US Department of Housing and Urban Development Asset
US. Department of Housing and Urban Development Asset Resolution Team Detroit, Michigan
Asset Resolution Team ARS Team focuses on complex and troubled assets. Risk based approach allows Resolution Specialists to focus on remediating troubled assets. The Asset Resolution Team has the following members in our team: Andrew Uzzle: Andrew. m. uzzle@hud. gov Bonnie Spurling: bonnie. spurling@hud. gov Jackie Fultz: jacqueline. a. fultz@hud. gov Michelle Phelan: michelle. l. Phelan@hud. gov Angie Witt: angela. m. witt@hud. gov Kelly Mc. Intyre-Konkle: Kelly. Mc. Intyrekonkle@hud. gov Juan J. Cruz: juan. j. cruz@hud. gov
Risk-Based Asset Management: Why a property comes to our team : Performance Indicators: DSC, Vacancy, Reserve per Units Under 60 REAC Scores : 2 nd and 3 rd under 60 Scores Expiring Subsidy Contracts: Contracts expiring or contracts that have expired. Sale of Properties with subsidy contracts without approval of HUD. Delinquent Loans: Other Issues: Extraordinary Conditions Opt Outs, 8 BB Transactions and Foreclosures Working with properties in Michigan and Ohio.
Action Plans and other Servicing Actions: Our team works in conjunction with the Mgt. Agent to identify the underlying issues that properties are experiencing. One of the tools our team uses is Action Plans. An action plan is a document that is used to identify issues and the root causes that a property is experiencing. It also identifies the plan of action that is to be followed by the property. For Financial Findings (Unauthorized distributions of funds, loans from project funds, purchases of shark tanks) our team will work on verifying the issue and involving Enforcement Center if further enforcement actions are necessary. Consecutive under 60 scores are handled by our team.
Consecutive Under 60 Scores : 1 st Under 60 Score: An owner meeting will be scheduled within 10 days of release date. Notice of Violation of Regulatory Agreement and/or Notice of Default of HAP Contract will be sent to borrower. A Compliance, Disposition and Enforcement (CDE) Plan will be requested from owner. If the Owner fails to take the necessary corrective action, then the Section 8 assistance may be reduced, suspended, abated, or terminated the above referenced HAP, and any other remedies may be taken as provided by the parties’ agreement(s) or as otherwise provided by law. A follow up REAC Inspection will be scheduled for the following year. It is strongly recommended that you prepare for the REAC inspection. Some owners and agents choose to hire a consultant. HUD will not authorize this as a project expense. It is expected that the management agent are familiar with the REAC inspection and the requirements. Therefore, any fees for hiring a consultant would be an owner or agent expense. We are including an attachment with guidance for preparing for the REAC inspection.
2 nd Consecutive Under 60 Score: We told you not to get a consecutive Under 60 Score! Don’t put us in this situation. Your property will be transferred to the Asset Resolution Specialist Team which means your property will be closely monitored on a monthly basis. An action plan will be requested along with Monthly Accounting Reports and other requirements. An owner meeting will be scheduled within 10 days and you will be flagged in our APPs system. At this point you have not met the conditions of the previous NOV or NOD and the CDE Plan. Your AE or ARS will review the inspection report along with other pertinent information and make a decision and recommendation regarding how HUD will respond to the Consecutive under 60 score. Potential consequences of 2 nd Consecutive under 60 Score: Impose Civil Money Penalties: If your property has a Section 8 HAP Contract, the assistance may be reduced, suspended, abated, or terminated under the above referenced HAP, and any other remedies may be taken as provided by the parties’ agreement(s) or as otherwise provided by law. Encourage a transfer of the project or transfer and assignment of a HAP Contract Seek judicial appointment of a receiver to manage the property or seek a judicial order of specific performance to cure all project deficiencies In the case of an insured, HUD-Held, Section 202 Direct Loan or Capital Advance, we may proceed with assignment and/or foreclosure fo the loan or capital advance. The HUB Director May recommends that the Department exclude the owner from further participation in HUD Programs.
Overview Identify the underlying issue Address the underlying issues with a framework of tools available to our team and owners. If an owner action plan is appropriate, determine which overall Property Improvement Plan is applicable and put into action. Ideally, the Action Plan will work and all issues will be resolved. If only this was the case all the time. Enforcement Actions: Accelerate the mortgage/ Place property into receivership/ Sell the note/ Foreclose on the property/ Fine Owner with Civil Money penalties. There is not one process that will work for all properties, each property is different.
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