Budget Submission Requirements

Budget Submission Requirements

Budget Submission Requirements For DCHFA Financed Multifamily Projects

1) Budget Submission

A Project's Annual Budget is due on November 1st of each year. The budget shall be prepared according to the following requirements:

  • Budgeted expenses shall not exceed projected income. Unless the project's condition requires the Owner to contribute funds to cover operating deficits, the Owner shall not submit a deficit budget.
  • Each line item of the budget must be compared to prior two years' actual income and expenses.
  • A narrative shall be submitted to explain each line of the proposed budget, particularly for items that will have more than 5% change from the prior year's actual amounts.

Click here to download the required DCHFA budget format sample.

2) HUD Chart of Accounts

DCHFA financed multifamily projects are required to use HUD Chart of Accounts in annual budget submission.

The major categories of the HUD Chart of Accounts include:

A. 1000 Asset Accounts
1100 Current Assets
1200 Prepaid Expenses
1300 Funded Reserves
1400 Fixed Assets

B. 2000 Liability Accounts
2100 Current Liabilities
2200 Prepaid Revenues
2300 Long Term Liabilities

C. 3000 Equity Accounts
3100 Owner Equity
3200 Earnings

D. 4000 Valuation Accounts
4100 Accumulated Depreciation
4200 Other Reserves

E. 5000 Revenue Accounts
5100 Rent Revenue
5200 Vacancies
5300 Elderly and Congregate Services Revenue
5400 Financial Revenue
5900 Other Revenue

F. 6000 Project Expense Accounts
6200/6300 Administrative Expenses
6400 Utilities Expenses
6500 Operating and Maintenance Expenses
6600 Depreciation Expenses
6700 Taxes and Insurance
6800 Financial Expenses
6900 Elderly and Congregate Care Expenses

G. 7000 Corporate and Mortgagor Expenses

Refer to Chapter 4 of the HUD Handbook 4370.2 Rev-1, Financial Operations and Accounting Procedures for Insured Projects.