The key to making the 168(h) election is to be aware that you can only file it with the GP’s and the not-for-profit’s first tax returns. As long as you set up the partnership the right way and file a written election statement with the IRS, the election will last for the life of the partnership.
Expert HUD Auditors
Timely,
Friendly
HUD Auditors
Lemler Group specializes in HUD audits to serve clients better.
Since the founding of our CPA firm, affordable housing has been our niche. This focus allows us to serve others with our full attention. Our HUD auditors stay completely up to date with HUD regulations, which means our clients are the first to know when anything about their financial requirements changes.
Our Services
We perform audits, reviews, and compilations for both non-profit and for-profit HUD properties across the country.
Every engagement is unique, so we’ll work with your team to complete the projects and compliance measures you need. These include:
- Tax forms associated with the property and owners (K-1s, state returns, etc.)
- Financial Assessment Subsystem (FASSUB) filing
- SF-SAC filing (not-for-profits only)
- Single Audits (formerly A-133), if applicable
And since we know you don’t want to deal with the consequences of missing the government’s due date, which includes a $27,500 fine, we complete all services by HUD’s 90-day deadline every year.
Timely Service
We don’t file extensions if we don’t have to. This means you get your financial statements on time, every year.
Easy Contact
No more paying for conversations about your audit. We keep in touch with our clients all year long, free of charge.
Few Interruptions
Tired of playing host to auditors for weeks on end? We can work remotely or in-house, whichever you prefer.
“Lemler Group offers great suggestions and helpful hints. We actually look forward to their annual visits.” — Richard, President of HUD Properties
HUD Frequently Asked Questions
I recently acquired my first property with a HUD loan. What do I need to do?
Your first steps should include determining if you need an audit for the current year, choosing an auditor to perform it, and making sure your property management company knows how to handle HUD compliance measures for your new loan.
What happens when you miss HUD’s audit deadline?
HUD requires properties (also called projects) to submit audited financial statements to them within 90 days of their year-end date. If they don’t receive this information, the project may be fined $27,500 and certain accounts may be frozen. The project owner will receive a letter from HUD’s Department of Enforcement (DEC), and if no action is taken, the project could lose the loan and/or rental assistance.
When can I take distributions from the property?
For-profit organizations that receive HUD funding to run their property are allowed to take distributions twice a year — once at year end and once halfway through the year. Not-for-profit properties cannot take distributions, and their surplus cash is deposited into the residual receipts account.
Latest Blog Post
Popular HUD Posts
Latest Blog Post
Popular HUD Posts
HUD For-Profit Surplus Cash Calculation
by Jeff Grogan | June 8, 2018 | Financial Guidance
Calculating surplus cash without an experienced accountant can be tricky and risky. If you do the calculation yourself, our HUD auditors will be happy to review, re-calculate, and make suggestions where needed so you take home the right amount and avoid a finding on your audit.
HUD Not-For-Profit Surplus Cash Calculation
by Jeff Grogan | June 8, 2018 | Financial Guidance
Unlike for-profit properties, non-profit ones will lose any surplus cash they don’t use throughout the year. That’s why an accurate and early calculation is key to maintaining safe housing for at-risk communities.