Apartment Income & Expense Report Form (Page 6 of 6) in pdf

Apartment Income & Expense Report Form Page 6

REPLACEMENT RESERVES

Replacement reserves, provides for the periodic replacement of building components that wear out

more rapidly than the building itself and must be replaced during the building economic life.

Replacement reserves unlike Capital Improvements/Expenditures are part of the annual expenses of

operation. These expenses do not enhance annual net operating income or economic life, but

preserve and maintain the property and onsite improvements. Examples of Replacement Reserves:

roof covering, carpeting, kitchen bath and laundry equipment, HVAC compressors.

33. Please list reserves on hand and interest income earned year ending December 31

. Please specify

the reserve amount per unit if applicable.

CAPITAL IMPROVEMENTS

Capital Improvements/Expenditures do not recur annually, therefore should not be included within

annual expenses of operation. Capital Improvements/Expenditures may enhance the value of the

property by increasing the annual net operating income or economic life of the property, but the Capital

Improvement/Expenditure is not a periodic operating expense. Please report, in detail, any capital

improvements or renovations incurred to the property during the current reporting period ending

December 31

. Also list and detail any anticipated capital improvements in the future. When reporting

anticipated future improvements an itemized list with annual plan is required. If this is a multi-year

plan the years in question must be itemized and reported, please attach associated documents if

needed.

34. Report expenditures for capital improvements that were incurred in the last twelve months.

35. Report the cost of all future anticipated capital improvement expenditures.(itemized list required)

ANNUAL GROUND RENT

Complete if the property is subject to a land lease. A copy of the land lease must be provided for

consideration.

Mail your completed form to:

Real Property Tax Administration

Attention: Income & Expense

P.O. Box 71440

Washington, DC 20024

Apartment Income & Expense Report Form Page 6