Affirmatively Furthering Fair Housing Assessment Tool - Announcement of Final Approved Document, December 31, 2015

A. J. Johnson Partners with Mid-Atlantic AHMA for December Training on Affordable Housing—April 2025

In April 2025, A. J. Johnson will partner with the MidAtlantic Affordable Housing Management Association for four live webinar training sessions for real estate professionals, particularly those in the affordable multifamily housing field. The following sessions will be presented: April 15: Pets/Pot/Service Animals: Navigating Fair Housing A Comprehensive 90-Minute Webinar for Housing Professionals Join us for an essential training session that tackles three of the most challenging areas in fair housing compliance today. This practical webinar will equip affordable housing providers with clear guidance on: Service and Emotional Support Animals: Learn the crucial legal distinctions between pets and assistance animals, proper verification procedures, and how to handle accommodation requests while complying with FHA regulations. Pet Policy Development: Explore effective strategies for creating and enforcing fair pet policies that address resident needs while considering property management concerns. Medical Marijuana Considerations: Explore the intricate relationship between federal and state laws concerning medical marijuana use in housing, including the requirements for reasonable accommodation. Through case studies, interactive discussions, and expert analysis of recent court decisions, you will gain actionable strategies for confidently addressing these challenging issues. This tool is perfect for property managers, leasing agents, compliance officers, and housing administrators who want to minimize legal risk while creating inclusive communities. April 16: VAWA with Tips on Communicating with Victims - The Violence Against Women (VAWA) Reauthorization Act of 2013 expanded VAWA protections to many different affordable housing programs, including the Low-Income Housing Tax Credit (LIHTC) Program. While HUD has provided detailed requirements on VAWA implementation at HUD properties, there has been no uniform guidance for LIHTC owners and managers. A proposal before Congress would legislate that LIHTC Extended Use Agreements contain VAWA requirements. The IRS has not provided guidance, and while many state agencies are requiring VAWA plans, they are not providing information on what the plans should look like. This two-hour training, when combined with the course materials, will review VAWA requirements and recommend best practices for developing VAWA plans at LIHTC and other non-HUD properties. The session will be presented by A. J. Johnson, a recognized expert in the affordable housing field and the author of "A Property Manager s Guide to the Violence Against Women Act. April 24: Preparation for Physical Inspections - Agency inspections of affordable housing properties are required for all affordable housing programs, and failure to meet the required inspection standards can result in significant financial and administrative penalties for property owners. This four-hour training focuses on how owners and managers may prepare for such inspections, with a concentration on HUD NSPIRE inspections and State Housing Finance Agency inspections for the LIHTC program. Specific training areas include (1) a complete discussion of the most serious violations, including health & safety; (2) how vacant units are addressed during inspections; (3) when violations will be reported to the IRS; (4) the 20 most common deficiencies; (5) how to prepare a property for an inspection; (6) strategies for successful inspections; and (7) a review of the most important NSPIRE Standards as they relate to the three inspectable areas [Units/Interior/Exterior]. The training will summarize the HUD Final Rule on NSPIRE with a discussion of (1) the new Self-Inspection Requirement and Reports; (2) Timeline for Deficiency Correction; (3) New Affirmative Requirements; and (4) Tenant Involvement. At the end of the training, attendees will have a blueprint they can use to prepare their properties for agency-required physical inspections, regardless of the program under which they operate. April 29: Understanding and Managing Hoarding in Residential Properties: A Fair Housing Compliance Workshop - In May 2013, the American Psychiatric Association (APA) confirmed that Compulsive Hoarding is a mental disability and a protected class. More than 15 million Americans suffer from the mental health problem of hoarding and potential problems from hoarding include noxious odors, pest infestation, mold growth, increased risk of injury or disease, fire hazards and even structural damage. Hoarding is the one class of disability that requires landlords to offer an accommodation even if an accommodation is not requested! This 1.5-hour live webinar is designed to assist multifamily managers in understanding how to deal with hoarding problems in a way that will prevent liability under fair housing law. The session will define hoarding and provide detailed recommendations on how to deal with a hoarding problem. It will outline examples of accommodations for hoarding, how to engage in the "interactive process with residents who hoard, and the steps necessary to remove uncooperative residents. Finally, a recent court case regarding hoarding will be reviewed as an illustration of the potential difficulties managers face in hoarding situations. This is an evolving area of fair housing law, and this webinar will provide the guidance necessary to approach the problem in a systematic way that will give multifamily operators the best chance at avoiding the legal traps that exist when dealing with this unique disability. These sessions are part of the year-long collaboration between A. J. Johnson and MidAtlantic AHMA and are designed to provide affordable housing professionals with the knowledge to effectively manage the complex requirements of the various agencies overseeing these programs. Persons interested in any (or all) training sessions may register by visiting either www.ajjcs.net or https://www.mid-atlanticahma.org.

