Assurance Services
Cost Certifications
Cost certifications are a required process in construction projects that may include government funded projects or financed developments for affordable housing and projects offering tax credits. LCW CPAs is on the short list of approved accounting firms in the Commonwealth of Massachusetts who prepare cost certifications.
We have prepared cost certifications for rental property owners making building improvements and developers of affordable housing in Massachusetts including 40B cost certifications to provide assurance to the Commonwealth and other appropriate authorities that project costs have been properly accounted for.
40B Cost Certifications
A 40B cost certification, like other cost certifications, will confirm the total project costs for determining eligibility for affordable housing financing as well as ensure that the costs are reasonable and comply with applicable regulations set forth by the Massachusetts Housing Finance Agency (MHFA), the Department of Housing and Community Development (DHCD), or other relevant authorities.
Contact LCW CPAs to have us provide an assurance report that verifies and validates the project costs and cost allocations. The cost certification report ensures accuracy, transparency, and compliance with contractual requirements and applicable regulations for the contractor or developer to the be approved for related tax credits.
Typically, our clients contact us for construction cost certifications when the development is built and is approximately 80% occupied. We will then prepare the cost certification report for our client to submit to the Commonwealth of Massachusetts and any other applicable offices. For 40B cost certifications, the cost certification report will be submitted to the Massachusetts Housing Finance Agency (MHFA) or the Department of Housing and Community Development (DHCD).
Our assurance and cost certification team will work seamlessly to review expenses related to the project and provide assurance that the money invested in the project is what was budgeted.