|Missouri Housing Development Commission|
Program Compliance Accounting
The Importance of Budgeting
MHDC requires projects over 12 units (excluding projects mostly covered by a HAP contract) to submit an annual budget to MHDC by November 15. MHDC believes budgeting is a critical part of the development’s financial success.
Good budgeting requires a realistic, itemized operating income and expense projection. An inaccurate projection of operating income and expenses is a significant cause in the financial underperformance of some multifamily rental properties. MHDC will assess the reasonableness of all operating costs in evaluating the financial feasibility of various affordable housing properties. Establishing and maintaining a database of the actual operating costs of affordable housing developments is an effective way for MHDC to access and analyze comparative property operating cost data. This comparative data will assist in MHDC’s review of each property’s projections for reasonableness.
*Note: Office 2002 (XP)
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