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Document Sample
Maintenance and Operating Expense Review and Underwriting
Certification
(Section A to be completed by Owner/ Section B is to be signed by Lender)
Section A
Development Name
Development Address
Annual Gross Income All Sources $
Less Vacancy Rate of 7%*: $
Less Maintenance & Operating Expenses:
M&O Expenses per unit/year $
Total M&O Expenses for all units/yr. $
Less Real Estate Tax $
Less Replacement & Decorating Reserves $
($20/Rm & $30/Rm Minimum)
Subtotal NOI $
Debt Service Coverage Ratio 1.20 (1.25 for Rehab projects)*
NOI Available for Debt Service $
Mortgage Amount Rate Term
Fully Amortizing? Yes No Insured? Yes No
*Minnesota Housing will look for these Benchmarks to be maintained unless it has approved adjustment.
**Reference Page 2 of this Certification, which has been completed by Owner
Section B
We certify the above named development was underwritten utilizing the information provided in
this exhibit.
Lending Institution
Signature _____________________________________
(Print or Type Name)
Title
Date
Minnesota Housing 1 of 2 (HTC Form 29) MHR Form 329
Multifamily Housing Resource 4/2008
Housing Tax Credit Program
M & O Expense Review & Underwriting Certification
Maintenance and Operating Expense Review And Underwriting Certification
(to be completed by Owner)
Development Name Minnesota Housing Development Number
Full Development Address
APARTMENT DISTRIBUTION
(From Section IV.A. of the Minnesota Housing Common Application
Number of Total Rooms (#
Rental Rooms
Unit Type Dwelling Units % of Total DU’S of Units X
Per Unit
(DU’S) Rooms/Units)
0 BR 2.5
1 BR 3.5
2 BR 4.5
3 BR 6.0
4 BR 7.0
5 BR 8.5
Bed 2.0
A. TOTAL (A)
B. TOTAL MANAGEMENT AND OPERATING EXPENSE (Section IV.B.5 of the Minnesota Housing Common Application) Housing Tax Credit
Application
Sub Total - Annual Residential Operating and Expense $ (B)
Total Operating Expenses Divided by Total Rooms
(B) / (A) = $
Total Operating Expenses Per Room,
Per Year.
Who will pay the major heat utility?
OWNER TENANT
Guidelines
Based upon development type, the following maintenance and operating expenses per room per year will apply. Minnesota Housing staff will review the
development and evaluate the expenses per room per year as part of its underwriting process. Minnesota Housing will reserve the right to make adjustments to
maintenance and operating numbers based upon specific development type, circumstances and/or significant changes to the economics of the development’s
current market place
Metro Area Developments
2007 2008
Type Actual Data Benchmark
Townhouse 970 1,009
Walk-up 1,165 1,212
Elevator 1,190 1,238
Greater Minnesota Developments
2006 2007
Type Actual Data Benchmark
Townhouse 725 754
Walk-up 845 879
Elevator 1,000 1,040
The above chart reflects actual 2006 maintenance and operating numbers for developments in the Minnesota Housing portfolio. The chart also reflects projected
benchmark operating and maintenance numbers trended for 2007. These benchmarks maintenance and operating numbers may be adjusted at the sole
discretion of Minnesota Housing.
Minnesota Housing 2 of 2 (HTC Form 29) MHR Form 329
Multifamily Housing Resource 4/2008
Housing Tax Credit Program
M & O Expense Review & Underwriting Certification
