Reserve for Replacement Guidelines
RESERVE FOR REPLACEMENT GUIDELINES
REGION VIII - DENVER
JANUARY 2009
Throughout the history of the Department of Housing & Urban Development (HUD) Assisted Housing, the housing industry has complained with some validity, that HUD has not been consistent in its treatment of Reserve for Replacement requests. This will always be somewhat of a problem because of the many different programs, managers, owners, properties, and Project Managers (PM’s) involved. Each situation is unique and some flexibility is allowed and necessary to handle situations in a responsible manner.
This statement is an attempt to define standard requirements for submission of Reserve for Replacement requests. A PM may require more documentation for some properties, but unless otherwise notified, submissions meeting the stated requirements will be considered complete. The Reserve for Replacement requirement is included in the Regulatory Agreements and/or Housing Assistance Payment (HAP) contracts in order to encourage long-term planning and upkeep of HUD Insured or Section 8 subsidized projects. The Reserve for Replacement account is intended to help pay the cost of repairs to and/or replacement of building systems and components.
As we all know, government and industry are now making a concerted effort to be Green - to help conserve energy and resources. We are soliciting your help in reporting some details of that effort at your property by using the newly revised request forms. We can then track how well the energy conscious owners and managers in our Region are moving toward this important and laudable concept. Please do help us with the small effort and minimal information you find added to this package. We all eventually benefit! And, let your PM know if you have questions.
REQUIRED DEPOSIT AND MINIMUM LEVEL
The required monthly Reserve for Replacement deposit is property specific. The initial requirement was determined, for each property, when the initial
REGION VIII - DENVER
JANUARY 2009
Throughout the history of the Department of Housing & Urban Development (HUD) Assisted Housing, the housing industry has complained with some validity, that HUD has not been consistent in its treatment of Reserve for Replacement requests. This will always be somewhat of a problem because of the many different programs, managers, owners, properties, and Project Managers (PM’s) involved. Each situation is unique and some flexibility is allowed and necessary to handle situations in a responsible manner.
This statement is an attempt to define standard requirements for submission of Reserve for Replacement requests. A PM may require more documentation for some properties, but unless otherwise notified, submissions meeting the stated requirements will be considered complete. The Reserve for Replacement requirement is included in the Regulatory Agreements and/or Housing Assistance Payment (HAP) contracts in order to encourage long-term planning and upkeep of HUD Insured or Section 8 subsidized projects. The Reserve for Replacement account is intended to help pay the cost of repairs to and/or replacement of building systems and components.
As we all know, government and industry are now making a concerted effort to be Green - to help conserve energy and resources. We are soliciting your help in reporting some details of that effort at your property by using the newly revised request forms. We can then track how well the energy conscious owners and managers in our Region are moving toward this important and laudable concept. Please do help us with the small effort and minimal information you find added to this package. We all eventually benefit! And, let your PM know if you have questions.
REQUIRED DEPOSIT AND MINIMUM LEVEL
The required monthly Reserve for Replacement deposit is property specific. The initial requirement was determined, for each property, when the initial