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 rental projects are below.

Non-tax credit projects

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 MHP's Director of Business Development Nancy McCafferty by email.

These documents are used by all state housing agencies in Massachusetts who are serving as subsidizing agencies for 40B rental projects, including EOHLC, MHP, MassHousing, and MassDevelopment.

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

Tax credit projects

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 MHP's Director of Business Development Nancy McCafferty by email.

These documents are used by all state housing agencies in Massachusetts who are serving as subsidizing agencies for 40B rental projects, including EOHLC, MHP, MassHousing, and MassDevelopment.

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 Limited Dividend 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 MHP’s Senior Compliance & Portfolio Manager, Carla Cabral, by email.

• 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)