From: Emily Cannon [emily.cannon@me.usda.gov]
Sent: Tuesday, April 14, 2009 3:58 PM
To: Cannon, Emily - Bangor, ME
Subject: News from USDA Rural Development: Multi-Family Housing

September 2008

Logo
 
         InfoNow
               
Greetings! 
 
picket fenceWelcome to USDA Rural Development's InfoNow Newsletter. We hope you will find this information useful as you manage multi-family housing properties in Maine. If you have an idea for information you would like to see featured, email emily.cannon@me.usda.gov.
Open House Celebration Held at Lindenbrooke Park Apartments
 
Lindenbrooke Park Group

Residents turned out to celebrate the completion of renovations to Lindenbrooke Park, in Manchester, along with USDA Rural Development officials, Lindenbrooke Park property managers, congressional staff, and building contractors. The Open House was held at the apartment building on July 17.

Upgrades to the apartment building, which was constructed in 1983, included new roofs and windows, drainage improvements, and important handicap accessibility upgrades to the common area and to an apartment unit.
 
USDA Rural Development State Director Michael W. Aube stated, "USDA Rural Development is pleased to help enhance the quality of life for residents at Lindenbrooke Park, and is committed to providing affordable and quality housing for the people of Maine."
 
Sue Norris, a resident of Lindenbrooke Park who also serves as Vice President of the Board of Directors, spoke at the celebration. "I am very proud of Lindenbrooke Park and very happy to be a resident and a part of the community," said Norris.
 
USDA Rural Development provided a $250,000 Rural Rental Housing Loan and debt deferral of $450,396 through the Multi-Family Housing Revitalization Demonstration Program. Architectural services and construction supervision were provided by AlphaOne of South Portland.  The general contractor was Fortin Construction of Auburn.  Lindenbrooke Park is managed by C&C Realty Management of Augusta.
 
Interested in holding a public event? Contact Emily Cannon at emily.cannon@me.usda.gov for assistance. 
In This Issue
Lindenbrooke Open House
Lease Termination Notices
AFH Marketing Plans
Late Reporting
Falls Prevention
Teddies for Tragedies
Tenant Certifications
Policy Guidance
Property and Liability Insurance
Personally Identifiable Information
Electronic Funds Transfer
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Lease Termination Notices
 
Property managers are no longer required to submit lease termination notices to Rural Development, unless there is a specific situation that they want our staff to be aware of (such as tenants who have received unauthorized subsidy). Staff no longer has to review them for compliance with Rural Development regulations.
Affirmative Fair Housing Marketing Plans (AFHMP)

Maine Real Estate Managers Association (MREMA) is a valuable resource when updating your AFHMP for advertising and community contacts or to aid in outreach for filling vacancies. 
 
On their website you will find a newly revised contacts list for Maine located at http://www.mrema.org/library.cfm (scroll down to "Other".) The list has almost 700 contacts and is in Excel format to make sorting by agency name, town, county or type of marketing contact an easy task. They have also added codes that will help you in identifying a group that would be most likely to apply.
 
Remember, all projects are required to have a printed or electronic media advertisement at least once a year and each AFMHP should have a minimum of one newspaper or electronic media (including website address) listed. Additionally, community contacts that best represent those least likely to apply in section three need listed as well as groups that are associated with the project type and a group that represents those with a disability. These contacts need to be made at least annually and evidence of contact must to be provided/maintained in your marketing folder.
 
Hopefully you will find this resource valuable in your outreach and marketing activities!
Late Reporting of Additional Income by a Tenant
Money
 
In situations where tenants have been slow in reporting additional income and a recertification that encompasses the date of the increased income would cause a late tenant cert, do not submit the tenant cert to CSC.  It causes late fees/overage costs that have to be waived.  Instead, you should process a current tenant cert through MINC, using the updated information.  The amount that the tenant received that they were not entitled to for past months should be recouped as unauthorized assistance per 7 CFR 3560, Subpart O, rather than processing a tenant cert effective for a previous month.
Falls Prevention Course Offered
 
Tenants often stop participating in favorite activities because they have had a bad fall or are afraid of falling.  HealthReach RSVP has teamed up with Maine Partnership for Healthy Aging to offer a dynamic falls prevention course called A Matter of Balance.  This program acknowledges the risk of falling but emphasizes practical strategies to reduce this fear, and exercise to increase strength and balance.  Classes are held twice a week for four weeks for two hours.  To learn more about A Matter of Balance, you may contact:  Shari Bowen, RSVP Coordinator, 861-3534 or 800-427-1127, sbowen@mainegeneral.org  Although HealthReach services Franklin, Kennebec, and Somerset Counties, it will provide references for similar services in other counties.
Teddies for Tragedies Program
 
Do you have tenants that knit, sew, or crochet?  HealthReach RSVP is seeking volunteers to join in and craft teddies.  When tragedy strikes at home, whether it is due to homelessness or domestic violence, the children who are involved suffer the most.  Often they need to leave teddy beartheir belongings and all that they know behind.
 
