SC Housing’s Asset Management team oversees key parts of multifamily affordable housing developments, supporting their ongoing success and compliance. For newly awarded Low-Income Housing Tax Credit (LIHTC) and Tax-Exempt Bond (TEB) projects, our primary objective is to track progress and assess when placed-in-service applications may be submitted. For existing projects, we monitor a portion of SC Housing's portfolio to ensure financial stability, relying on the submission of audited financial statements and periodic requests for adjustments to restrictive covenants.

The Asset Management function will evolve in the coming months to encompass additional responsibilities, strengthening its role in overseeing SC Housing's portfolio. Future tasks may include managing closings, reviewing construction cost changes, evaluating quarterly reports, ensuring insurance compliance, handling reserve withdrawal requests, mitigating financial risks, and more.

Annual Audited Financial Statements

Each year, management companies or property owners must submit an Excel template containing financial data for the previous fiscal year by the June 1st deadline. This data, along with the PDF version of the audited financial statements, should be uploaded via SC Housing’s Certification Portal or secure file exchange.

We use this data to perform a comprehensive risk analysis, comparing it to the audited financials for accuracy. Key risk indicators include vacancy rates, rent non-payment (bad debts), replacement reserve balances, debt coverage ratios, and discrepancies in expense line items.

Two types of developments are required to submit audited financial statements:

• LIHTC/TEB developments within the 15-year compliance period
• Developments with 10 or more HOME/NHTF units still within the affordability period

The financial statements must be submitted in an unlocked, non-scanned PDF format, and should include:

• Gross potential rental income
• Vacancy details
• Expense breakdowns
• Reserve account details
• Permanent financing information

Failure to submit required information by the deadline will result in a $1,000 fine per property. Incomplete or inaccurate submissions may lead to further penalties, including suspension or debarment.

Requests for Amending Restrictive Covenants (LURA)

If you wish to request a change to your restrictive covenants, you must complete the LURA Amendment Request form and provide the necessary supporting documentation. Submit your request to assetmanagement@schousing.com. A non-refundable fee of $1,000 is required for the request to be reviewed, regardless of the outcome.