MASSACHUSETTS HOUSING INVESTMENT …

1 MASSACHUSETTS HOUSING INVESTMENT corporation LOW INCOME HOUSING TAX CREDIT TAX RETURN & AUDIT PREPARATION GUIDE FOR THE YEAR ENDED 12/31/11 Prepared by: MASSACHUSETTS HOUSING INVESTMENT CORP. 70 Federal Street Boston, MA 02110-1906 (617) 850-1000 1 MASSACHUSETTS HOUSING INVESTMENT corporation TABLE OF CONTENTS FINANCIAL STATEMENT AUDITS Tab 1 Audited Financial Statement submissions and deadlines MHIC- Asset Management Staff Contact List Acronyms Tax ID numbers of each of the MHEF funds Information required for the Audited Financial Statements Preferred Balance Sheet, Income Statement & Cash Flow Formats INFORMATION FOR LOWER TIER AUDITOR Tab 2 Sample Independence Letter (Exhibit A)

2 Work papers and documents required for preliminary draft financial statements and tax returns (Exhibit B) Book to Tax Reconciliation (Exhibit C) Rent up schedules (stabilized and first year projects) TAX RETURN INFORMATION Tab 3 Tax return and schedule K-1 submissions and deadlines Information required for the tax returns and schedule K-1 Tax Return Prep Guide for Operating Partnerships including 704 (b) minimum gain discussion and calculation FORMS and SET UP INFORMATION Tab 4 General First Year Elections Form 1065 IRS Form 8586 Version IRS Form 8609 Version IRS Schedule A (Form 8609) Version IRS Form 8611 and Instructions 2 TAB 1 3 Audited Financial Statements Submission Deadlines: Draft Copy Thursday March 1, 2012 Final Copy-The later of Thursday March 15, 2012 Or Within eight (8) calendar days of the date MHIC issues its Go final letter.

3 Remit Audit information as follows: AUDITS DRAFT and FINAL audits must be received via E-mail. Hard copy documents are no longer accepted. E mail: Gayle Simmons MASSACHUSETTS HOUSING INVESTMENT corporation 70 Federal Street, 6th floor Boston, MA 02110-1906 Phone number: (617) 850-1003 Fax number: (617) 850-1103 Final audits must include a signed original Independence letter that are dated on or after the date of the auditor s report and must be submitted with the final reporting package (see format in Tab 2, exhibit A). Final audits should be sent as a PDF file to MHIC at the email address above. MHIC will forward the audits to the appropriate upper tier auditor. 4 Asset Management Department Contact List Name Title Email Phone Richard G. Becker Director of Asset Management (617) 850-1007 Scott Backman Senior Asset Management Officer (617) 850-1054 Melissa J.

4 Sheeler Senior Asset Management Officer (617) 850-1060 Ellen M. Caracciolo Asset Management Officer (617) 850-1058 Rudolph R. Russell Asset Management Officer (617) 850-1023 Gayle G. Simmons Asset Management Officer (617) 850-1003 Henry A. Terrones Asset Management Officer (617) 850-1050 Kimberly Williams Asset Management Analyst (617) 850-1041 5 HELPFUL ACRONYMS ADA Americans with Disabilities Act AFR Applicable Federal Rate AHT Affordable HOUSING Trust AUL Activity & Use Limitation (form 1075) AUR Available Unit Rule BIN Building Identification Number BOY Beginning of Year CDBG Community Development Block Grant CEDAC Community Economic Development Assistance Corp. CHDO Community HOUSING Development Organization CY Current Year DHCD Department of HOUSING & Community Development DND Department of Neighborhood Development (Boston) EOCD Executive Office of Community Development (Now DHCD) EOY End of Year FASB Financial Accounting Standards Board FMR Fair Market Rent FNMA Federal National Mortgage Association (FANNIE MAE) FREDDIE MAC Federal Home Loan Mortgage Corp.

5 GAAP Generally Accepted Accounting Principles GAFC Group Adult Foster Care HAP HOUSING Assistance Payment (HUD Section 8 program) HFA HOUSING Finance Agency HH High HOME HIF HOUSING Innovation Funds HOME HOUSING Development & Loan Program HQS HOUSING Quality Standards HSF HOUSING Stabilization Fund HUD Department of HOUSING and Urban Development LH Low HOME LIHTC Low Income HOUSING Tax Credit LISC Local Initiative Support Corp. LURA Land Use Restriction Agreement MDFA Mass. Development Finance Agency MEFA Mass. Health & Educational Facilities Agency MHFA Mass HOUSING (formerly Mass. HOUSING Finance Agency) MHP MASSACHUSETTS HOUSING Partnership MRVP MASSACHUSETTS Rental Voucher Program MSA Minimum Set Aside MSA/PMSA Metropolitan Statistical Area/Primary Metropolitan Statistical Area NMTC New Markets Tax Credit Program PBA Project Based Assistance PHA Public HOUSING Authority PJ Participating Jurisdiction PY Prior Year QBTS Qualified Basis Tracking Sheet QCT Qualified Census Tract RA Reasonable Accommodations RFP Request for Proposal SAS Statement on Auditing Standards SRO Single Room Occupancy SSI Supplemental Security Income TANF Temporary Aid to Needy Families T CAP Tax Credit Assistance Program TCEX Tax Credit Exchange

