40B Post-Construction
Cost Certification, Compliance Monitoring, and Affordability Monitoring
40B Cost Certification
Under the 40B Guidelines, a developer is required to submit a cost certification examined by an independent certified public accountant (“CPA”) and conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants (the “Cost Examination”). Please note that the CPA must be chosen from the CPA Prequalification List maintained by the Executive Office of Housing and Livable Communities (EOHLC).
The cost certification instructions and materials to be used by the developer and CPA for homeownership and rental projects are below.
- 40B Developer’s Certificate
- 40B General Contractor’s Certificate
- 40B Independent Accountant’s Report (Form for Developer’s CPA)
- Preparation of Cost Certification upon Completion of Homeownership 40B Project for which MassHousing Serves as Project Administrator: Guidance to Developers and Municipalities
- 40B Guidelines
- 40B Schedules
- CPA Prequalification List
The following cost certification materials are for projects not using tax credits and that applied for a Project Eligibility Letter (“PEL”) on or after March 16, 2016. If your project applied for its PEL prior to March 16, 2016, please contact MassHousing at 40BSupport@masshousing.com.
These documents are used by all state housing agencies in Massachusetts who are serving as subsidizing agencies for 40B rental projects, including the Massachusetts Department of Housing and Community Development, MassHousing, MassDevelopment and the Massachusetts Housing Partnership.
Open the “40B Cost Certification Guidance (No Tax Credits)” document first. This guidance gives a developer and their team members a step-by-step explanation of how to complete the cost certification materials.
- 40B Cost Certification Guidance (No Tax Credits)
- Attachments A-C: Cost Certification Spreadsheet (Non Tax Credit Projects)
- Attachment D: Owners Certificate
- Attachment E: Architect Certification (with RS Means Instructions)
- Exhibit 1 to Attachment E: RS Means Cost Analysis Report Form
- Attachment F: Release for CPA to Share Information
- Attachment G: General Contractor’s Certificate
- Attachment H: Form of Independent Accountant’s Report
The following cost certification materials are for projects using tax credits and that applied for a Project Eligibility Letter (“PEL”) on or after March 16, 2016. If your project applied for its PEL prior to March 16, 2016, please contact MassHousing at 40BSupport@masshousing.com.
Open the “40B Cost Certification Guidance (with Tax Credits)” document first. This guidance gives a developer and their team members a step-by-step explanation of how to complete the cost certification materials.
- 40B Cost Certification Guidance (with Tax Credits)
- Attachments A-C: Cost Certification Spreadsheet (Tax Credit Projects)
- Attachment D: Owners Certificate
- Attachment E: Architect Certification (with RS Means Instructions)
- Exhibit 1 to Attachment E: RS Means Cost Analysis Report Form
- Attachment F: Release for CPA to Share Information
- Attachment G: General Contractor’s Certificate
- Attachment H: Form of Independent Accountant’s Report
40B Compliance Monitoring: Rental
Linked below are sample 40B compliance monitoring spreadsheets for owners and management agents related to the annual compliance monitoring process. Questions related to these spreadsheets and the compliance monitoring process should be directed to 40BRentalCompliance@masshousing.com.
- 40B Affordability Compliance Monitoring Spreadsheet
- Calculation Tool: Computation of Excess Equity and Limited Dividend Distributions
- Instructions | Calculation Tool: Computation of Excess Equity and Limited Dividend Distributions
- Attachment A: Annual Limited Dividend Financial Report – CPA Certification (Calc Tool)
- Attachment B: Annual Limited Dividend Financial Report – 40B Owner’s Certificate (Calc Tool)
40B Affordability Monitoring: Homeownership
The links below provide guidance and sample materials for third-party Affordability Monitoring Agents for 40B homeownership projects for which MassHousing serves as the Subsidizing Agency.
- MassHousing 40B Affordability Monitoring Handbook
- Homebuyer Disclosure
- 40B Affordability Monitoring – Frequently Asked Questions (FAQ)
- Affordable Housing Restriction (Deed Rider)
- Affordable Housing Restriction (Amended Restated Deed Rider)
- Affordable Housing Restriction (Mortgage Form)
- 40B Subordination and Amendment Agreement
Translated homebuyer closing documents are available on the 40B Homeowner Info page.