1. REAC
  2. Financial Assessment of FHA Housing (FASS-FHA)

Financial Assessment of FHA Housing (FASS-FHA)

Over 26,000 Multifamily Housing and Office of Residential Care Facilities participants are required to submit annual electronic financial statement data to HUD. HUD requires this data in order to determine the financial health of properties in the various portfolios, protect the Department from financial loss, ensure proper use of revenues and Federal subsidies, and assess owner compliance with the various Business Agreements such as Regulatory Agreements, Housing Assistance Payment Contracts, Use Agreements, and Charters.

View all highlights and announcements: complete listing of past and current highlighted information in FASS-FHA affecting compliance and financial reporting to HUD by FHA program participants.

System Information

Submission Tools and Other Resources

Useful Links

About FASS-FHA

Quality Assurance Operations (QASS)

To ensure that financial information submitted to the Real Estate Assessment Center is reliable, staff of the Quality Assurance Operations Division (QASS) conduct quality control reviews (QCRs) of independent public accounting (IPA) firms. Audits performed by IPA firms are often considered HUD’s “first line of defense” when assessing the financial condition of a public housing agency (PHA), tribally-designated housing entity (TDHE), or multifamily ownership entity. Ensuring the accuracy of financial data submitted to the REAC is critical to HUD’s mission because such data are used to score housing agencies and identify factors preventing the successful and efficient delivery of affordable housing.

In addition, QASS’s staff of experienced auditors and certified public accountants conduct financial assessments of PHAs and TDHEs, and perform a wide variety of ad hoc financial reviews, both internal and external to the Department. These assessments seek to pinpoint the causes of financial irregularities, identify risks in new and ongoing programs, and provide realistic recommendations for mitigating financial distress and strengthening internal controls.

Helpful Tools and Links

Enforcement Actions Against IPAs

The Department continues to aggressively pursue action against auditors who have egregiously violated professional standards and HUD requirements. Actions taken include:

  • State of Kansas fines and revokes license to practice, and the Departmental Enforcement Center issues indefinite Limited Denial of Participation for Fredonia, KS CPA and his firm.
  • State of Kansas revokes license to practice, and the Departmental Enforcement Center issues a three-year debarment for Holton, KS CPA and his firm.
  • The State of Mississippi and State of Florida revoke the public accounting licenses of a Gulf Breeze, FL, CPA.
  • Based, in part, on failure to produce records for a Quality Control Review, the State of Missouri and State of Mississippi revoke a St. Louis, MO, CPA’s public accounting licenses.

Financial Assessment of Multifamily Housing

Federal Register Notices, Rules, and Regulations

  • Uniform Financial Reporting Standards effective April 20,2000, amends filing requirements and makes certain technical corrections to its regulations. More (01/05/04)
  • Deregulation for Small Public Housing Agencies; Final Rule, 24 CFR Parts 902, 903 and 985, 06/24/03
  • Uniform Financial Reporting Standards (UFRS) for HUD Housing Programs Final Rule: 24 CFR Part 5, et al. 9/1/98 (13pgs/82k) (Note: This document is also listed in the PHAS section below.)

Handbooks, Guidance, and Instruction

  • Office of Multifamily Housing clarification of the definition of surplus cash contained in the 2011 HUD Regulatory Agreement. More...(01/27/2014)
  • Substandard Government Audits: Are They Worth the Cost? More ...(02/11/04)
  • MF-FASS Audited A-133 Threshold Reporting Requirements Change The Office of Management and Budget sets new $500,000 reporting limit for non-profit organizations. More...(02/11/04)
  • Limited distribution projects converting to Mark-to-Market restructuring. More... (02/11/04)
  • 7.0 Industry User Guide for the Financial Assessment Subsystem-Multifamily Housing (FASSUB) (06/22/07)
  • Summary of Financial Reporting and Auditing Guidance for HUD Multifamily Program Participants and Independent Auditors
  • Multifamily Coordinator Quick Tips
  • Addendum to the Data Standardization Results for the Financial Assessment Subsystem 12/31/98 (31pgs/154k)
  • Multifamily Financial Reporting Revisions Updated 1/26/00 (34pgs/138k)
  • Guidelines on Reporting and Attestation Requirements of Uniform Financial Reporting Standards (UFRS) as of March 2001 (46pgs/842k) This guide was updated by REAC with the assistance of Pricewaterhouse Coopers, LLP and the American Institute of Certified Public Accountants (AICPA). It provides PHAs and independent auditors with updated guidance on: (1) Statement on Auditing Standards (SAS) #29 and the audited Financial Data Schedule and (2) an agreed-upon-procedure (in accordance with Statement on Standards for Attestation Engagements #10) comparing a PHA's hard copy audit report to the audited electronic submission prepared for REAC. The SAS #29 and the SSAE#10 documents can be obtained from the AICPA. These are not HUD documents.

Letters and Directives

  • REAC Letter to Multifamily Project Owner 1/12/99 (4pgs/16k)