During the month of September 2022, A. J. Johnson will be partnering with the MidAtlantic Affordable Housing Management Association for three live webinar training sessions intended for real estate professionals, particularly those in the affordable multifamily housing field. The following sessions will be presented:
September 13: Basic LIHTC Compliance (live webinar) - This training is designed primarily for site managers and investment asset managers responsible for site-related asset management and is especially beneficial to those managers who are relatively inexperienced in the tax credit program. It covers all aspects of credit related to on-site management, including the applicant interview process, the determination of resident eligibility (income and student issues), handling recertification, setting rents - including a full review of utility allowance requirements - lease issues, and the importance of maintaining the property. The training includes problems and questions designed to ensure that students are fully comprehending the material.
September 15: The Verification and Calculation of Income and Assets on Affordable Housing Properties (live webinar)- This five-hour live webinar (there will be a 1.5-hour lunch break) provides concentrated instruction on the required methodology for calculating and verifying income, and for determining the value of assets and income generated by those assets. The first section of the course involves a comprehensive discussion of employment income, along with military pay, pensions/social security, self-employment income, and child support. It concludes with workshop problems designed to test what the student has learned during the discussion phase of the training and serve to reinforce HUD-required techniques for the determination of income. The second component of the training focuses on a detailed discussion of requirements related to the determination of asset value and income and is applicable to all federal housing programs, including the low-income housing tax credit, tax-exempt bonds, Section 8, Section 515, HOME, and HOPE VI. Multiple types of assets are covered, both in terms of what constitutes an asset and how they are verified. This section also concludes with a series of problems, designed to test the student’s understanding of the basic requirements relative to assets.
These sessions are part of the year-long collaboration between A. J. Johnson and MidAtlantic AHMA that is designed to provide affordable housing professionals with the knowledge needed to effectively manage the complex requirements of the various agencies overseeing these programs.
Persons interested in any (or all) of these training sessions may register by visiting either www.ajjcs.net or https://www.mid-atlanticahma.org.
A. J. Johnson Partners with CHFA on Live Webinar - What Happens After an 8823 is Issued?
A.J. Johnson will be presenting 8823s - What Happens After They Are Sent to the IRS on October 20, 2022, at 11:00 AM (EST). This class will be offered through Colorado Housing and Finance Authority s chfareach educational programming for affordable housing property owners and managers. An updated link for course registration is included below. All tax credit professionals work hard to avoid the dreaded 8823 - Report of Noncompliance. However, properties still receive 8823s and those reports of noncompliance are sent to the IRS. But what happens then? What is the role of the HFA after it issues the 8823 to the IRS? What should a property owner do after being reported to the IRS for noncompliance? This 1.5-hour live webinar explores these issues and will outline the responsibilities of both the HFA and property owners after the issuance of an 8823. Unlike most LIHTC training, this session is presented from the point of view of the IRS and will provide owners and managers of LIHTC properties with a unique perspective regarding how to protect the credits for these important properties. The link to register for the session is https://www.chfainfo.com/rental-housing/chfareach/all-events#id=11338&cid=986&wid=501&type=Cal
A. J. Johnson Partners with Enterprise to Provide LIHTC Training and HCCP Exam
On November 1, 2, and 3, A. J. Johnson will be partnering with Enterprise Community Partners for in-person training intended for real estate professionals, particularly those in the affordable multifamily housing field. Following the in-person training sessions, AJ will be providing a review of testable areas and in-person administration of the Housing Credit Certified Professional (HCCP ) exam. The following sessions will be presented: November 1, 2022: Intermediate LIHTC Compliance - Designed for more experienced managers, supervisory personnel, investment asset managers, and compliance specialists, this program expands on the information covered in the Basics of Tax Credit Site Management. A more in-depth discussion of income verification issues is included as well as a discussion of minimum set-aside issues (including the Average Income Minimum Set-Aside), optional fees and use of common areas. The Available Unit Rule is covered in great detail, as are the requirements for units occupied by students. Attendees will also learn the requirements relating to setting rents at a tax credit property. This course contains some practice problems but is more discussion oriented than the Basic course. A calculator is required for this course. November 2, 2022: Advanced LIHTC Compliance - This full-day training is intended for senior management staff, developers, corporate finance officers, and others involved in decision-making with regard to how LIHTC deals are structured. This training covers complex issues such as eligible and qualified basis, applicable fraction, credit calculation (including first-year calculation), placed in service issues, rehab projects, tax-exempt bonds, projects with HOME funds, Next Available Unit Rule, employee units, mixed-income properties, the Average Income Minimum Set-Aside, vacant unit rule, and dealing effectively with State Agencies. Individuals who take both two days of training will be provided with study materials and a practice exam to assist in preparation for the HCCP exam, to be administered on November 3. November 3, 2022: Review of testable areas and administration of the Housing Credit Certified Professional (HCCP ) exam. Following the two days of intensive and comprehensive LIHTC training, AJ will provide a review of program requirements and will administer the HCCP exam in person. The training and exam will take place at the Doubletree by Hilton, 5485 Twin Knolls Road, Columbia, MD. Persons interested in any (or all) of these training sessions should contact Lisa Ciano at Enterprise Partners. Lisa s email is email@example.com.