Impact of Trump Administration's Regulatory Restructuring on HUD and IRS

The Trump administration's recent executive order on federal regulations, "Ensuring Lawful Governance and Implementing the President's 'Department of Government Efficiency' Deregulatory Initiative," signals significant changes for federal agencies. The order has particularly notable implications for the Department of Housing and Urban Development (HUD) and the Internal Revenue Service (IRS). The New Regulatory Framework On February 19, 2025, President Trump signed this executive order as part of a broader deregulatory agenda aimed at reducing what the administration views as bureaucratic overreach. The directive mandates that federal agencies conduct a comprehensive 60-day review of their regulatory frameworks to ensure alignment with both legal requirements and administration policies. The order targets explicitly regulations considered: Unconstitutional Based on improper delegations of legislative power Imposing excessive costs without clear public benefits Harmful to national interests Hindering development across various sectors This order is part of a series of regulatory rollbacks, including directives like "Ensuring Accountability for All Agencies" and "Unleashing Prosperity Through Deregulation," which expand upon the administration's previous deregulatory efforts. Specific Impacts on the IRS The IRS faces several significant challenges under this new directive: Continued Hiring Freeze: The executive order maintains an existing hiring freeze at the IRS, which will remain in effect until the Treasury Secretary, in consultation with the Office of Management and Budget (OMB) Director, determines that lifting it serves the national interest. Increased White House Oversight: IRS regulations will once again be subject to White House review through the Office of Information and Regulatory Affairs (OIRA), reinstating a policy from Trump's first term that adds another layer of scrutiny to IRS rulemaking. "10-for-1" Deregulation Mandate: The IRS must eliminate ten existing guidance documents for every new rule or guidance it issues, significantly constraining its ability to update tax regulations and provide new guidance. These measures could substantially impact the IRS's capacity to uphold compliance and maintain operational efficiency, potentially affecting tax administration and enforcement nationwide. Implications for HUD For the Department of Housing and Urban Development, the executive order brings equally significant changes: Comprehensive Program Review: The order requires a review of hundreds of HUD programs, potentially leading to significant restructuring or budget cuts. Grant Funding Uncertainty: Although a federal court temporarily blocked a separate memo seeking to freeze federal grants, the administration's intent to reassess HUD funding remains evident. "10-for-1" Rule Application: Like the IRS, HUD must adhere to the requirement of eliminating ten existing regulations for every new one proposed, which could significantly impact housing policy implementation and program management. These changes may affect HUD's ability to administer housing assistance programs, enforce fair housing regulations, and support community development initiatives. Legal and Procedural Challenges The administration's deregulatory push faces potential legal obstacles: Agencies seeking to rescind or modify rules must generally follow a new rulemaking process, including issuing a Notice of Proposed Rulemaking, collecting public comments, and finalizing the new rule. Failure to adhere to these procedural requirements could expose regulatory rollbacks to legal challenges under the Administrative Procedure Act (APA). The APA requires agencies to engage in reasoned decision-making when modifying or rescinding regulations, and courts may overturn agency decisions if this standard is not met. Outlook As the 60-day review period progresses, the IRS and HUD must navigate competing demands: implementing the administration's deregulatory agenda while maintaining their core functions and avoiding legal challenges. The outcome will likely reshape how these agencies operate and could have lasting implications for the United States s tax administration and housing policy. The full impact of these changes will become more evident as agencies determine which regulations to target and how to implement the administration's directives while fulfilling their statutory obligations.

