Modern solutions to your compliance needs

HUD Issues New Guidance on Solar and Rooftop Leases for Multifamily Housing

The U.S. Department of Housing and Urban Development (HUD) has released new guidance on solar, cell tower, and rooftop leases for HUD-assisted and HUD-insured multifamily housing projects. This guidance aims to streamline the process for property owners to enter into these commercial lease agreements while protecting HUD's interests. Key Points Applicability: The notice applies to owners of HUD-insured or HUD-subsidized multifamily projects subject to a HUD business agreement requiring approval for encumbrances, including commercial leases. Types of Leases Covered: Solar leases and Power Purchase Agreements (PPAs) Cell tower leases Other rooftop commercial leases Ground-mounted solar electric systems Required Documentation: Owners must submit a package to their HUD Account Executive, including: Unexecuted lease agreement Estimated annual lease payments Signed HUD Multifamily Rooftop Lease Owner Self-Certification Unsigned HUD Multifamily Solar, Cell Tower, and Rooftop Lease Rider Recent roof inspection records (for rooftop systems) Mortgagee approval (for FHA-insured properties) Estimated electricity cost savings (for solar systems) HUD Review Process: HUD will review the owner's standing and compliance Local HUD counsel will review the legal aspects of the lease The Multifamily Asset Management Division Director will grant approval Post-Approval Requirements: Execute and submit the HUD Multifamily Solar, Cell Tower, and Rooftop Lease Rider Ensure adequate property insurance coverage Increase Reserve Fund for Replacements deposits if necessary Perform utility consumption and emissions benchmarking (for solar on HUD-assisted projects) Adjust utility allowances if applicable (for solar on HUD-assisted projects) Key Considerations: Roof condition and remaining useful life The project's capacity to support rooftop equipment Financing plan for equipment removal/reinstallation during roof replacement Insurance coverage for potential damages Implications for Property Owners This guidance clearly outlines a pathway for multifamily housing owners to leverage their rooftop space for additional income or energy cost savings. By outlining specific requirements and processes, HUD aims to facilitate the adoption of solar energy and other rooftop uses while safeguarding the interests of the properties, tenants, and HUD's investments. Property owners should review the entire notice carefully and consult with their HUD Account Executives when considering entering these lease agreements. The potential benefits of reduced energy costs and additional income should be weighed against the responsibilities and requirements outlined in the guidance. Due to potential tax ramifications, owners of LIHTC properties that are layered with the relevant HUD programs should consult tax counsel before executing any agreements for the use of roof space. Conclusion HUD's new guidance represents a significant step in supporting the adoption of clean energy technologies and maximizing the utility of multifamily housing properties. By providing a clear framework for approval and implementation, HUD enables property owners to explore innovative ways to reduce costs and generate income, ultimately contributing to the sustainability and financial health of the multifamily housing sector.