6 Program TIC Tenant Income Certification 8609 (IRS Form) LIHTC Allocation Certification 8611 (IRS Form) LIHTC Agencies Report of Recapture of Low-Income HOUSING Credit 8823 (IRS Form) LIHTC Agencies Report of Noncompliance or Building Disposition 6 Low Income HOUSING Tax Credit (LIHTC) Developments by Fund MHEF 1993-1994 LP MHEF 1997 LP Upper tier accountant Daniel Dennis & Comp. Upper tier accountant Daniel Dennis & Comp. Tax ID Number 04-3223579 Tax ID Number 04-3372683 Project Name Asset Manager Project Name Asset Manager Nueva Vida Apartments Ellen Caracciolo Bristol - Bedford Village Scott Backman South Canal Ellen Caracciolo Bristol - Blackstone Scott Backman Symphony Apartments Ellen Caracciolo Bristol - Tecumseh Scott Backman Bristol - Third Street Scott Backman Bristol - Wade John Scott Backman Chestnut Square Melissa Sheeler Hampden Affordable Henry Terrones Kent Street Rudolph Russell Perry Street Melissa Sheeler Prospect Estates Melissa Sheeler Quadrangle Court Ellen Caracciolo Voces de Esperanza Rudolph Russell MHEF 1995 LP MHEF 1998 LP Upper tier accountant Daniel Dennis & Comp.

7 Upper tier accountant Daniel Dennis & Comp. Tax ID Number 04-3251009 Tax ID Number 04-3419429 Project Name Asset Manager Project Name Asset Manager Bow Street Rudolph Russell Academy Homes Gayle Simmons Cohen Florence Levine Ellen Caracciolo Austin Court Scott Backman Gardner Crawford Thane Gayle Simmons Beacon/Oread Gayle Simmons Huntington YMCA Henry Terrones Dudley Terrace Rudolph Russell Infill 2 Henry Terrones Grant Manor Henry Terrones Memorial Parish House Ellen Caracciolo Harborlight House Melissa Sheeler New Port Antonio Rudy Russell Mandela Homes Gayle Simmons Sargent Prince Henry Terrones Mohawk Forest Melissa Sheeler Uphams Corner Apartments Rudolph Russell

8 Neighborhood Homes Rudolph Russell Wamsutta Scott Backman MHEF 1996 LP Wilder Garden Apartments Rudolph Russell Upper tier accountant Daniel Dennis & Comp. Tax ID Number 04-3307743 MHEF 1999 LP Project Name Asset Manager Upper tier accountant Daniel Dennis & Comp. Brook Avenue Cooperative Melissa Sheeler Tax ID Number 04-3469910 Cabot Street House Gayle Simmons Project Name Asset Manager Cabotville Common Henry Terrones 71 Westland Ave. II Kimberly Williams Ceylon Field Rudolph Russell Auburn Court II Ellen Caracciolo Chestnut Marlboro Grove Gayle Simmons BCN Properties Kimberly Williams Cleaves Court Gayle Simmons Countryside Village Henry Terrones Freeland Apartments Gayle Simmons Hampshire Pine Ellen Caracciolo New South Street Scott Backman Holborn Terrace Gayle Simmons Savin-Creston Gayle Simmons Kalife Apartments Scott Backman Triangle Project Melissa Sheeler Mahaiwe Theatre Gayle Simmons Warren Apartments Rudolph Russell Maple Properties Gayle Simmons Westminster Court Gayle Simmons Pine Homes Rudy Russell Windfield Senior Estates Melissa Sheeler 7

9 Low Income HOUSING Tax Credit (LIHTC) Developments by Fund MHEF 2000 LLC MHEF X LLC Upper tier accountant Daniel Dennis & Comp. Upper tier accountant Daniel Dennis & Comp. Tax ID Number 04-3526036 Tax ID Number 13-4266969 Project Name Asset Manager Project Name Asset Manager Crocker Cutlery Henry Terrones 147 Essex Ave Melissa Sheeler Hano Homes Henry Terrones Acushnet Commons Kimberly Williams John F. Kennedy Apts. Scott Backman Bixby Brockton Apartments Melissa Sheeler Middlesex Street Melissa Sheeler Capitol Square Apartments Gayle Simmons Northeast Apartments Ellen Caracciolo Meadow Brook Scott Backman Pondview Apartments Ellen Caracciolo Moltenbrey Henry Terrones South End Apartments Ellen Caracciolo Morville House Apartments Melissa Sheeler Squirrel Brand Apartments Rudolph Russell Plantation Apartments Scott Backman Viviendas Apartments Ellen Caracciolo YWCA Fina House Melissa Sheeler Wardman Apartments Gayle Simmons MHEF XI Upper tier accountant Kevin P.

10 Martin & Associates MHEF 2001 LLC Tax ID Number 20-2095810 Upper tier accountant Kevin P. Martin & Associates Project Name Asset Manager Tax ID Number-MHEF 2001 04-3572225 Brunswick-Holborn II LP Gayle Simmons Tax ID Number-MHEF 2001 series F 04-3584960 Columbia Wood Two LP Gayle Simmons Tax ID Number-MHEF 2001 series M 04-3584962 Egleston Crossing Gayle Simmons Project Name Asset Manager Trolley Square Ellen Caracciolo Abington Commons Rudy Russell Florence Chafetz Ellen Caracciolo MHEF XII Howard Dacia Homes Henry Terrones Upper tier accountant Kevin P. Martin & Associates Pittsfield Family YMCA Gayle Simmons Tax ID Number 20-4394414 Provincetown Community HOUSING Melissa Sheeler Project Name Asset Manager Puerta de la Esperanza Ellen Caracciolo Dudley Village North Gayle Simmons Sister Clara Muhammed Kimberly Williams Lazarus Hope LLC Melissa Sheeler State Street Apartments Scott Backman The TILL Building Melissa Sheeler Susan Bailis Assisted Living Melissa Sheeler Long Glen Scott Backman Victoria Apartments Ellen Caracciolo Walnut House Rudy Russell Windfield Family Apartments Melissa Sheeler MHEF XIII MHEF 2002 LLC Upper tier accountant Kevin P.