Overdue AFS Report
HUD Audited Annual Financial Statements
who have not submitted annual audited financial statements (AFS) electronically for
fiscal years ending December 31, 1998, were referred to the Department
Enforcement Center (DEC). Effective September 2001, if an AFS is not received by
the 10th day of the month following the due date, an automatic e-mail letter is
sent to the owner's Multi-Family - Financial Assessment Subsystem (MF-FASS)
coordinator on the 11th day. This message tells the owner that the AFS is
same message advises the owner that if the AFS is not received within the next
30 days (grace period), HUD will place a non-compliance flag in the Active
Partners Performance System (APPS) and automatically refer the owner to the
Departmental Enforcement Center (DEC). Upon expiration of the 30-day grace
period and if the AFS is not received, the responsible Project Manager (PM) must
place an appropriate noncompliance flag in APPS. This "late filer"
flag must not be removed by the PM until the DEC advises the PM that the AFS was
submitted and that all non-filer issues are resolved.
some point, a letter will be sent that tells the owner that due to their failure
to file the AFS the property has been referred to the DEC for action. When this
letter is sent, a system generated project action is created in the Real Estate
Management System (REMS) titled "AFS Overdue: DEC Review Required."
This project action must be closed by the DEC Enforcement Analyst, not the PM.
Every Hub and Program Center Director receives a monthly report summarizing all
overdue AFS. This report must be shared with staff.
Centers nor the DEC are authorized to approve extensions to AFS filing due
dates. The Office of Asset Management defined specific criteria and then
provided Real Estate Assessment Center (REAC) limited authority to approve or
deny extension requests. The criteria are in an agreement between the offices.
The agreement describes:
- the procedures owners must follow to request
- the criteria REAC uses when approving or
denying extensions; and,
- the appeal process for denied requests.
extension requests must be filed electronically according to the instructions
in the Industry User Guide for the Financial Assessment Subsystem -
Multifamily Housing (FASSUB). Owners
needing additional assistance may be referred to the REAC Technical Assistance
Center (TAC) at 1-888-245-4860. When a Hub/Program Center or the DEC receives
an extension request from an owner or owner representative, direct the
requester to the, REAC Website
where the request can be filed on-line.
frequently asked questions
Multifamily Asset Management Submission
Are you OVERDUE submitting your
AFS and audit information electronically to REAC? I can assist you in doing
the online electronic transmissions. Do not wait until the HUD Enforcement
Center sends you a letter threaten Civil Money Penalty, because you did not
submit your AFS electronically. HUD could stop payment of Housing Subsidy
Contact us by
email at email@example.com