Meta (formerly Facebook) Settles Fair Housing Complaint with DOJ
The Department of Justice (DOJ) has entered into a Settlement Agreement resolving allegations that Meta Platforms, Inc., formerly known as Facebook, Inc., has engaged in discriminatory advertising in violation of the Fair Housing Act (FHA). The proposed agreement resolves a federal lawsuit alleging that Meta s housing advertising system discriminates against Facebook users based on their race, color, religion, sex, disability, familial status, and national origin. Meta uses algorithms in determining which Facebook users receive housing ads, and these algorithms rely, in part, on characteristics protected under the FHA. Under the settlement, which still must be approved by the federal court, Meta will stop using an advertising tool for housing ads (known as the "Special Ad Audience tool) that relies on a discriminatory algorithm. Meta will also develop a new system to address racial and other disparities caused by its use of personalization algorithms in its housing ad delivery system. The settlement marks the first time that Meta will be subject to court oversight for its ad targeting and delivery system. The DOJ lawsuit alleged both disparate treatment and disparate impact discrimination. Disparate treatment because it intentionally classifies users on the basis of FHA-protected characteristics and disparate impact because the algorithms affect Facebook users differently on the basis of their membership in protected classes.
HUD Finalizes New MOR Scheduling Protocol
Section 8 properties are subject to audits and inspections known as Management & Occupancy Reviews (MORs). HUD has recently introduced a new risk-based management and occupancy review schedule. The new schedule is designed to streamline and reduce the number of MOR reviews. The final rule implementing this new schedule comes seven years after the proposed rule and goes into effect on September 26. Based on HUD data, most sites have historically received "satisfactory, "above average, or "superior MOR scores. Therefore, there is no need to review properties as frequently as in the past. The new MOR schedule establishes a frequency for completion of MORs based on a site s previous MOR score and the site s rating or classification under a risk-based model. The frequency of MORs described here will begin with the first MOR scheduled on or after September 26. The final rule changes MOR scheduling for the following Section 8 Programs: New Construction;Substantial Rehabilitation;State Housing Agencies;New Construction financed under Section 515 of the Housing Act of 1949;Loan Management Set-Aside;HAP Program for the Disposition of HUD-Owned Projects; andSection 202/8 Program The schedule does not apply to restructured Mark-Market properties. Classifications The new MOR schedule establishes a frequency for the completion of MORs based on a site s previous MOR score and its risk classification. The risk classifications are: Not Troubled;Potentially Troubled; orTroubled The risk rating considers the site s financial characteristics such as low debt service coverage ratio, recent defaults, excessive vacancies, low REAC scores, tenant input provided directly to HUD, and pending foreclosure or partial claim payments. The New Schedule Section 8 sites that are "Potentially Troubled or "Troubled will automatically be reviewed annually. The new scheduling changes apply only to sites with a risk classification of "Not Troubled. If a site s risk classification is "Not Troubled and the MOR review conducted on September 26 or later is "Unsatisfactory or "Below Average, the next MOR will be conducted within 12 months.If a site s risk classification is "Not Troubled and the MOR review conducted on September 26 or later is "Satisfactory, the next MOR will be conducted within 24 months.If a site s risk classification is "Not Troubled and the MOR review conducted on September 26 or later is "Above Average or "Superior, the next MOR will be conducted within 36 months. Implementation Owners and managers will know the timeframe for the site s next review at the first MOR following September 26. In addition to the noted schedule change, the final rule states that a MOR must be conducted within six months of a management or ownership change regardless of the results of the previous MOR. It should be noted that MORs are not the same as REAC physical inspections, which are not affected by the new rule.