Updates to the Multifamily Housing Budget Submission Process
We are sharing some important updates to the Multifamily housing budget process, which are effective with the 2024 budget submissions. To streamline and enhance the budgeting procedure, we have made some changes to the Budget Reporting (BudRep) tool. It is essential that you use the latest version of the BudRep.
Key updates to the Rent Table, Rent Matrix and Budget Notes Tab:
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Rent Table for 100% Rent-Subsidized Properties and 2-Tiered Rent Increases: Properties in which 100% of the units receive rental subsidies (e.g., Project Based Section 8 or Housing Support), or properties applying for approval for a 2-tiered rent increase, are now required to fill out the Rent Table. A 2-tiered rent increase refers to instances where varying rents are applicable for new tenants as opposed to lease renewals.
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Rent Matrix for Non 100% Rent-Subsidized Properties: Properties where 100% of the units DO NOT receive a rental subsidy, the exclusive method for reporting rents is through the Rent Matrix within the BudRep. No separate Rent Matrix will be accepted. This BudRep Rent Matrix will encompass all units and provide in-depth details about current and renewed leases. NOTE: Properties with project-based rental subsidies on all units are exempt from submitting a Rent Matrix. If requesting a 2-tiered rent increase, the Rent Matrix is still required.
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Enhanced Budget Notes Tab: The Budget Notes tab has been upgraded to include four specific questions that require responses. The BudRep submission process will not move to next steps until these questions are answered. This change helps ensure that crucial questions are answered during budget submission.
The updates will help eliminate any common areas of confusion, improve accuracy, and help improve the timeliness of our approval.
To assist you in adapting seamlessly to these changes, a tutorial titled "Changes & Updates for Submitting a Successful 2024 Operating Budget," will be posted no later than Friday, September 8, 2023. This comprehensive resource will guide you through the revised process step by step. You will be able to access the tutorial under the ‘Reporting Tools: Budgets & Operating Reports’ section of the Oversight and Support for Property Managers webpage.
Budgets for the upcoming fiscal year are due 60 days before the fiscal year's end. For the 2024 fiscal year, budgets and all supporting documentation must be submitted by Wednesday, November 1, 2023. If you foresee any challenges in meeting this deadline, contact your assigned Asset Manager as soon as possible to discuss the possibility of an extension. Note that extensions are not guaranteed and granting an extension is at Minnesota Housing’s sole discretion.
We appreciate your assistance in implementing these changes and look forward to the coming year.
Questions?
Should you have any questions related to the updated budget process, reach out to your assigned Asset Manager. You can locate their contact details under the ‘Contact Our Teams’ section of the Oversight and Support for Property Managers webpage.
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