Independent Audit Services for LIHTC Properties

Description: Issue Date: October 30, 2026 Questions Due: November 12, 2026 Proposal Deadline: November 20, 2026 Anticipated Contract Start: January 1, 2027 1. Purpose Keene Housing (KH) invites proposals from qualified independent Certified Public Accounting (CPA) firms to provide annual financial statement audit services for the Low-Income Housing Tax Credit (LIHTC) properties and ownership entities listed in Exhibit A. The engagement is intended to support accurate financial reporting, compliance with applicable tax-credit and financing requirements, and timely reporting to investors, lenders, regulatory agencies, and other stakeholders. 2. Background and Properties Covered Keene Housing (KH) is a high performing public housing agency known for its strong and innovative management, maintenance, and capital programs. KH is participating in the U.S. Department of Housing and Urban Development's (HUD's) Moving to Work Deregulation Demonstration Program (MTW). The MTW agreement with HUD has been extended to 2038 and provides KH with authorization to develop policies that are outside the limitation of certain HUD regulations and provisions of the H.S. Housing Act of 1937. KH's programs include 649 Housing Choice Vouchers administered under the MTW program and more than 200 vouchers through a variety of special HUD programs including but not limited to the Non-Elderly Disabled, Mainstream, and Foster Youth to Independence programs. KH owns or manages a diverse affordable housing portfolio totaling over 650 units which includes Low-Income Housing Tax Credit (LIHTC), Project Based Section 8, Rural Development 515 and Project Based Voucher units. KH does not own or manage any public housing units. KH is governed by a five-member Board of Commissioners appointed by the Keene City Council. One member of the Commissioners is a KH resident. The Executive Director reports to the Board of Commissioners. Certain developments covered by this RFP use LIHTCs together with other public or private financing. Ownership may be held by a limited partnership, limited liability company, or other affiliated entity. Exhibit A identifies the entities, fiscal year-ends, audit due dates, LIHTC or multifamily designation, unit counts, and notes supplied by KH. The fee column in the supplied exhibit was blank and remains for proposers to complete in Exhibit B. 3. Scope of Services A. Annual Financial Statement Audits Perform an independent audit of each entity listed in Exhibit A, in accordance with the applicable professional auditing standards and financial reporting framework. The engagement agreement shall identify the applicable standards, reporting framework, audit period, and deliverables for each entity. • Examine financial statements, accompanying notes, and supporting accounting records. • Review rental revenue, vacancy loss, operating expenses, management fees, accounts payable, debt obligations, capital expenditures, and related-party transactions. • Review cash balances, restricted funds, replacement reserves, operating reserves, and other required accounts. • Evaluate significant accounting policies, estimates, and internal controls relevant to financial reporting. • Issue the independent auditor's report and final audited financial statements, together with required communications. • Communicate material misstatements, significant deficiencies, material weaknesses, and other matters required by applicable professional standards. B. LIHTC and Affordable Housing Considerations The proposer shall describe the LIHTC-related procedures included in its proposed base fee and separately identify optional compliance services. As applicable to the entity and engagement, procedures may include review of ownership and partnership agreements, investor reporting obligations, relevant regulatory agreements, tax-credit calculations, qualified basis, applicable fraction calculations, reserve requirements, management fees, distributions, and compliance-related financial obligations. The firm shall distinguish financial statement audit procedures from tenant eligibility reviews, physical inspections, tax-return preparation, and formal LIHTC compliance monitoring. Additional services must be specifically described and priced in the proposal. C. Other Applicable Audit Requirements The firm shall identify additional audit and reporting requirements applicable to each entity, including HUD, federal award, state housing finance agency, lender, investor, and contractual requirements where applicable. Any Single Audit or other separate regulatory audit shall be identified and priced separately unless expressly included in the base scope. The proposer shall not assume that every entity is subject to identical federal audit requirements. D. Rural Development Reporting Requirement Evergreen Knoll LP is subject to Rural Development (RD) reporting in addition to its LIHTC audit requirements. The auditor shall identify and address applicable RD audit, financial reporting, and submission requirements for this property, as applicable to the entity and its RD program, and coordinate required deliverables and deadlines with Keene Housing. Proposers should describe their experience with USDA Rural Development housing audits and reporting. E. State and Federal Tax Filing Requirements In addition to the audit and reporting services described above, the selected firm shall identify, prepare, review, and/or coordinate all applicable State and Federal tax filings required for each property or ownership entity listed in Exhibit A, as specified in the final contract. This may include entity-level income tax returns and related schedules, tax-credit-related filings, extensions, and other required tax forms or submissions, as applicable. The proposer shall clearly identify in its proposal which tax preparation and filing services are included in its fee, which are available for an additional fee, the anticipated filing calendar and deadlines, and any information or assistance required from Keene Housing. The selected firm shall notify Keene Housing promptly of filing obligations, deadlines, and any issues that could affect timely and accurate submission. All required filings shall be completed in accordance with applicable State and