ANNUAL AUDITED FINANCIAL STATEMENT SUBMITTAL & RESIDUAL RECEIPTS LOAN PAYMENT GUIDELINESBorrowers of residual receipt loans are required to submit annual audited financial statements (AFS) and loan payments by the payment date indicated in the loan agreement. AFS may be emailed to HCIDLA.RR@lacity.org or HCIDLA.CRA.RR@lacity.org. The audited financial statements should clearly describe the actual paid versus accrued amount of fees, debt service and details of deposits and withdrawals from the operating and replacement reserves of the multi-family property with a City residual receipts loan. The total amount of the deferred developer fee, the total amount paid and the amount outstanding should be described in a separate note section entitled “Deferred Developer Fee.” Click on this link to access an example of the separate note section. Borrowers will also need to complete and submit a Calculation of Residual Receipts using data from the annual audited financial statements for each respective project. HCIDLA may make any necessary adjustments to the Calculation of Residual Receipts before issuing a final invoice for any underpayments, or a final credit for any overpayments. Borrowers may authorize designated signatories to make written requests, agreements, amendments or other transactions for your loans. Borrowers may complete and submit the HCIDLA Authorized Signature Card to make sure signatories are current.
WITHDRAWAL REQUESTSIt is HCIDLA policy that borrowers maintain adequate replacement and operating reserves. Withdrawal of these funds typically requires HCIDLA’s Loan Portfolio Unit’s written approval. Borrowers must submit a formal written request to HCIDLA inclusive of the following:
- Signed and dated request letter stating which project (project name/loan no./project no.) for which the request is being made, the nature of need, the specific amount to be withdrawn and from which reserve, and which bid is being selected and why (if applicable);
- Most recent bank statements for both the operating and replacement reserve accounts reflecting the current balance; and
- All pertinent supporting documentation, i.e.. copies of three formal bids, copies of invoices with corresponding checks, etc.
HCIDLA AUTHORIZED SIGNATURE CARD
Borrowers may authorize designated signatories to make written requests, agreements, amendments or other transactions for your loans. Borrowers may complete and submit the HCIDLA Authorized Signature Card to make sure signatories are current.