Program Compliance Accounting
> Operating Reserves
accordance with MHDC’s Operating Reserve Agreement, MHDC must approve all
releases from the property’s Operating Reserve account which is maintained
by MHDC. Operating Reserve Agreements are required by MHDC to assist the
property in meeting their operating expenses over the life of the loan.
New Operating Reserve Policy Effective May 1, 2011
All Operating Reserve requests are
required to be submitted online through MHDC’s Asset Management
Reporting System (AMRS)
https://amrs.mhdc.com. A user name and password is required to
access this system. MHDC will not accept mailed/e-mailed
operating reserve requests unless the property has 12 units or less.
Operating Reserves accounts are used to
cover operational expenses that cannot be paid for by the property.
Properties must be able to show need (i.e. operating shortfall) before
operating reserves can be used. Properties will need to submit a request
identifying the type of expenses needing to be covered, documentation of
expenses, (i.e. invoices and check stubs,) and a year to-date internal
balance sheet and income statement before a request can be approved.