Teddies for Tragedies hopes to alleviate some of the stress that prevails when these catastrophes occur.  Tenants can work from their apartments or in a group.  There is no deadline or quota to the number of teddies a volunteer must produce.  A piece of fabric, a ball of yarn and needles, a few hours spent on a craft could influence a little child for the rest of his or her life. 

To join the Teddy Team, please contact Shari Bowen at 861-3534, or 800-427-1127. Patterns will be sent out upon request.  Teddy donations do not have to be delivered- RSVP will collect and distribute.  For those who want to help, but can't crochet or knit, RSVP has volunteer opportunities in advocacy, mentoring, reading to children, working at a soup kitchen or food pantry, coaching A Matter of Balance, or helping youth and adults make better choices.  
Submission of Tenant Certifications
 
There have been a significant number of late tenant certifications over the last several months, causing overage and lost rental assistance to properties.  It appears that many people are waiting until the last ten days (from the 1st to the 10th of the month) to submit tenant certifications - even recertifications.  While the regulations allow this, it is not a prudent practice.  Many have discovered this the hard way - by being charged overage and losing rental assistance funds. 
 
Since the tenant certification has been completed this far in advance of the effective date, why not submit it as soon as possible through MINC? Since MINC requirements have been in place for several years, late submission of tenant certifications should be a rare event.  Therefore, waivers of penalties for late submissions will be rarely approved.   Further discussion of this memo follows:
 
For those who are using the MREMA model lease (and other leases most likely require similar tenant notification), one of the requirements is to give the tenant a 45-day notice of increase due to a change in income and a 45-day notice of rent change at annual recertification, unless the tenant has withheld income information or is delinquent in providing income information for recertification.  Everyone should check their lease requirements and State law for tenant notification requirements.  If tenants are being given the proper notification of rent change, it appears that the tenant certification would be completed at least 45 days prior to the effective date. 
Policy Guidance for Waiving Late Fees or Overage
 
The USDA Rural Development National Office issued an unnumbered letter dated May 9, 2008, titled "Policy Guidance for Waiving Late Fees or Overage.  A copy is attached to this email.   Please review this memo carefully as it provides guidance on waiving late fees and overage in MFH Section 515 properties.  These fees may only be waived in extenuating circumstances and only under certain instances as outlined in the memo.  If you are considering requesting a waiver of fees, please be sure to provide adequate justification that meets one of the criteria outlined in the memo.  The request must be submitted directly to CSC and must include the documentation outlined in this memo.  Once CSC receives a request, it will forward it to our offices for approval or denial of the request.
Property and Liability Insurance Coverage
 
Rural Development regulations and the borrower's loan documents require that insurance coverage must be for a term of at least 1 year "with evidence that a full year's premium is paid." Proper monthly funding of the tax and insurance account is the vehicle for having funds available to pay the annual premium when due.
 
We are seeing instances where insurance premiums are being paid quarterly - this is not in accordance with regulations, and this practice must be discontinued by making the annual premium payment when due.
Personally Identifiable Information for MFH Borrowers, Managers
and Tenants
 
Each borrower/manager should have recently received correspondence regarding the implementation of Personally Identifiable Information (PII) for MFH borrowers, managers, and securitytenants. 

Due to the need to protect privacy data, new account numbers have been provided to all customers, replacing the SSN/TIN as part of the account number.  Therefore, all future correspondence should use the new account number, including MINC transmission files, reserve requests, financial reports, etc.  Basically, any document that requires the case number must reflect the new account number rather than the existing SSN/TIN number you have been using. 

If you have not already accessed your new account number, you may do so via MINC.  We have attached two sample memos that are being used to notify borrowers and managers of the change.  Attachment A is a copy of the email notification that the MINC users should have received.  Attachment B is a copy of the memo that CSC sent to borrowers/management agents who do not currently use MINC.  Also attached is a copy of the unnumbered letter that explains this implementation in further detail.
EFT/PAD Forms
 
We recently changed the way in which Electronic Funds Transfer (EFT)/Pre-Authorized Debit (PAD) forms are processed in Maine.  Previously, we asked you to submit EFT/PAD forms directly to Rachel Henderson in the State Office.  Effective immediately, you should submit these forms directly to your respective servicing office for processing.  Questions regarding EFT and PAD should also be directed to the respective servicing office as well.
We hope you found the information in this issue of InfoNow helpful. If you have questions about information in the articles in this newsletter, please contact your local servicing office.
 
Sincerely,
 
Emily Cannon
USDA Rural Development
 
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