Housing & Urban Development (HUD)
Specialized HUD audits and reporting that keep your housing portfolio compliant, funded, and audit-ready year after year.
Overview
From our Cleveland, Ohio headquarters, Pease Bell, CPAs serves HUD-financed owners, operators, and lenders across all 50 states. HUD engagements are unforgiving: submissions run on strict deadlines, follow a specific electronic format, and are governed by the HUD Consolidated Audit Guide and Uniform Guidance. We prepare and audit the financial statements HUD requires for multifamily and Section 232 healthcare properties, file them through REAC and FASS, and support the owner and management certifications that accompany them. Whether you hold one property or a national portfolio, we help you stay audit-ready year-round and avoid the compliance findings that put financing at risk.
What we deliver
End-to-end HUD financial reporting, audit, and submission support for multifamily and healthcare properties.
HUD Financial Statement Audits
Annual audited financial statements prepared under the HUD Consolidated Audit Guide and Government Auditing Standards, with surplus-cash calculations and the schedules HUD requires for each project.
Section 232 & 223(f) Audits
Audits and financial reporting for FHA-insured Section 232 healthcare mortgages and 223(f) multifamily loans, including post-closing reporting for owners and operators of skilled nursing and assisted living.
REAC / FASS Electronic Submissions
Preparation and electronic filing of audited statements through REAC and the FASS system, formatted to HUD templates and submitted on schedule to keep your account in good standing.
LIHTC Cost Certifications
Independent cost certifications for Low-Income Housing Tax Credit projects, verifying eligible development costs and supporting the schedules your state agency and investors require.
Owner & Management Certifications
Support for the owner and management agent certifications that accompany HUD submissions, aligning your representations with the audited numbers and program requirements.
Single Audits for Federal Housing Funds
Uniform Guidance single audits for entities expending federal housing awards, covering compliance testing, the schedule of expenditures, and the reporting HUD and grantors expect.
Contact Us
Tell us about your business and a member of our team will be in touch.
Who we serve
We work with the range of owners, operators, and lenders whose financing carries HUD reporting obligations, from single-asset entities to multi-state portfolios.
- ✓Skilled nursing & assisted living operators — Section 232 healthcare properties with FHA-insured mortgages and ongoing HUD reporting.
- ✓Multifamily apartment owners — Section 223(f) and other HUD-insured or HUD-assisted multifamily housing.
- ✓LIHTC developers & sponsors — Low-Income Housing Tax Credit projects requiring cost certifications and layered compliance.
- ✓FHA-approved lenders & mortgagees — institutions subject to annual audited financial statements and recertification requirements.
- ✓Public housing authorities & nonprofits — organizations expending federal housing awards subject to Uniform Guidance single audits.
Why HUD-financed operators choose Pease Bell
Deep HUD and Section 232 experience
Our team knows the HUD Consolidated Audit Guide, REAC/FASS mechanics, and Section 232 post-closing requirements first-hand, so engagements move faster and submissions clear without avoidable findings.
Healthcare and real estate under one roof
We pair HUD expertise with dedicated skilled nursing and real estate practices, so cost reports, related-party analysis, and operational reporting are handled by people who understand your business.
Boutique attention, nationwide reach
Full service with a boutique touch: you work directly with the professionals doing the work, across all 50 states, without getting lost in a large-firm hierarchy.
Our HUD engagement approach
A structured process built around HUD’s deadlines and electronic submission requirements.
Step 1
Scope & plan
We confirm which HUD programs and audit guides apply to your properties, map filing deadlines, and identify the certifications and schedules each engagement requires before fieldwork begins.
Step 2
Audit & prepare
We perform the audit under the applicable standards, calculate surplus cash, and prepare the financial statements and supporting schedules in the exact format HUD’s electronic systems require.
Step 3
Submit & follow through
We file through REAC/FASS on schedule, support your owner and management certifications, and stay available for HUD follow-up so issues are resolved quickly and cleanly.
Housing & Urban Development Team
Featured Insights
HUD insights from our team
Practical guidance on HUD audits, Section 232 compliance, and electronic submissions.
- Section 232
How to prepare for your first HUD Section 232 auditOnboarding read for new Section 232 borrowers approaching their first audit.
- Post-closing
HUD Section 232: post-closing compliance guideOngoing reporting obligations after a Section 232 mortgage closes.
- Filing deadlines
Section 232 audited financials: the 90-day filing ruleExplains the annual filing window for Section 232 healthcare properties.
- REAC / FASS
REAC submission under the single audit thresholdHow the reporting threshold affects multifamily REAC/FASS submissions.
- Audit guide
HUD Consolidated Audit Guide: what the revision means for ownersImpact of audit guide changes on HUD-financed owners.
- LIHTC
LIHTC cost certification: what CPAs verifyWhat an independent cost certification covers for LIHTC projects.
- Healthcare
Related-party loans and advances in healthcare reportingRelated-party considerations common to Section 232 operators.
HUD audit & compliance FAQs
What is a HUD financial statement audit?
A HUD financial statement audit is an independent audit of a HUD-financed property’s annual financial statements performed under the HUD Consolidated Audit Guide and Government Auditing Standards. It includes required schedules such as the surplus-cash calculation and is submitted electronically to HUD. HUD-insured and HUD-assisted owners generally must file these audited statements each year to remain in compliance with their financing.
Who has to submit audited financial statements to HUD?
Owners and operators of HUD-insured and HUD-assisted properties generally must submit audited financial statements to HUD each year. This commonly includes Section 232 healthcare properties, Section 223(f) and other multifamily housing, and FHA-approved lenders. The specific requirement depends on your program, loan type, and level of federal awards, which we confirm during engagement scoping.
What are REAC and FASS submissions?
REAC and FASS are HUD’s electronic systems for receiving audited financial statements from housing owners and operators. The financial data must be formatted to HUD’s templates and filed through the FASS system by the applicable deadline. We prepare the statements in the required electronic format and handle the submission so filings are complete, accurate, and on time.
What is a Section 232 audit?
A Section 232 audit is the annual financial statement audit required for healthcare properties financed with an FHA-insured Section 232 mortgage, such as skilled nursing and assisted living facilities. It follows HUD’s audit guide and includes post-closing reporting obligations for owners and operators. Section 232 audits are typically due within a set window after the fiscal year end, which is why early planning matters.
How is surplus cash calculated for HUD properties?
Surplus cash is calculated as a HUD-financed property’s cash and cash-equivalent assets minus its current obligations and required reserves, following the definitions in HUD’s audit guide and regulatory agreement. It determines the funds an owner may distribute. Because the calculation drives allowable distributions and is closely reviewed, we prepare it as part of the audited financial statements.
What is a LIHTC cost certification?
A LIHTC cost certification is an independent CPA verification of the eligible development costs of a Low-Income Housing Tax Credit project. It supports the schedules required by the state housing agency and tax-credit investors and helps establish the credit basis. We verify costs against supporting documentation and prepare the certification in the format your agency and investors require.