As regards HUD accounting requirements, the agent shall be familiar with FHA No. 2230, Handbook of FHA Requirements Governing Fiscal Operations, Accounting, and Financial Reports for Multifamily Housing Projects. More specifically, the agent must be aware that the books and accounts shall at all times be maintained in reasonable condition for proper audit and subject to examination and inspection by the commissioner or his agents. The agent shall be further aware of the manner in which bank accounts must be kept, and that security deposit funds must be kept separate and apart from the project rental account. The agent shall be aware of the responsibility to furnish the commissioner, within 60 days following the end of each fiscal year, a complete annual financial report based on an examination of the books and records of the mortgagor. The agent is aware that said report must consist of:

The agent will prepare a budget for the owners and will prepare monthly accountings of the project expenditures as it relates to the budget, in a form substantially conforming to HUD form 93211. These monthly accountings will be sent to the insuring office and to the owner no later than the tenth of the month during the initial rent-up period and thereafter during sustaining occupancy. The agent will cause a reserved fund for replacement to be established and will monthly pay _________ to that fund as required by the regulatory agreement. The agent shall be familiar with the nature of the residual receipts account which will be established and maintained with the mortgagee. The agent shall be familiar with form 1705 and HUD form 91709 (Schedule of Computation of Rental Income in Excess of BMIR Rent) and the agent will cause said forms to be completed for the project on the first day of the month for payments claimed for the preceding month.

The agent is aware of certification procedures relating to a 221(d)(3) BMIR project and will keep records of all certification procedures relating to a BMIR project and will keep records of all certifications and recertifications of tenants on file.

The agent has read and is familiar with a regulatory agreement entered into on the _________ day of February, _________[year], between _________ foundation and the secretary of housing and urban development. More specifically, the agent is aware of the owner's obligation to maintain a reserve fund for replacements by payment of _________ per month to said fund. The agent recognizes the importance of abiding by all requirements of the regulatory agreement and will manage the project in accord with that agreement.

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