Q: My property
has multiple agency financing. How do I know which agency (MHDC, HUD, or
Rural Development) must approve my request?
The grid below explains which agency is
responsible for processing the property’s reserve for replacement request.
Q: How do I submit
my reserve for replacement request? (10/17/07)
A: Until December 31, 2007 properties should
continue to submit their reserve for replacement requests by mailing the
request form to MHDC with all the required supporting documentation.
Effective January 1, 2008, all reserve for replacement requests will
be required to be submitted on-line thru MHDC’s on-line system. Please log
amrs.mhdc.com to submit your reserve for replacement request. The user
name and password are the same as the user name and password used to access
the budget and financial statement systems.
MHDC will not accept mailed replacement for reserve requests unless
your property has 12 units or less.
Q: When can I
submit my reserve for replacement requests?
Reserve for replacement requests may be submitted
anytime. It is helpful if the property submits several requests at once.
MHDC will not process any reserve for replacement request when the MHDC
receipt date is 1 year or older than the invoice date.
Q: What is the
difference between the Reimbursement Request and Advance Review boxes on the
Reserve for Replacement Request form? (10/17/07)
A Reimbursement Request is a request where work
has been already completed at the property, and the property would like
reimbursement for the amount they have already paid or would like MHDC to
pay the vendor directly. A property is taking a chance that the replacement
item may or may not be covered. All reimbursement requests must include
copies of invoices, cancelled checks, pictures, and MHDC inspection if
An advance review is a
request where the property is asking for MHDC approval prior to the
work being completed. MHDC requires 3 bids to be submitted with the
request, and will determine if the repairs are eligible replacement cost
expenditures and if the balance of the property’s account is sufficient to
grant the request. If MHDC approves the advance, a check will be mailed
directly to the vendor upon evidence of completion.
Note: 3 bids are not necessary if costs less
Q: What are some
reasons for why my reserve for replacement request may be denied/delayed?
A: A request may be denied/delayed for but not limited to the following reasons:
Q: Can MHDC pay
the vendor directly? (10/17/07)
Yes – The property must indicate on the Reserve
for Replacement form that MHDC is to pay the vendor directly. The property
must make sure the name, address, and phone number for the company providing
the work is clearly provided. Please do not assume this information can be
found on the invoice.
Q: When can I
expect my request to be processed?
Reserve for Replacement requests are to be
processed within 20 days from the date MHDC receives the property’s
request. This turn around time should be communicated to your vendor. MHDC
processes requests in the order they are received. Turn around times should
be considered in determining how long the property holds the request before
submitting it to MHDC.
MHDC require inspections to be performed on replacement reserve requests?
Q: Does MHDC require lien waivers to be submitted for funds paid directly to vendors? (10/17/07)
A: Yes – Lien waivers are required, but MHDC has eliminated the lien waiver form that was required to be sent back to MHDC. Now, MHDC’s Loan Servicing Department stamps a lien waiver on the back of the vendor’s check, and the vendor must fill out the lien waiver prior to deposit.
Will our property’s annual Replacement Reserve payment be increased 3%
Yes – Beginning in 2007 and every year thereafter,
MHDC will increase annual replacement reserve deposits by 3%. All
properties need to increase annual replacement reserve deposits 3% on their
submitted budget. Replacement Reserves for properties that have 12 units or
less will be automatically increased 3% during MHDC’s escrow analysis
Can I use reserve for replacement funds to cover the difference if my
insurance claim check does not cover the entire replaced item?
A: Yes – However, the property must submit a Reserve
for Replacement request form before payment can be made. MHDC does not
assume that the property wants to utilize reserve for replacement funds when
Q: What does “Non-Compliance Status”