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Audited Financial Statements Handbook

The California Department of Housing and Community Development (HCD) and the California Housing Finance Agency (CalHFA) have revised (September 2016) the joint Audited Financial Statements Handbook for projects administered under both Departments either jointly or individually. Audits submitted to HCD or CalHFA must adhere to this joint Audited Financial Statements Handbook. HCD and CalHFA have been coordinating selected administrative functions such as the joint Audited Financial Statements Handbook to improve the State's ability to serve and coordinate housing needs and to achieve administrative efficiencies.

Section 8 Contract Administration

Annual Operating Budget

CalHFA Regulatory Agreement requires the submission of an annual operating budget. The annual budget anticipates income, operating expenses and capital improvements for the project. The budget serves as a financial operating plan and helps determine the need for a rent adjustment. Owners and Agents should refer to the project's Regulatory Agreement for specific requirement.

Due Date

The annual Operating Budget and list of anticipated capital improvements for the fiscal year is due 60 days prior to the beginning of the project's fiscal year.

Budget Format

Download the CalHFA Annual Operating Budget preferred format.

Rent Adjustment Request with Budget

When an Annual Operating Budget includes a rent adjustment request, the owner or management agent must submit the following documents:

  • Letter requesting a rent adjustment
  • Unit turnover information for the previous 12 months
  • Utility Analysis, if property has a utility allowance
  • Rent Comparability Study (RCS) for gross rents above the Fair Market Rent. If the RCS is less than five years old, an updated RCS is acceptable; otherwise a new RCS is required.


The Annual Operating Budget can be mailed by US mail or emailed in PDF format to the assigned CalHFA Asset Manager.

Mailing Address

Sacramento Office
P.O. Box 4034 MS 1430
Sacramento, CA 95812-4034
Attn: Assigned Asset Manager

Culver City Office
100 Corporate Pointe, Ste. 250
Culver City, CA 90230
Attn: Assigned Asset Manager

Online Submission

Access CalHFA's Web Compliance Management System (WCMS) to submit the Annual Operating Budget. The budget format is located within the Statement of Operations.

First time users must complete a registration form. Once approved, an email notification will be sent to the requester to access WCMS.