> Operating Reserves

In 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

1. 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.
    

2. 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.

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