of properties, make sure your property managers are thoroughly educated on filing requirements and best practices, including organization.
However, HUD requirements and filing can be a complex process, which is why the best step you can take is to speak with experts who can walk you through the entire process of a HUD audit. HWA Alliance of CPA Firms has extensive experience in a number of HUD audit compliance and accounting-related issues. HWA Alliance of CPA Firms has over fifty years of experience in auditing and accounting services. Let us help you successfully navigate the technical details of this process.
HWA Alliance of CPA Firms has over fifty years of experience in auditing and accounting services. Let us help you successfully navigate the technical details of this process.
Don’t go a HUD audit alone. Ensure the stability of your affordable public housing and make sure you’re compliant by contacting us online HWA Alliance of CPA Firms for a FREE evaluation of your compliance status.
HUD audit, McManamon & Co.,| Posted in McManamon & Co., small business
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