HUD recently issued a clarification on Housing Notice H2013-23, Change in Annual Financial Statement (AFS) Submission Requirements for Some Multifamily Housing Projects.
(From HUD): Clarification of Notice H2013-23
Housing Notice H2013-23 allows profit-motivated owners that receive less than $500,000 in combined federal financial assistance to file owner-certified financial statements in lieu of audited statements. The $500,000 threshold applies to owning entities and not to individual projects. If an owner owns more than one HUD assisted project then the federal awards threshold would apply to all Section 8 contracts and HUD mortgages owned by the entity.
To view H2013-23, please click here
The official posting on HUDs website can be found here