13. Must agree with Part III line 7 & Part V column 2. This is automatically carried over in MFIS & Vendor Software.

Transcription

1 --- SNR 1. Rental come should be based on full occupancy, cludg rent crease, if applicable Blank Contgency should be based on 3 years vacancy rate, not to exceed 15% with 15 units or less, or 10% if more than 15 units or approved SWOP that addresses vacancy problem. 5. Only reflect projected terest from the operatg and T&I account. Do not clude projected terest from the reserve account. 9. Vacancy under cap no SWOP is needed. Vacancy over cap must have SWOP. 13. Must agree with Part III le 7 & Part V column 2. This is automatically carried over MFIS & Vendor Software. 12. If partner is makg loan to borrower prior RD approval is required. /NP Asset Mgt. Fee 22. Must match with Loan Agreement/Resolution or Workout Plan and automatically carries forward from Part III, le Debt repayment other than RD (i.e. Loan from General partners, 3 rd Party Loan, etc.). Please specify Annual Capital Budget (From Part III, 4-6) 30. Is cash flow positive? A negative cash flow is permissible only if borrower has sufficient cash carryover and it does not appear to represent a trend that cannot be corrected. 31. Estimated projected cash on hand as of end of current budget year, cludg funds the General Operatg, Taxes & Insurance, & Petty Cash Accounts. Not current cash on hand figures. 17. Actual amount of RD annual debt payment only. 23. Reflect the Return to Owner and notate the Comment Column which year is beg reflected. 26. Carries forward from Part III,

2 Include this section normal unit turnover costs (i.e. patg, replacement of carpet, appliances, etc.) This is from Part V-Operatg. V Annual Capital Budget (from Part V Operatg) If utilities are cluded rent, be sure to check with utility provider for any planned creases. Include explanation with your budget narrative. 20. Must agree with Management Agreement or Approved Management Certification ( ). Base these fees on 100% occupancy. Mgt. Fees for 2008 is $39 per occupied unit. There should be nothg this box if management fees are beg paid. 27. Must be for site manager s s office, not management company. Show transmission charges here. 25. Telephone expense for property,, not management. 21. For 24 units or more, must have Fancial Audit, 16 thru 23 units, Revised AUP standards forthcomg, less than 16 units, need Borrower Certification. 24. Must advertise at least once durg year and more if needed per AFHMP. 28. Trag expense for property employees, not management employees 33. Admistrative expenses exceedg 23% of gross potential basic rents and revenues must be justified narrative. Note: Proposed expenses by subtotal category should not exceed 10% of last year s s expenses, otherwise need explanation the budget narrative. 2

3 2. This automatically transfers to Part I le 22, and must meet loan agreement/ resolution or servicg workout plan Annual Capital Budget (Part V-Reserve) 4. Annual Capital Buildg & Equipment Repair Budget (Part V Reserve). 7. This is automatically transferred to Part I le 13. This area is not completed for a proposed budget Written narrative must be submitted with the budget and must clude the followg: Brief description of the project and its status (i.e. it should highlight any issues concerng vacancies, unexpected matenance, or other items that affect the budget. A statement of project compliance. It should dicate any outstandg monitorg fdgs and the borrower s progress addressg these compliance problems. A description of the project s fancial status and any changes that occurred durg the past year and factors contributg to fancial difficulties. An explanation of any changes project expenses or cash sources that exceed the tolerance threshold. An explanation of projected capital expenditures and reserve withdrawals for the upcomg year and capital needs for the next 3 years beyond the budget year. If applicable, a statement that the proposed budget cludes a rent change and reasons for the change. Any additional documentation that may benefit the Agency reviewg the proposed budget. IMPORTANT - If budget is submitted without this Narrative, it will be considered INCOMPLETE & RETURNED!!! 3

4 HINT: Compare the rents here with your monthly project worksheet to verify if rents are correct. NOTE: The total Basic Rent Potential Income should agree with Le 1 of Part I. HINT: Be sure that you have a reasonable spread between the 1 and 2 bedroom units based on the square footage. Please use this section to show the proposed Utility Allowance for the comg year, and attach documentation to either reta or change the Utility Allowance amount. Note: If the average utility costs changed less than 15%, provide formation regardg rate changes and samplg of dividual tenant utility usage. If utility costs changed by more than 15% - need billg formation or documentation from utility companies and samplg of tenant utility usage from utility company. If no changes utility costs documentation budget narrative that no change rates occurred period beg reviewed or public release from utility provider dicatg no change rates. 4

5 Enter the number of Units planned for this column. 2 4 Unit Turnover Costs and Replacement items such as carpet, appliances, air conditioners, should be planned as an operatg expense and recorded here as well as on Part II, le 9 Anythg Shown this Column must be cluded Part III, Le 4 Anythg Shown this Column must be for a Capital Improv. & cluded Part II, le 9 NOTE: Roofg, concrete for parkg lots, sidewalks, etc., are an allowable use of reserve funds. Must agree with Part III, le 4 Don t forget to plan for any capital improvements that were noted on any spection completed by RD, Transition Plan Items, or Items from your Capital Needs Assessment. 5

6 This must be an origal signature if not transmitted through MINC. No stamp! Timeframes for Submittg Budget: If no rent change Due 60 days prior to start of fiscal year. For Rent change Due 90 days prior to start of fiscal year. Note: Prepare your budget accordg to approved Servicg Workout Plan, if applicable. 6