Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities

Financial Reports

Asset Management collects and analyzes various types of reports for Multifamily Developments. Financial Reporting requirements can generally be found in the Owner’s Agreements or loan documents with the Department and in the Uniform Multifamily Rules in Subchapter F, §10.607.

Annual Owner’s Financial Certification (AOFC)

Due Date: April 30th of each year

Reporting Period: As of December 31st of the previous year

All Developments funded by the Department must annually provide the data requested in the AOFC (formerly “Part D” of the AOCR) as required by Subchapter F, §10.607(d)(1). The first AOFC is due the second year following the award of funding, even if the development is still under construction. The AOFC consists of two general parts:

  • A financial report submitted electronically through CMTS, and
  • Submission of five general reporting items to back up numbers submitted in the electronic financial report:
    • Rent Roll for the year ending 12/31
    • Annual Operating/Financial Statements for the year ending 12/31 (this includes: 1) An income statement, 2) A balance sheet, 3) A statement of cash flow, 4) A Profit & Loss Statement, and 5) An IRS 990 form for Non-profit Organizations (if applicable)
    • Proof of Property Liability Insurance (the declaration page or ACCORD Cert) and invoice showing payment is current
    • Proof of Property Tax Payment to the local appraisal district
    • Reserve Account bank statements for the year ending 12/31 for all required reserve accounts

See the Compliance page for Training and Instruction information related to the annual AOFC:

AOFC Resources

2016 AOFC Instructions (PDF)

2016 Annual Owner’s Financial Certification Walkthrough (PDF)

CMTS Online Reporting Instructions

AOCR Information

Annual Property-Specific Audits

Due Date: Varies by Development

Reporting Period: Audit as of December 31st of the previous year

Annual property-specific audits are required for most Exchange, HOME, HTF, and TCAP funded Developments. The delivery of an annual audit to the Department is required by the HOME Deed of Trust (Section 7.11), the TCAP LURA (Section 4.6) and the TCAP Deed of Trust (Section 7.11), the HTF Deed of Trust (Section 7.11), and the Exchange Subaward Agreement (Section 9.1) and Recapture Mortgage (Section 7.11). These documents can differ slightly based on the year of award, but in general, property-specific annual audits are due to the Department by no later than one of the following: 1) The first business day following 30 calendar days after completion of the Audit but no later than May 29th of the following year, 2) 90 days after the end of the fiscal year, or 3) By April 30th. Owners and Agents should verify their delivery date with their property-specific documents. Property-specific audits should be submitted to your Asset Manager.

Exchange Audits

Asset Managers analyze audits for Exchange deals every year to assist in determining a final Special Reserve Account deposit. The below template is provided as a sample of an Excel worksheet that can be used to begin discussions with your Asset Manager about the Special Reserve Account deposit due. Note that the Subaward Agreement specific to your Development will include information related to the percentage of net cash flow due to the Special Reserve and may include additional definitions, restrictions, or exceptions that are not shown in this template.

Special Reserve Account Evaluation Template (XLS)

HOME and TCAP Developments with Cash flow Loans

Asset Managers analyze audits for Developments with Cash flow Loans at the time the note payment is due. The below template is provided as a sample of an Excel worksheet that can be used to begin discussions with you Asset Manager about payment due. The Note specific to your Development may include additional definitions, restrictions, or exceptions that are not shown in this template.

Cash Flow Loan Evaluation Template (XLS)

Quarterly Owner’s Financial Certification Reports

Due Date: January, April, July, and October of each year on the 15th business day of the month

Reporting Period: Quarterly (Oct – Dec), (Jan – Mar), (Apr – Jun), (Jul-Sept)

All Exchange and TCAP developments must submit quarterly reports as required by Subchapter F, §10.607(d)(2). These reports are due on the 15th business day of January (for the quarter Oct – Dec of the previous year) April (for the quarter Jan – Mar), July (for the quarter Apr – Jun), and October (for the quarter Jul – Sept). The Quarterly Report consists of two general parts:

  • A financial report submitted electronically through CMTS, and
  • Submission of three general reporting items for the quarter to back up numbers submitted in the electronic financial report:
    • A balance sheet
    • A statement of income
    • A statement of cash flow

Quarterly Reporting Resources

The following instructions can be used as a guide for the reporting to be submitted electronically through CMTS. Any further questions can be directed to your Asset Manager:

CMTS Quarterly Reporting Instructions (PDF)