September 8, 2005 —The U.S. Department of Housing and Urban Development (HUD) required the electronic submission of financial data for HUD-assisted properties which started in September 1998. Since then, HUD has developed the Financial Assessment Subsystem-Multifamily Housing (FASS-MF) and assigned responsibility for the system to its Real Estate Assessment Center (REAC).

This secure web-based system provides the mechanism for the automated submission of audited annual financial information for multifamily properties. Submissions are required for owners of all properties with HUD-insured or HUD-held mortgages, or direct HUD loans or capital grants. Submissions are also due for owners of non-insured properties if there is a contractual requirement to submit financial statements.

Profit Motivated and Limited Distribution owners are required to submit audited data within 90 days after a property’s fiscal-year end.  Non-Profit owners that expend less than $500,000 in federal awards in the reporting year need only to submit Owners Certified annual financial data.  Non-Profit owners that expend at least $500,000 in federal awards during the reporting year should submit Owners Certified annual financial data within 90 days, and then audited financial data should be submitted within 30 days after receipt of the auditors’ report or nine months after the end of the fiscal year (Owners Certified submission is waived for owners who file the project’s audited financial report within 90 days).

The sheer volume of REAC submissions has at times overwhelmed its website and REAC has issued several time extensions due to system problems.  REAC is continuing to improve and enhance the web-based system.  On September 16, 2005 , Multifamily Financial Assessment (MF-FASS) will release its latest 6.0.3.0 system update. The system updates will provide enhancements and corrections to the current system. Among those updated improvements, the following items will affect those that submit financial statements:

• Insert M2M (Mark to Market) specific text into the Overdue Tracking letter. 

• Update the text in the four attestation reports to reflect changes in the Government Accounting Standards.

• Modify the business rule for Account #1400-240 which is applicable to M2M Limited Distribution projects with debt forgiveness.

• Change the title of Account #S3000-050 from Name of Individual (i.e., Property Manager) to Name of Property Manager.

The property owner is responsible for assuring that the electronic submission is complete, accurate, and filed on time, however, REAC requires an independent CPA to attest to the audited financial data prior to submission. Asher & Company, Ltd. has prepared over 500 annual financial submissions for owners, in accordance with HUD guidelines as well as providing CPA attestation service.

For more information contact Kevin Johnson or Ann O’Shea at 215-564-1900 or visit HUD’s website at http://170.97.67.13/offices/reac/products/prodmf.cfm.

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