City Funded

Annual Compliance Reporting for City-Funded Properties

The City of San Jose’s Asset Management Team oversees all properties with a recorded City of San Jose Affordability Restriction. These properties must adhere to the current City of San Jose Income and Rent Limits and the current Utility Allowance Schedule when determining tenant income eligibility and setting maximum rents for the restricted units. In situations where there are multiple affordability restrictions/income or rent limits set by different funding requirements or jurisdictions, the properties must adhere to the strictest requirement so it can meet all the layered restrictions.

In addition to ensuring property-related income and rent requirements are met each year, the Asset Management Team also ensures that project reserves are used appropriately, that the City receives accurate annual repayments of its loans, and that changes in existing projects' financial structures and owners are approved per the City's business terms.

Annual Compliance Reporting Schedule

Due April 1 (or October 31st for properties with fiscal year end of June 30th):
- Year-end Financial Statements – Financial statements for the period ending 12/31. Income statements, balance sheets, etc.
- Vacancy loss report – 12-month vacancy report
- Summary of Replacement Reserve Expenditures – itemized list of Capital improvements - Property, Plant & Equipment (consistent with Audit)
- Audited Financials - Third party financial Audits are due to the City 90-120 days after the Property’s fiscal year end; by April 1st
- City of San José Annual Net Cash Flow Template - Audited financial must include Net Cash Flow analysis/calculation.
Due May 1 (or November 1st for properties with fiscal year-end of June 30th):
- Annual Net Cash Flow – Net Cash Flow or Residual Receipt Payments are due May 1st, and delinquent if not paid by the 15th.
- Late Payments - Late payments are subject to 5% penalty fees, if not paid by the 15th.
- Payments - Please email assetsubmissions@sanjoseca.gov to inform the Portfolio Manager of the incoming payment and remit payments:
Payments should be made as follows:

By mail to:
City of San José, Housing
Attn: Asset Management
200 East Santa Clara Street, 12^th Floor
San José, CA 95113

By wire to:
Wells Fargo Bank, N.A. - RTN # 121000248
City of San José - Account # 4121-893267
Attn: Housing Department / Asset Management
Re: Project Name / Payment description (NCF, Fees, etc.)

When wiring payments, please email your Portfolio Manager and copy assetsubmissions@sanjoseca.gov to alert them of the incoming wire.
Due July 1:
- Rent Roll in City approved format. - San José affordable properties that are subject to the City’s rent restrictions are required to make periodic submissions of rent rolls.
- Fair Housing Compliance
  a. Description of steps taken to Affirmatively Furthering Fair Housing (AFFH).
  
  b. List of public outreach activities undertaken during the last year including date, location, estimated number attending, method of publicizing outreach, and the languages in which the presentations or publications were made.
  
  c. Photo of the Fair Housing Poster displayed in the development and map indicating location where the poster is displayed.
  
  d. Copy of the policy against housing discrimination and any other policy used to maintain compliance with Fair Housing laws.
  
  e. Copy of the Reasonable Accommodation Policy and its tracking log.
  
  f. Procedures used for tracking and investigating housing discrimination complaints and the list of any housing discrimination internal complaints and investigations, or external complaints (such as with DFEH or lawsuits filed in court).
  
  g. List of staff trainings regarding fair housing laws and your anti-discrimination policies. Include the date, names, and job titles of those attending.
Due October 31 (or May 1 for projects with FYE June 30):
- Full Operating Budget – All properties with a City Loan are required to submit their full operating budget for the City’s review and approval.
- The City of San José Budget Template must be submitted summarizing the Full Operating Budget.
- Proposed Schedule of Rental Income
- Long – Term Capital Improvement Plans (LTCIP)
- Evidence of Insurance Coverage - Properties must maintain active and adequate Insurance coverage listing the City of San José as Co-Insured/Additional Loss Payee. Due annually prior to expiration of coverage.
Doorway Posting and Vacancy Opening

All properties must provide a schedule of any planned open application period or planned open waiting list period in the upcoming year.

Affordable housing vacancies and application acceptance periods must be posted on the City of San Jose’s Portal at: https://housing.sanjoseca.gov/.

Please email Dave.Bopf@sanjoseca.gov for assistance with setting up an account.

Contact:

For questions regarding affordability restriction compliance, loan repayments, and transactions on City-restricted developments, please send an email to assetsubmissions@sanjoseca.gov.

For directions on new transactions, including Limited Partnership exits, property ownership transfers, loan restructuring, refinancing, consent/approvals, and re-syndications with tax exempt bond issuance please visit the City’s Affordable Housing Guidelines webpage.

Free viewers are required for some of the attached documents.
They can be downloaded by clicking on the icons below.

Word Viewer