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Asset Management

Capacity Scorecard Overall Performance Questions

Capacity Scorecard Overall Performance Questions

Below are examples of how KHC staff will approach the evaluation of an Entity or Development Team member(s). The categories and point deductions are provided as examples for how a deduction in capacity is determined. Please be advised that the list is not all-inclusive. KHC typically looks back for a period of 3 years, from the date of application submission, for relevant capacity-related issues. However, KHC reserves the right to look back further, depending of the significance of the past capacity violation. KHC, in its sole discretion, will determine what warrants a capacity deductions and how many points should be deducted for each violation.

Please note:  Sample score/deductions will be highlighted in red.

Capacity Scorecard Overall Performance Questions 

Score / Deduction

1

If previous KHC funding was for the construction or rehabilitation of units, were there any issues with construction procedure or quality as defined in KHC program guidelines and standards for construction?

 

 

a.

Early starts without KHC notification and approval.

-2

 

b.

Lease-up, occupancy or sale of units without KHC approval or inspection.

-2

 

c.

Continual / Frequent code violations identified during inspections.

-2

 

d.

Non-emergency (Non -Life Threating or Health and Safety issues) change orders were not submitted or did not receive KHC approval prior to change.

-1

 

e.

Final product does not match application or final plans and specs as approved by KHC. Including, but not limited to KHC Standards violations resulting in waiver to avoid correction.

-2

 

f.

Construction oversight deficiencies by developer/owner.

-2

 

 

 

 

2

Has the Entity or Development Team member(s) been cooperative with KHC compliance and/or asset management requirements?

 

 

a.

Failure to respond to KHC requests for monitoring reviews and/or rescheduling of review more than 2 times.

-2

 

b.

Removing of pledged amenity without prior approval from KHC.

-2

 

c.

Repeated failure to respond to requests for information and/or submission of incorrect information.  Examples include quarterly and annual financials, Annual Performance Reports, compliance documentation, etc. 

-1

 

d.

Multiple occurrences of 30 days or more delinquent on active KHC affordable housing loans.  This included escrow payments and late fees.

-2

 

e.

Not keeping TDCS updated, including property contact information.  Substantial events, such as move-ins, move-outs or recertifications should be entered within 30 days of the event.

-2

 

f.

Failure to notify KHC of sale of property or replacement of general or limited partner for multifamily properties.

-2

3

Has the Entity or Development Team member(s) demonstrated a continual pattern of project management issues during the administration of KHC affordable housing projects or programs?

 

 

a.

Delays in the progression of program/project throughout the administration and development stages, including late submission of documents.

-1

 

b.

Project not placed in service/closed out by the applicable deadline.

-2

 

c.

Draw request submission being returned due to insufficient paperwork or other errors.

-1

 

d.

Unauthorized changes to program design, development team members, or budgets after final approval.

-2

 

e.

Late submission of technical submission items or legal documentation.

-1

 

f.

Changes in LURA, agreements, or legal documents not consistent with final approved underwriting/budgets, without prior approval from KHC.

-2

 

g.

Loan and/or equity closing without KHC approval. (Multifamily Projects Only)

-2

 

h.

Multiple instances of incurring of fees for waivers, deadline extensions, swap of Housing Credits, late submissions, 8609 reissuances, reinspection, etc.  (Multifamily Projects Only)

-2

 

i.

Exercising the cure period on multiple applications in the same funding round, or on 1 or more applications in consecutive funding rounds.

-2

 

j.

Failure to comply with cross-cutting federal regulations, as applicable.

-2

4

Has the Entity or Development Team member (s) returned funds or had funds recaptured as a result of inadequate program administration or compliance finding(s)?

-2

5

 Has the Entity or Development Team member(s) returned or had recaptured funds that resulted in a significant loss or penalty to KHC?

-2