A. J. Johnson to Participate in 29th Annual Mid-Atlantic AHMA Fall Conference

A. J. Johnson will participate in the Mid-Atlantic Affordable Housing Management Association (AHMA) 29th Annual Fall Conference, which will take place in Richmond, VA, from November 19-21, 2024. This year's conference promises to be invaluable for professionals in the affordable housing industry, offering a comprehensive program that addresses both current challenges and future trends.  Highlights of the Conference: 1. HOTMA Implementation and Beyond While the Housing Opportunity Through Modernization Act (HOTMA) remains a focal point, this year's conference expands its scope to cover many pressing issues in affordable housing management. Attendees will gain insights on HOTMA implementation and other critical topics that impact their daily operations. 2. Diverse Learning Tracks  The conference features multiple specialized tracks to cater to various roles and interests within the industry:  - General Interest Track  - LIHTC Track  - HUD Track  - Special Interest Track  - Maintenance Workshop Track  3. Expert-Led Sessions  Renowned industry experts, including A. J. Johnson, Jenny DeSilva, and Dr. Dori Bryan-Ployer, will lead sessions on topics such as conflict resolution, marketing strategies, cyber awareness, and the impact of HOTMA on different housing programs. 4. A. J. Johnson will lead a discussion on Hot Topics in Affordable Housing Sessions and will cover crucial subjects like:  - Assistance animals and medical marijuana policies  - Violence Against Women Act (VAWA) compliance  - Fair housing in the age of artificial intelligence  - Dealing with the Death of a Resident  - Preventing Sexual Harassment  - HOTMA Income and Asset Issues  - Management of Layered Projects  5. Other Topics Featuring Industry Leaders such as Jenny DeSilva and Angelique Napoleon will include: - EIV/TRACS and HOTMA  - Understanding Human Trafficking  6. Hands-On Maintenance Workshops  A dedicated track for maintenance professionals offers practical sessions on HVAC systems, motor operations, and effective preventative maintenance planning.  7. Networking Opportunities  The conference includes a vendor exhibition and reception, providing ample opportunities for attendees to connect with peers and industry suppliers.  8. Keynote Address  The event starts with a keynote address titled "Embrace Uncommon Sense: Boost Workplace Engagement and Wellbeing," which sets an inspiring tone for the conference.  Who Should Attend:  This conference is essential for property managers, compliance officers, maintenance supervisors, asset managers, and anyone involved in the affordable housing industry. Whether you're dealing with LIHTC, HUD programs, or mixed-finance properties, there's something valuable for every professional.  Take advantage of this opportunity to stay ahead in the ever-evolving world of affordable housing management. Join us for three days of learning, networking, and professional growth at the Mid-Atlantic AHMA 2024 Fall Conference.  Register now at mid-atlanticahma.org to secure your spot at this premier industry event!

Rural Development Issues Emergency Call System Guidance

The Rural Housing Service (RHS) has issued an Unnumbered Letter providing guidance to Multifamily Housing (MFH) staff and program participants regarding emergency call systems, also referred to as "pullcords" in MFH units. Installing and using emergency call systems in MFH units, commonly in bathrooms and bedrooms, have historically provided a means for tenants to alert others if they require assistance in the case of an emergency, such as a fall, fire, or medical issue. Many installed emergency call systems no longer function and provide a false sense of security, leading tenants to believe the system will directly alert emergency response services or property management. Additionally, the need for emergency call systems has diminished due to the availability and advancements in technology, such as cell phones and personal medical/life alert equipment. The purpose of the Unnumbered Letter is to inform RHS staff and property operators that RHS does not require emergency call systems in any MFH units. However, some MFH properties still have these systems. Rural Development requires the system to be operational if an emergency call system is in place in any unit. MFH properties that continue to utilize emergency call systems must ensure that the systems work as designed. The system must be regularly inspected per state and local laws. If a property previously used an emergency call system and it is no longer operational, the inoperable system must be removed. Owners and managers are responsible for ensuring that tenants understand how the emergency call system functions. It is recommended that owners provide written instructions and a demonstration of the system to tenants. Recommendations include: Step-by-step instructions on how to use the system. Guidance to tenants on what services are available in response to the system activation, including clarification that the system is not tied to and, therefore, not a substitute for 911 emergency services. Clearly marked features of the system in each unit. Steps on how to correct a false alarm if the system is accidentally activated or misused by residents or visitors. Steps on how to report problems with the emergency call system. In conclusion, while the Rural Housing Service (RHS) no longer mandates the installation of emergency call systems in Multifamily Housing (MFH) units, properties that choose to maintain these systems must ensure they are fully operational and regularly inspected. As advancements in personal alert technology provide reliable alternatives, MFH property owners and managers should prioritize educating tenants on the limitations and proper use of existing emergency call systems. This approach not only helps prevent misunderstandings about the system s capabilities but also enhances tenant safety by encouraging the use of more effective emergency response options.

2025 Social Security COLA Announced

The federal government announced on October 10, 2024, that the Social Security Cost of Living Adjustment (COLA) for 2025 will be 2.5%, slightly lower than the 3.2% increase for 2024. This increase will provide an additional $50 per month for the average retiree. Social Security recipients will receive a notice in the mail in early December showing their new benefit amount. Recipients will see an increase in their January 2025 payment. Those receiving SSI will see the increase on December 31, 2024. Owners and managers of properties required to determine residents' incomes should use the new COLA SS rate when projecting applicants' and residents' incomes. This also affects individuals receiving SSI, VA pensions, Civil Service pensions, and Railroad retirement.