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A. J. Johnson

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NSPIRE – HUD Replacement for REAC Protocol is Moving Forward

February 22, 2020

The Department of Housing & Urban Development (HUD) is well underway in the overhaul of its Real Estate Assessment Center (REAC) physical inspection protocol. The REAC inspection process will eventually be replaced with a new physical inspection procedure known as…

HUD Publishes 2019 Income Limits for Average Income Minimum Set-Aside

February 22, 2020

The Department of Housing & Urban Development (HUD) has published the income limits to be used by Low-Income Housing Tax Credit properties for which the Average Income (AI) Minimum Set-Aside is elected. As expected, the AI limits use the HUD…

Alabama Court Decision Requires that Restrictions on LIHTC Properties Must be Considered in Property Tax Assessments

February 16, 2020

On December 13, 2019, an Alabama Circuit Court ruled that use restrictions for Low-Income Housing Tax Credit (and other types of affordable housing) must be considered when assessing the value of properties for real estate tax purposes. The case is…

A New Tool for Landlords “Non-Smoking” Policies

February 15, 2020

One of the most difficult parts of implementing a non-smoking policy at an apartment community is enforcing compliance. Detection of smokers can be difficult and precisely locating the source of smoke even more so. Now, thanks to a New Hampshire…

Assistance Animal Requests Under the Fair Housing Act – HUD Issues Important New Guidance

February 8, 2020

On January 28, 2020, HUD issued FHEO Notice 2020-01. The subject of the Notice is: Assessing a Person’s Request to Have an Animal as a Reasonable Accommodation (RA) under the Fair Housing Act (FHA) Purpose of the Notice The Notice…

Special Needs Trust- Determination of Annual Income

February 1, 2020

Managers of affordable housing properties (e.g., Section 8 or LIHTC) must consider whether a household has assets that may contribute to the income of the household. Common assets include cash-on-hand, bank accounts, and retirement accounts. A less common type of…

IRS Issues Ruling on Determination of Income Limits for Average Income Minimum Set-Aside

January 31, 2020

On January 29, 2020, the IRS released Revenue Ruling 2020-4. This ruling outlines the requirements for determining the designated income limits under the Average Income (AI) Minimum Set-Aside. The Conference committee report for the Tax Reform Act of 1986 stated…

Excess Subsidy Repayment Agreements

January 25, 2020

When households receiving federal rental assistance – such as Section 8 – receive more assistance than they are entitled to based on their income, the residents are required to repay the excess amount. In order to ensure that these repayments…

2020 Mileage Rates

January 20, 2020

The IRS has issued the mileage rates for 2020, including the rate for miles driven for medical purposes. This is an important rate for Section 8 and Rural Development Properties since elderly households may deduct such mileage as a medical…

What Affordable Housing Managers Need to Know About Changes in Retirement Laws

January 5, 2020

Just before adjourning for the Christmas/New Year holiday, Congress included, and the President signed, the Setting Every Community Up for Retirement Enhancement (SECURE) Act in the federal government spending bill. This action provides the most significant changes in retirement law…

Rules for Electronic Waiting Lists at Section 8 Properties

January 4, 2020

In most cases, HUD projects are required to maintain waiting lists. A waiting list is a formal record of applicants for housing assistance that identifies the applicant’s name, date and time of application, selection preferences claimed, income category, and the…

Minimum Wage to Increase in Many Areas

January 1, 2020

In 2020, 21 states will increase their minimum wage requirements for workers beginning January 1, 2020 and Connecticut, Nevada, and Oregon (and possibly Delaware) will have increases later in the year. Affordable housing managers responsible for determining the income of…

Modular Construction – Another Component for Solving the Affordable Housing Crisis

December 30, 2019

There is an affordable housing crisis in the United States – of that there is no doubt. The reasons for the crisis are well known: a lack of will at the national level to provide necessary funding; a growing labor…

HUD Publishes 2020 OCAF Rent Adjustments

December 21, 2019

On November 22, 2019, the Department of Housing & Urban Development (HUD) published the Operating Cost Adjustment Factors (OCAF) for 2020. These factors apply to project-based assistance contracts issued under Section 8 of the Housing Act of 1937 (the “Section…

REAC Requirements for Emergency Call Systems

December 8, 2019

On October 11, 2019, the Department of Housing & Urban Development (HUD) issued Notice PIH 2019-25, which provides guidance on emergency call systems in public housing. The notice applies to all PHAs and localities that operate public housing. It should…

