HUD typically conducts two kinds of monitoring reviews of nonprofit agencies participating in the FHA Nonprofit Direct Sales program:
(1) field reviews and (2) annual report reviews.
Periodically, FHA will perform field reviews of nonprofit agencies as part of its ongoing quality control activities. Therefore, FHA may contact a nonprofit agency and request the following information, which may include, but is not limited to:
- Documentation regarding the nonprofit agency's progress in implementing its affordable housing program
- Access to properties which are under development, resold or leased or otherwise a part of the nonprofit agency's affordable housing program
- Access to the nonprofits office(s) to determine compliance with FHA ML#2002-01 "Adequate Facilities".
All requests by FHA will be made in writing and provide the nonprofit agency with the time to accommodate such requests. Failure to respond to a review request may result in removal from FHA's nonprofit roster. For further information on the nonprofit roster, due-process removal and re-instatement procedures, please see: 24 CFR Part 200 "Nonprofit Organization Participation in Certain FHA Single Family Activities; Placement and Removal Procedures; Final Rule".
Annual Report Reviews
Nonprofit agencies that have purchased discounted properties under the Direct Sales Program must submit a report to the applicable FHA Homeownership Center providing information about their program accomplishments over the past calendar year by February 1 of the following year. If the report is not received by February 1, FHA may remove the nonprofit agency from its roster.
If the nonprofit agency has purchased no discounted properties, it still must file a "negative report". For more information please see See: ML#2000-08 Attachment 3 and Attachment 5.