Property Management Frequently Asked Questions

Physical inspections are conducted at least annually on all developments with a first mortgage financed by the Agency. The exterior, common areas, mechanical rooms, all vacant units and a random sampling of occupied units are inspected.

4d property tax reductions are based on reducing the class rate for 4d enrolled properties. Property Tax reform enacted in the 2001 Special Legislative Session reduced the class rates for rental properties across the board by taxes payable in 2004. The estimated 4d reductions possible after full implementation of reform were judged to be small enough that 4d was slated for a phase-out by 1/1/2004.

4d owners should retain their compliance records through at least 2004, or until compliance monitoring is completed.

No, security deposit funds must be held in a separate interest bearing account, opened in the Agents name and designated in the name of the development. The account must be FDIC insured and the balance must be maintained at an amount equal to or greater than the liability of the security deposits collected, including interest.

The 256A, B, C, and D, monthly operating reports are due to the Agency by the 15th of the month for the preceding months activity. The bank statement, reconciliation and security deposit account statement should be included with the report.

There are different limitations on partnership distributions based on the first mortgage program. Distributions may be made after the Agency receives, reviews and approves the audited financial statement. Audits are due within 60 days after the end of the fiscal year, which often coincides with the calendar year, and are reviewed in the order in which they are received. Upon review and approval, a letter will be sent to the owner and agent notifying them of the amount of the approved partnership distribution. The maximum distribution allowed is recorded in the 402 form, a first mortgage closing document.

Initial rents for a development are established in the 402 document. Rent increases, regardless of the program, must be submitted in writing to the Agency. Approvals are based on the following factors: 1) What are the rent levels in the comparable market place? 2) Will current residents be displaced by the increase? 3) Does the project need the requested amount of the increase? 4) What are the programmatic rent restrictions of the property?