Federal requirements. F. Affordable Housing Development Audit and Tax Services Keene Housing is actively developing affordable housing. The selected firm shall provide audit and tax services related to affordable housing development projects, as applicable to each project and as defined in the final contract. Services shall include, but are not limited to, preparation or review of development cost certifications, tax credit certifications, and satisfaction of all applicable HUD and IRS requirements. The proposer shall describe its experience supporting affordable housing development projects, identify the development-related audit, certification, tax, and compliance services it can provide, and separately identify any services or fees not included in its proposed compensation. The selected firm shall coordinate with Keene Housing to confirm project-specific requirements, deliverables, and deadlines. G. Management Letter and Meetings Provide a management letter describing significant observations and recommendations concerning financial reporting, internal controls, reserves, related-party transactions, compliance with applicable financial covenants and ownership agreements, and opportunities to improve financial management. Conduct an entrance conference, coordinate fieldwork, discuss preliminary findings, and provide an exit conference or follow-up meeting as requested. Significant matters requiring prompt attention shall be communicated promptly when identified. 4. Deliverables and Schedule For each entity, deliverables shall include, as applicable, final audited financial statements and the independent auditor's report, required supplementary schedules and regulatory reports, a management letter, required communications, and electronic copies in PDF format. The firm shall provide a work plan and confirm its ability to meet the audit due dates listed in Exhibit A. KH and the selected firm will agree on detailed fieldwork and draft-report dates after award. 5. Firm Qualifications • Current authorization to provide public accounting services in New Hampshire or otherwise satisfy applicable licensing requirements. • Demonstrated experience auditing LIHTC properties and affordable housing ownership entities. • Experience with limited partnerships, limited liability companies, nonprofit organizations, and public housing-related entities, as applicable. • Knowledge of Section 42 of the Internal Revenue Code and affordable housing financial reporting. • Familiarity with New Hampshire Housing requirements and applicable HUD or federal award requirements. • Adequate staffing, technical expertise, and capacity to meet required deadlines. • Appropriate professional liability insurance and independence from the entities to be audited. Proposers shall disclose actual or potential conflicts of interest and circumstances that may affect independence. 6. Proposal Contents • Firm profile, office location, primary contact, and relevant LIHTC and affordable housing experience. • Evidence of the firm's ability to maintain General Liability insurance, Errors and Omission insurance and worker's compensation insurance each in the amount of $1,000,000 single limit and name KH an additional insured. Proof of insurance must be submitted before any award of contract. • A statement to the effect that the proposal shall remain valid for a period of not less than sixty (60) days from the due date for proposals. • Signature of a person authorized to bind the offering firm to the terms of the proposal. • Disclose any conditions (e.g., bankruptcy, pending litigation, etc.) that may affect the proposer's ability to perform contractually. • Certify that the firm is not debarred, suspended, or otherwise declared ineligible to contract by any federal, state, or local public agency. • At least three current references from similar companies that also participate in audits of LIHTC affiliates. Include company names, beginning date of contract, a description of the work performed, and names, titles, emails, and telephone numbers of individuals that KH can contact as references for your firm. • Qualifications and relevant experience of the engagement partner, manager, and assigned personnel. • Audit methodology, approach to risk assessment and internal controls, quality assurance, staffing, and proposed schedule. • Briefly describe any technology tools that may be utilized and the firm's willingness and ability to perform the entire audit process remotely. • Most recent peer review report and related documentation, where applicable, and disclosure of relevant quality-control findings. • Confirmation of independence and disclosure of relevant disciplinary or regulatory matters. Fee Schedule/Compensation • KH anticipates receiving flat fee proposals, per audit report. Please refer to Exhibit A for the flat fee proposed format and briefly describe any assumptions it was necessary to make about the transaction in order to arrive at a flat fee determination. List out its proposed reimbursable expenses and any additional administrative fees. • The firm must indicate an escalator for the flat fee rates for each year of the contract and any option to renew. • Briefly describe the method and frequency of billing. • KH reserves the right to accept other than the lowest fee response. 7. Evaluation and Award KH Evaluation Committee consists of the Executive Director, Director of Finance, and the Accounting Staff. They will evaluate proposals received using the criteria below. Criteria - Maximum Points Experience: Demonstrated successful experience auditing Northern New England LIHTC properties relevant to the scope of work described in this Request for Proposals. - 40 Approach to the Project and Quality of Service: Relevance of firm's project approach and narrative of anticipated consulting services. - 35 Capacity to provide professional services in a timely and quality manner as evidenced by references provided. - (points included in approach/quality) Price: Proposed compensation - 20 Demonstrated understanding of Keene Housing's LIHTC portfolio - 5 KH may request clarifications, conduct interviews, verify references, negotiate scope and fees, or request revised proposals as permitted by its procurement policy and applicable law. KH reserves the right to reject any or all proposals, waive minor informalities where permitted, amend or cancel this RFP, and make an award in KH's best interests. The KH Evaluation Committee will make recommendations to the KH Board of Commissioners. The selected firm will be required to have an orientation meeting with KH management and Accounting Staff to discuss expectations, schedule, reporting, and billing prior to the start of the contract. KH reserves the right to waive as an informality, any irregularities in submittals and reserves the right to reject any and all proposals submitted in response to this RFP. KH may elect to cancel this procurement at any time. KH may elect to select one or more firms under this procurement or may elect not to award any contracts. 