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Why is there a need for the Owner Corporation and or Sponsor to maintain a well-organized library of HUD project documents?

There is a saying that you know a HUD housing project is completed when the paper documents weigh as much as the constructed building. Anyone who has been through the HUD process of developing a project, completed the marketing and rent-up of tenants and has operated a completed building knows that there are many regulations and HUD procedures that have to followed. Given that each Owner corporation has signed a commitment to observe the HUD Regulatory Agreement over a period of 40 years from the date construction is completed, it is important that legal and project documents be properly labeled and preserved for persons who will need to access them over time.

The library should contain the following:

HUD correspondence to the Sponsor and Owner, to include, the fund reservation letter.

Applications submitted to HUD, such as the fund reservation, firm commitment and PRAC applications

The firm commitment issued by HUD, to include HUD's processing (Form HUD-92264 and Form HUD-92264-A), and the financial requirements for closing, including HUD's property insurance requirements

The HUD-approved Affirmative Fair Housing Marketing Plan (Form HUD-935.2). The Plan must be revised every five years following HUD approval of the initial Plan.

The HUD-approved Project Rental Assistance Contract (PRAC), closing binders, including all exhibits approved at the HUD initial and final closing. Talk to your project attorney early in the project development phase about providing the closing binders to the sponsor. The binder will include important contracts, agreements and certifications signed by the owner.

As-built plans. A set of as-built plans should be available at the project site, indicating all the changes that have occurred to the original plans during the construction period. It will be an aid to any contractor who may have to provide service to the building after the building is completed.

Warranties, guarantees, etc. These should be available to the management agent, preferably at the project site.

HUD Handbooks and applicable Notices (see examples in the Guide).

Construction records, including sponsor's requisitions, invoices presented, cancelled checks and HUD advances.

Financing statements prepared and submitted to HUD.

Required logbook and other documents prepared for marketing and rent-up.

Certifications and re-certifications for selected tenants.

The approved management plan.
REAC Inspection Reports issued by HUD.

It is also recommended that the files be clearly labeled. Create a master list of files and documents included within each. For example, the project management plan is in the application for the firm commitment. Applications to HUD usually have a table of contents and this could be incorporated as part of a master list.

Further, copying the paper files on a computer disc reduces the space needed to store the information and increases the ability to share information more easily.