2020 Census – What Apartment Managers Need to Know

December 7, 2019

2020 will be a U.S. Census year. Every household will be required to answer a census questionnaire. This includes renters, so landlords and property managers need to know the rules. Questionnaires should be mailed to individual households by April 1,…

New Overtime Rule Issued by the Department of Labor

December 1, 2019

On September 24, 2019, the U.S. Department of Labor (DOL) announced a final rule to make 1.3 million American workers eligible for overtime pay under the Fair Labor Standards Act (FLSA). This is the first change in the overtime regulations…

Rent Guarantors – An Alternative to Rejecting Applicants

November 30, 2019

Owners and managers of LIHTC properties are often faced with applicants who have less than desirable credit, income below the minimum required by the landlord, or no financial history. The common practice in the industry is to reject such applicants,…

Novogradac Study Outlines Expected Income Increases

November 24, 2019

Novogradac & Company has released its study of expected increases in state median incomes for 2020 and 2021. Novogradac estimates that the U.S. median income will increase by just less than 4 percent in 2020 and 3.4 percent in 2021.…

HUD Takes Aggressive Position Regarding Online Verification of Assistance Animals

November 24, 2019

On November 6, 2019, the Department of Housing & Urban Development asked the Federal Trade Commission (FTC) and Bureau of Consumer Protection to investigate websites that sell assistance animal documentation. These certifications – which are almost always bogus – have…

Disability Payments- Calculating & Verifying Income

November 17, 2019

Some applicants and residents of affordable housing properties receive disability payments. These payments may be short-term (temporary) or long-term. Disability payments are intended to offset a reduction in wages for individuals who cannot work due to illness or injury. According…

Bedbugs – A Review of Current HUD Guidance

November 10, 2019

Bedbugs continue to rear their ugly little heads in all types of properties – from luxury hotels to affordable housing. Affordable housing managers are always concerned about what they can and cannot require of residents with regard to bedbug treatments.…

Principal or Primary Residence Issue for LIHTC Housing

November 9, 2019

Virtually all affordable housing programs, including Section 8 and the Low-Income Housing Tax Credit (LIHTC), require that the lessees of the unit use apartments being rented under the applicable program as a “principal residence”. Agencies have not provided a lot…

Special Considerations When Renting to Members of the Military and Veterans

November 3, 2019

While federal and state fair housing law does not ban discrimination based on military or veteran status, many state and local governments do. However, disabled veterans are protected (as is any disabled person) under federal fair housing law. Issues to…

Recent OIG Audits Show Importance of Training in Section 8 Requirements

November 2, 2019

The HUD Office of Inspector General (OIG) recently conducted two management agent audits that illustrate the importance of Section 8 training for management agents. In both cases, OIG recommended a significant repayment of assistance by the project owners due to…

Emancipated Minors and the Determination of Income on Affordable Housing Properties

October 27, 2019

The determination of income for affordable housing developments (e.g., HUD/Rural Development/ LIHTC) depends on whether a household member is an “adult” or a “dependent,” as defined by HUD regulation. The definition of these terms is found in HUD Handbook 4350.3…

Affordable Housing Credit Improvement Act Gaining Support

October 20, 2019

Since its introduction in June 2019, the Affordable Housing Credit Improvement Act has garnered more support and co-sponsorships from Congressional members. If enacted into law, the legislation will increase the annual allocation of low-income housing tax credits by 50 percent…

Social Security COLA – 2020

October 11, 2019

The federal government announced on October 10, 2019 that the Social Security Cost of Live Adjustment (COLA) for 2020 will be 1.6%. This increase will provide an additional $24 per month for the average retiree. This is significantly less than…

NCSHA Provides Updated LIHTC Compliance Forms

October 9, 2019

The National Council for State Housing Agencies (NCSHA) has released updated model compliance forms for housing credit developments. Virtually all Housing Credit agencies (HCAs) require Housing Credit development owners to use specific forms in their compliance reporting. NCSHA, in collaboration…

HUD Publishes Proposed Rule on Implementation of The Housing Opportunity Through Modernization Act of 2016 (HOTMA)

September 22, 2019

HUD published a proposed rule implementing The Housing Opportunity Through Modernization Act of 2016 (HOTMA) in the federal register on September 17, 2019. HOTMA was enacted on July 29, 2016. This rule would make sweeping changes to current HUD programs,…

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