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The
DEC's Operations Division, working with the DEC's five Satellite
Offices, manages the day-to-day recovery and enforcement strategies
for selected high-risk properties. The Division works with owners
to achieve compliance. The Division is responsible for policy development
of enforcement strategies for the DEC's Satellite Offices and the
development and resolution of its own enforcement cases.
The
DEC's Satellite Offices focus on properties with physical and financial
deficiencies that are referred from HUD's Office of Multifamily
Housing and HUD's Real Estate Assessment Center (REAC).
Referrals
The
majority of the referrals that the Operations Division and Satellite
Offices receive are from REAC. We do, however, receive elective
and emergency referrals from HUD's Office of Multifamily Housing.
Physical
Referrals
REAC
assesses the physical condition of HUD's Multifamily Housing inventory. Properties
with a REAC inspection score of 30 points or less are automatically
referred to the DEC. Properties scoring between 31-59 may be referred
electively.
Financial
Referrals
In
addition to referrals of properties with physical deficiencies,
we also handle financial referrals, where the annual financial statements
(AFS) reflect compliance discrepancies. AFS statements are submitted
electronically to REAC through the Financial Assessment Subsystem
(FASS). Some of these submissions are handled routinely by multifamily
housing staff, while others are specially routed to the DEC for
evaluation and appropriate action.
Non-Filer
Referrals
Owners
who do not file timely annual financial statements with REAC are
referred to the DEC. The DEC's primary goal has been to obtain owner
compliance in filing the required statements. However, the DEC has
authority to impose civil money penalties (CMPs) against owners
of HUD-insured and assisted multifamily properties who do not comply.
Housing
Elective Referrals
In
some instances, irrespective of the REAC physical inspection scores
or the results of the AFS review, HUD's Multifamily Hub Directors
may refer projects to the DEC for further evaluation. These include
situations where an owner has violated the terms of a Use Agreement
or other agreements with the Department.
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