Contractor agrees to provide to California Tax Credit Allocation Committee (CTCAC) asset management services as described herein: Asset management services to oversee a Portfolio of 49 Tax Credit Projects that received an award of Tax Credit Assistance Program (TCAP) or Section 1602 (Exchange) funds to assist in the development of affordable rental housing. The American Recovery and Reinvestment Act (ARRA) requires that TCAP grantees perform asset management functions for TCAP projects “to ensure compliance with Section 42 or the IRC of 1986, and the long-term viability of buildings funded by TCAP. The services shall be performed at offices of the Contractor and at various tax credit property sites in California. Asset Management monitoring begins after a project has been placed-in-service. The services shall be provided during business hours (8:00 a.m. – 5:00 p.m. PT, Monday through Friday, except holidays). These services include the following: • Review and assessment of project’s occupancy rates and vacancy turnover performance on a quarterly basis. Although, if high vacancy is noted, then TCAC may require reviews and assessments to be performed more often. • Annual review and approval of project’s annual operating budget to determine if tax credit projects are financially feasible and generate positive cash flow. Annual operating budgets are received in December and review/approval is completed within 30 days of receipt. • Annual review and approval of project’s annual audited financial statements consisting of Balance Sheet, Statement of Cash flows, and Income Statement to determine if tax credit projects are financially feasible and generate positive cash flow. Audited financial statements are received in June of each year and review/approval is completed within 30 days of receipt.