8. Contract Term and Payment The initial contract term shall be three (3) years, with one two (2) year renewal at KH's discretion, subject to satisfactory performance, available funding, applicable procurement requirements, and agreed fees. The written engagement agreement shall establish the entities covered, scope, fees, schedule, reporting requirements, responsibilities, and procedures for authorizing changes. No additional services may be billed without written authorization from KH. 9. Confidentiality and Records The selected firm shall safeguard confidential financial, ownership, employee, and tenant information and comply with applicable privacy and security requirements. Audit work papers and related records shall be retained in accordance with applicable professional standards and legal requirements. Access by KH and authorized oversight or regulatory officials shall be provided as required by law, contract, and professional standards. Suspected fraud, significant financial reporting issues, material control deficiencies, and other matters requiring management attention shall be communicated in accordance with applicable standards and legal requirements. 10. Procurement Requirements This procurement shall be conducted in accordance with KH's procurement policy and applicable federal, state, and local requirements. Where applicable, the selected firm shall comply with relevant auditor-selection and procurement requirements under 2 CFR Part 200, including applicable provisions of §§ 200.317-200.327 and 200.509. A written contract or engagement agreement approved by KH must be executed before work begins. 11. Proposal Submission Proposals must be received no later than 5:00 pm on November 12, 2026. Submit proposals to: Keene Housing Attn: Brian W. Scott Email: bscott@keenehousing.org Subject: RFP - LIHTC Audit Services - [Firm Name] Proposals shall remain valid for at least 90 calendar days following the submission deadline. Late proposals may be rejected. The Selected firm must be prepared to begin providing services within forty (40) calendar days of the date of contract award, by January 4, 2027. Proposers must submit one pdf version of their proposals and a separate email with the pricing to bscott@keenehousing.org no later than 2:00 PM on November 20, 2026. Lengthy narrative is discouraged. Proposals should follow the outline presented above. All proposals that are not received by the deadline will be considered late and will be returned to the proposer unopened. Questions All questions must be submitted in writing by e-mail to bscott@keenehousing.org no later than November 12, 2026. All questions and answers will be shared with all that have expressed interest and can also be found at the Keene Housing website, Tab - 'Business Opportunities.' KH strongly encourages minority-owned and women-owned businesses, socially and economically disadvantaged businesses and small businesses to respond to this RFP or to participate in subcontracting capacity on KH contracts. KH is interested in proposals that, if awarded, would provide KH residents and voucher holders substantive work experience opportunities as described in Section 3 of the Housing Act of 1968, as amended regarding the provision of training and employment opportunities for low-income persons, with priority to KH residents. EXHIBIT A - LIHTC Properties and Characteristics Property / Ownership Entity - Fiscal Year-End - Note - Program / Service - Audit Due - # Units Evergreen Knoll LP - 12/31 - notes 1,2 - LIHTC and RD - Audit Due 2/22 - 24 units Stone Arch Village Family Housing - 12/31 - note 1 - LIHTC - Audit Due 2/22 - 33 units Stone Arch Village Elderly Housing - 12/31 - note 1 - LIHTC - Audit Due 2/22 - 24 units Brookbend West Housing Associates - 12/31 - note 1 - LIHTC - Audit Due 2/22 - 32 units West Swanzey Affordable Housing Assoc - 12/31 - note 1 - LIHTC - Audit Due 2/22 - 24 units Roosevelt West Housing Associates - 12/31 - notes 1,3 - LIHTC - Audit Due 2/22 - 30 units CST Housing Associates - 10/31 - note 1 - LIHTC / multifamily - Audit Due 12/20 - 90 units Brookbend East Housing Associates - 10/31 - note 1 - LIHTC - Audit Due 12/20 - 40 units Roosevelt East Housing Assoc - 10/31 - note 1 - LIHTC - Audit Due 12/20 - 30 units Exhibit A Notes: 1. A separate audit report is prepared for the entity but is also included in the Keene Housing audit. 2. Evergreen Knoll LP is subject to Rural Development (RD) reporting in addition to its LIHTC audit requirements. 3. Roosevelt West Housing Associates is expected to begin occupancy in May 2027. EXHIBIT B - PROPOSER FEE SUMMARY Proposers shall complete the fee column in Exhibit A and summarize the total below. Fee Category - Proposed Amount Total annual audit fees for all listed entities - $________________ Optional LIHTC compliance procedures - $________________ Additional regulatory audits, if applicable - $________________ Estimated reimbursable expenses - $________________ Total proposed annual amount - $________________ EXHIBIT C - PROPOSER CERTIFICATION The undersigned certifies that the information submitted is accurate to the best of their knowledge, that known conflicts of interest have been disclosed, and that the firm is prepared to perform the services described in this RFP subject to contract award and execution of an engagement agreement. Firm Name: __________________________________ Authorized Representative: _____________________ Title: _______________________________________ Signature: ___________________________________ Date: _______________________________________