Follow Eight-Step Plan to Document Rehab and Repair Costs
It may be tempting to take shortcuts when keeping records of rehabilitation and repair costs, rather than fully documenting the need for and reasonableness of these costs. But taking shortcuts could backfire, especially if you get audited.
Under HUD rules, you must be able to show that all costs, including those for repair and rehabilitation, are “reasonable, necessary, and properly accounted for” by site management. HUD auditors check for detailed records to back up the amounts you charge the site for repair and rehabilitation.