Tax-exempt Bond Post Issuance Compliance
A few examples of the many post-issuance compliance obligations include:
- Tracking the proceeds of a tax-exempt bond issuance to ensure that they are used for qualified purposes.
- Keeping detailed records of all expenditures and investments related to bond funds.
- Ensuring the project financed is used in a manner consistent with the legal requirements.
- Providing annual required disclosure information regarding the project’s financial and operating status.
IRS Recommended Actions
The most important step in a compliance monitoring program is to consult with members of the finance team, including bond counsel, at the time of bond issuance to determine the borrower’s obligations. Compliance responsibilities last, at minimum, for the length of the bond term.
PFA Compliance Solutions
Through an agreement with Compliance Services, Public Finance Authority and its borrowers are well positioned to respond to the increased scrutiny of affordable housing financings. State-of-the-art compliance monitoring procedures and software allow continuous monitoring of rental properties and ensure that potential problems are identified early and resolved quickly.
Monitoring procedures offered through Compliance Services include:
- Quarterly analysis of the income and rent calculations to ensure compliance with federal and state legal requirements
- Quarterly analysis and filing of Certificates of Continuing Program Compliance
- Review, acceptance and electronic filing of all compliance reports
- Electronic filing and access to recorded regulatory agreement for property
- Updates and maintenance to compliance software, compliance status, report history and files accessible through web-based software on a real time basis
- Site visits, file audits and physical property reviews at the time the property is placed in service and at least once every three years after the placed in service date, more frequently where problems arise
- Prompt notification to property owners of exception findings
- Automated updates of the annual HUD income and rent level changes
- Automated management reports
PFA sends annual reminders and updates to relevant changes in post-issuance compliance requirements to all of its borrowers. For more information or questions regarding post-issuance compliance, please contact a PFA Program Manager.
Post-Issuance Compliance Written Policies
Below are a number of useful links to various resources on the topic of post-issuance compliance.