Income Statements for Breaking Ground
For applicants that want to qualify for buildings that have an income bracket, quite a lot of financial materials are necessary to pass through the process if the individual applying is a sole-member LLC (sole proprietorship) or otherwise runs a small business.
The reason for this is that in order to fall into the income brackets required by the agencies offering these middle-class apartments in New York, one must show that they are making income between 28,000 and 38,000, depending on the type of apartment they want to qualify for.
I have been receiving frequent requests from applicants to Breaking Ground which are requesting a "notarized estimate of net income," "notarized projection of net income" or "letter from CPA showing income."
Many CPA firms do not want to make such guarantees. I personally have no problem issuing projections for Breaking Ground or any other agencies that need such reports for their compliance department.
Typically such a report includes the prior three years of income and expenses (itemized) and a net income number. They normally ask for both the Federal returns and the State returns, and ask the applicant to project out the current year. In other words, in October, you only have 10 months of activity as "actuals" for the current year, so a projection needs to be made for the remaining two months.
This projection is what I continuously get hired to complete for clients in Manhattan. Usually the projection is an excel extract with an accompanying report. I am proud to say that several of my past clients have been approved for their apartment.