Even when you're an experienced multifamily owner/manager, the prospect of an MOR can be daunting. For newbies to PBRA, it's even more so! Getting audited is never fun but being prepared before it happens will help you and your staff feel more comfortable and increase your odds of a successful outcome.
- Tip #1: Audit your own files before HUD does
Try to run a review of your files that's as close to an actual MOR as possible. Are you complying with all HUD requirements? You'll need to check move-ins, interims, annuals, gross rent changes, and initial certifications conducted in the past 12 months. We suggest using the Form HUD 9834 Addendum A when self-auditing. This is the form HUD uses when auditing and allows you to know if you are falling short on any HUD requirements. Focus your internal quality control on files that are most likely to have mistakes: most common files an auditor will chose include, large assets, large medical deductions, and multiple income sources, as well as your most recent move-in.
- Tip #2: Do a companywide forms audit
In addition to auditing your own files, this is the best time to do a companywide audit of your forms to ensure they are up-to-date. You should make sure all the information is still correct and nothing is outdated. If you find anything that's incorrect, update your forms to meet current standards and practices. Not only will this help keep the company forms updated, but it will also make certain the whole company is ready when an MOR comes.
- Tip #3: Do a physical assessment of your properties
After doing an audit of your paperwork, it is important to get an inspector to evaluate the properties. During this time, check to see if there are any damages to the sites. If there are, make the necessary arrangements to get them fixed before the MOR. This will make sure the properties are up to code and help the audit process go more smoothly. (If you need help looking for an inspector, we do offer UPCS inspections.)
With a bit of preparation, you can get through an MOR with flying colors. Just make sure to review your files, forms, and properties before your MOR and make any changes or updates to items that need to be fixed.
Not sure if you're compliant? We can help! We offer on- and off-site MOR readiness reviews and file corrections and UPCS inspections. Our new class, MOR Prep, is also an excellent option for ensuring you understand the MOR process and how to navigate it successfully.