Understanding the HOTMA Educational Assistance Rules

Under the Housing Opportunity Through Modernization Act (HOTMA), specific rules govern how educational assistance is treated as income for Section 8 residents. HOTMA Educational Assistance Rule Overview HOTMA clarified and simplified the treatment of educational assistance in determining a household s income for many affordable housing programs, including most HUD programs, Rural Development Section 515, and the LIHTC program. Under the HOTMA rule: Exclusion of Educational Assistance:Most forms of educational assistance, including scholarships, grants, and work-study income, are excluded from the calculation of annual income. This exclusion applies to both the student and other household members. Limited Exceptions:The only types of educational assistance that may be counted as income are: Amounts exceeding the actual tuition cost, fees, books, and other required educational expenses. Payments for living expenses (e.g., housing, food, and transportation) that are included in the educational assistance package. Student Status and Eligibility: The rule applies to both dependent students and independent students. The educational assistance exclusion is broader for students under Section 8 over 23 with dependent children and generally includes all aid except for amounts used for living expenses. HOTMA s goal in modifying these rules was to reduce administrative complexity and ensure that educational aid meant to support academic success does not create a financial penalty for low-income families participating in HUD programs. Amounts Received Under Section 479B of the Higher Education Act (HEA) of 1965 Educational assistance received under the Higher Education Act is almost always excluded from income even if it exceeds the cost of actual educational expenses. The one exception is for Section 8 residents, where the full amount of educational assistance in excess of actual expenses is included in income. The one exception to this is for Section 8 residents over age 23 with dependent children. HEA assistance is always excluded for this category of resident, as it is for residents in all other affordable housing programs subject to HOTMA. Section 479B provides that certain types of student financial assistance are excluded in determining eligibility for benefits made available through federal, state, or local programs financed with federal funds. The types of financial assistance listed below are considered 479B student financial assistance programs. Federal Pell Grants Teach Grants Federal Work-Study Programs Federal Perkins Grants Student Financial Assistance received under the Bureau of Indian Education Higher Education Tribal Grants Tribally Controlled Colleges or Universities Grant Program Employment Training Program under Section 134 of the Workforce Innovation and Opportunity Act (WIOA) Any other awards under Section 479B Other student financial assistance may also be excluded from income, but only to the extent it pays for actual educational expenses. Such assistance includes grants or scholarships from the following sources: Federal government A State (including U.S. territories), Tribe, or local government A private foundation registered as a non-profit under 26 USC 501(c)(3) A business entity (such as a corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, or non-profit entity). An institution of higher education Military assistance (e.g., GI Bill) Other monetary contributions will generally not be excluded from income, and may include - Financial support provided to a student in the form of a fee for services performed (e.g., work-study or teaching fellowship) that is not excluded under Section 479B of the HEA. Gifts, including gifts from family or friends. Covered Costs Costs that may be considered educational expenses include: Tuition Books Supplies Room Board Fees required and charged to a student by an institution of higher education. Property managers operating properties subject to HOTMA need to be familiar with the various types of financial assistance students will likely receive and whether or not such assistance may be excluded from income. Bottom Line The Housing Opportunity Through Modernization Act (HOTMA) streamlines the treatment of educational assistance as income for residents receiving housing support, such as Section 8. In general, most forms of educational assistance, including scholarships and grants, are excluded from income calculations for both the student and their household members. There are limited exceptions, which include amounts that exceed tuition costs and payments designated for living expenses. This rule applies to both dependent and independent students, with more extensive exclusions for Section 8 students over 23 who have dependents. HOTMA seeks to reduce administrative burdens and ensure that educational aid does not financially penalize low-income families.

Executive Order Establishes English as Official U.S. Language: Impact on HUD Programs

President Donald Trump signed an Executive Order on March 1, 2025, establishing English as the official language of the United States. This move has significant implications for federal agencies and their communication policies, especially for the Department of Housing and Urban Development (HUD) and Rural Development properties. Key Changes The Executive Order revokes Executive Order 13166, issued on August 11, 2000. That previous order mandated federal agencies, including HUD, to implement Limited English Proficiency (LEP) policies for their programs. Under the previous order, agencies were required to ensure that individuals with limited English proficiency could access their services. With the revocation, HUD will no longer mandate LEP policies for owners and Public Housing Authorities (PHAs) in HUD-assisted properties. Current Status and Recommendations It's important to note that the new Executive Order does not prohibit federal agencies from producing documents in languages besides English. However, they will no longer be legally obligated to do so. No immediate action is necessary for HUD and Rural Development property owners and managers who currently have LEP policies in place. I recommend maintaining current policies until formal guidance is issued. Both HUD and Rural Development are expected to provide official guidance on this change in the coming weeks or months. Project operators are advised to await this guidance before implementing any changes to their existing language access policies. Looking Ahead This policy shift signifies a substantial change in federal language requirements. Housing providers should remain informed about upcoming agency guidance that will clarify expectations and requirements going forward. Once formal guidance is released, property managers and owners should consult with their industry associations and legal advisors to ensure compliance. This article offers informational content based on current developments and should not be interpreted as legal advice. Property owners and managers should seek guidance from qualified legal professionals regarding specific compliance issues.