I have a compliance question – can I call OCCH?

Certainly! As a value-added service, our Asset Management department is always available to assist our partners with compliance questions. Our Asset Management department is staffed with State certified and other well-trained individuals who are available to answer compliance questions.

Why does OCCH inspect tenant files and conduct physical inspections annually?

Ohio Capital Corporation for Housing has made a commitment to our investors that we will complete an annual site audit for every project in our funds. The annual audit serves a number of additional purposes, however. Written reports provide only part of the picture of performance. Issues relating to curb appeal, signage, and landscaping can only be identified by a physical inspection. The audit should also identify any potential problems or weaknesses with regards to compliance or the physical plant. Once these issues are identified, the general partner and management agent will have time to address the issues prior to an OHFA or IRS audit. The audit also allows OCCH the opportunity to identify "best practices" that might be useful to our partners, such as superior compliance policies, marketing strategies and preventative maintenance approaches. At the same time, we can identify training or technical assistance needs or other areas were OCCH might be able to provide assistance to our partners. Finally, the information gathered during the audit from the management agent staff, site manager and maintenance technician allows the OCCH Asset Manager to fully respond to issues and requests for additional information from our Investors.

What happens if a project fails to comply with the LIHTC regulations?

If a property is in non-compliance with the LIHTC regulations, returning the property to compliance as soon as possible is the top priority. Remember that OCCH has the same interest the owner has – to restore the property to compliance as soon as possible. If your property is in non-compliance, work with your asset manager and/or OCCH’s compliance specialists to resolve the non-compliance.

If a property is found to be in non-compliance, severe penalties could be imposed. If a project is cited for non-compliance with LIHTC regulations, the program allows for the Internal Revenue Service to demand the ‘recapture’ of tax credits previously claimed by investors. Additionally, investors would likely be required to pay penalties and fines. In turn, the general partners involved in this project could be required to pay fines to compensate the investors for their loss of tax credits.

In summary, non-compliance with LIHTC regulations is a costly event for all parties involved. As such, it is imperative that the managing agent be experienced with LIHTC regulations and proactive in resolving problems while communicating regularly with OCCH.

How can OCCH help my management company improve its performance?

OCCH can offer a variety of services to management companies to enable them to improve their performance:

• Referrals to training and technical assistance
• OCCH Training Academy programs
• Marketing consultants information list
• Real estate tax attorney information list
• Insurance broker information list
• Pre-leasing strategies for properties delayed by construction
• Exterior physical and landscaping analysis and recommendations
• Marketing plan and public relations materials review and comment
• Rent collection strategies to remedy delinquency
• Debt refinancing options
• Resident Development Fund resources
• Post-construction follow-up or review
• Review and analysis of operating costs against similar projects within OCCH portfolio