Form Hud-9834 - Management Review For Multifamily Housing Projects

U.S. Department of Housing and Urban Development

OMB Approval No. 2502-0178

Management Review for Multifamily

Exp. 11/30/2011

Office of Housing – Federal Housing Commissioner

Housing Projects

Public Reporting Burden for this collection is based on the size of the project and the level of compliance and is estimated to average 8 hours per response, including

the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of

information. This form replaces form HUD-9838, Management Review for Unsubsidized Multifamily Housing Programs. This information is required by 24 C.F.R.

880.612, 24 C.F.R. 884.224, 24 C.F.R. 886.130, 24 C.F.R. 891.450, and/or the Regulatory Agreement. This agency may not collect this information, and you are not

required to complete this form, unless it displays a currently valid OMB control number. The information is used by HUD to evaluate the quality of project

management, determine the causes of project problems, and devise collective actions to stabilize projects and prevent defaults. The information is gathered and

recorded during a review of project operations. HUD does not ensure confidentiality to respondents.

PURPOSE: To assess management and oversight of multifamily housing projects.

INSTRUCTIONS: This form is to be completed by HUD staff, Performance Based Contract Administrators/Traditional Contract Administrators (CAs) and

Mortgagees of Coinsured Projects (Mortgagees). The Management Review form consists of three parts: Desk Review, On-site Review with Addendums, and Summary

Report. All Reviewers of subsidized projects must complete all Addendums (A, B & C). Reviewers of unsubsidized projects must complete Addendums B & C only.

If any questions on any given form are not relevant to the program under review or if the information is not available, notate with “N/A”. Additional guidance regarding

the management process can be found in HUD Handbooks 4350.1, REV-1 and 4566.2.

A. Prior to On-Site Review

Complete Part I – Desk Review

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To complete the Desk Review worksheet prior to the on-site visit, review the project files, system reports, other documents, and contact the HUD

representative for any unavailable information needed to complete the desk review. This portion of the review will assist the Reviewer in identifying

potential problem areas. HUD staff must complete the entire Desk Review for subsidized projects. For unsubsidized projects, HUD staff/mortgagees must

complete all applicable sections. CAs must complete the entire Desk Review except where noted “This question applies only to HUD Staff/Mortgagees.”

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Schedule a date for the on-site review with the owner/agent and confirm the review date in writing. The owner/agent should be given at least a two-week

notice in writing and notified of the documents that need to be available the day of the review, as specified in Addendum C. Addendum C provides a list of

documents notated by the Reviewer that the owner/agent must have available during the on-site review. Addendum C and Part A of Addendum B must be

forwarded to the owner/agent with the letter confirming the scheduled on-site review. The Reviewer may request additional items as necessary.

B. Conducting the On-Site Review

Complete Part II – On-Site Review

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On-Site Reviews will be completed as follows:

(1) HUD staff and Mortgagees must complete all applicable questions in Part II.

(2) CAs must complete all questions in Part II except where noted “This question applies only to HUD staff/Mortgagees.”

(3) HUD staff completing a review of a project which is also reviewed by a CA will only complete questions not applicable to CAs.

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Use additional sheets as necessary to complete applicable questions.

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Upon completion of the on-site review, the Reviewer will hold a close-out session with the owner/agent to discuss observations and conclusions.

C. After On-Site Review

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The Reviewer will record deficiencies, findings and corrective actions. Findings must include the condition, criteria, cause, effect and required corrective

action. The condition describes the problem or deficiency. The criteria cite the statutory, regulatory or administrative requirements that were not met. The

cause explains why the condition occurred. The effect describes what happened because of the condition. The corrective action provides what the

owner/agent must do to eliminate the deficiency. The corrective action must include a requirement that the owner determine and correct not only the

discovered errors and omissions, but also describe to the Reviewer how and what systems, controls, policies and procedures were adjusted or changed to

assure that the errors and omissions do not reoccur. In completing the Report of Findings, the Reviewer should also indicate the target completion date.

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Complete Summary Report as follows:

Based on the Report of Findings, the Reviewer will assess the overall performance for each applicable category. The Reviewer must indicate A (Acceptable)

or C (Corrective action required) and include target completion dates (TCD) for all corrective action items. For those items not applicable, indicate “N/A” in

the TCD column.

For each of the seven major categories (A, B, C, D, E, F, and G), rate each category by checking Superior, Above Average, Satisfactory, Below Average, or

Unsatisfactory. If a section was not completed, indicate “Not Rated”. After rating the individual categories, an overall rating must be assessed. This rating

should be based upon the individual line items, the seriousness of the findings, and the ratings assigned in categories A through G. CAs will rate all sections

except Section D. Section D is for HUD staff/Mortgagees only. Additional guidance for ratings can be found in HUD Handbook 4350.1, REV-1.

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Distribute the Summary Report and cover letter as follows:

(1)

Project Owner (original)

(2)

Management Agent (copy)

(3)

HUD office for PBCA reviews rated below average or unsatisfactory

(4)

HUD office for all TCA reviews

*A copy of the completed Management Review Report, form HUD-9834 and supporting documents must be maintained in the project file.

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If a below average or unsatisfactory rating is determined, the owner/agent must be afforded an opportunity to appeal. Guidance on appeal procedures is

provided in HUD Handbook 4350.1, REV-1.

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All Secure Systems users must document all required data in the Real Estate Management System (REMS).

D. Management Review Deficiency Follow up:

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Reviewer must conduct follow-up activity until all corrective actions as required in the Summary Report have been completed. Enter applicable close-out

dates in REMS.

NOTE: The Fair Housing and Equal Opportunity (FHEO) checklist has been included as part of this management review form; however no determination of

compliance with applicable Fair Housing laws and regulations is included in the summary report. CAs must forward the original checklist (Addendum B) to HUD staff.

HUD staff must maintain the original checklist in the project file and forward a copy to the Office of FHEO in the appropriate jurisdiction for review.

Form HUD-9834 (6/2009)

Ref. HUD Handbook 4350.1, REV-1

and HUD Handbook 4566.2