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A. J. Johnson

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IRS Final Regulation on LIHTC Compliance Monitoring

February 24, 2019

On Tuesday, February 26, 2019, the IRS will publish in the Federal Register a final regulation on how state Housing Finance Agencies (HFAs) must monitor low-income housing tax credit (LIHTC) properties for compliance with the requirements of Section 42 of…

The Family Self-Sufficiency (FSS) Program – A Tool for Section 8 Owners

February 16, 2019

The Family Self-Sufficiency (FSS) Program was authorized by Congress in 1990 and is administered by the Department of Housing & Urban Development (HUD). FSS helps low-income families get out of poverty by combining financial education and coaching with savings incentives.…

How to Properly Apply the HUD Minimum Rent Requirements

February 10, 2019

Owners participating in HUD Multifamily Housing Programs (MFH) are sometimes unsure of exactly how to apply HUD’s minimum rent rules. HUD occupancy regulations require all households (except those with hardship exemptions) to pay a monthly rent of at least $25…

Major Fair Housing Settlement in Housing Accessibility Case

February 9, 2019

The Department of Justice (DOJ) has settled a major fair housing and American with Disabilities Act (ADA) lawsuit against Mid-America Apartment Communities, Inc., and Mid-America Apartments, LP for $11.3 million to resolve allegations that these owners failed to build 50…

HUD Resumption of Multifamily Production and Asset Management Activities

February 3, 2019

The HUD Office of Multifamily Housing (MFH) issued two memorandums on February 1, 2019 outlining the departments plan for prioritizing the backlog of work from the shutdown. One memo deals with the resumption of multifamily production activities and the other…

Affordable Senior Housing – Demand Exceeds Supply

February 2, 2019

The Harvard Joint Center for Housing Studies recently published Housing America’s Older Adults 2018. A highlight of the report is that over half of U.S. households are now headed by someone age 50 or older. This indicates that the living…

Exceptions to Criminal Screening Policies as a Reasonable Accommodation

January 28, 2019

A court case in early 2018 provides a case study in why a company’s criminal screening policies must sometimes be waived as a reasonable accommodation for a disabled person. The case was Simmons v. T.M. Associates Management, VA – February…

Reasonable Accommodation Requests for Assistance Animals – Detailed Guidance

January 27, 2019

Dealing with Reasonable Accommodation Requests for Assistance Animals One of the most contentious areas of fair housing law is the verification of requests for assistance animals – especially “emotional support animals,” or “ESAs.” This article is intended to address…

Affirmative Fair Housing Marketing Requirements for HOME Properties

January 26, 2019

The HOME final rule (24 CFR 92.351[a]) requires Participating Jurisdictions (PJs) and state recipients to develop, adopt, and follow written affirmative marketing procedures and requirements for rental and homebuyer projects containing five or more HOME-assisted units, regardless of the specific…

Exotic Emotional Support Animals – Court Case

January 21, 2019

The decision in a recent court case indicates that local laws against certain animals may not violate fair housing law. The case is Bauhman v. City of Elkhart, TX, March 2018. Facts of the Case 1. The city of Elkhart…

Documents Critical to the IRS Section 42 Audit Process

January 20, 2019

DDespite a recent increase in IRS audit activity relating to Low-Income Housing Tax Credit (LIHTC) projects, audits of such projects remain relatively rare. However, such audits do occur, and owners should ensure that record retention protocols include the documents that…

Monitoring Fees for HOME Projects

January 19, 2019

Agencies that administer HOME funds are known as Participating Jurisdictions or “PJs.” For HOME-assisted projects with commitments on or after August 23, 2013, the HOME program regulations [24 CFR 92.214(b)(1)(i)] allow PJs and state recipients to charge owners if rental…

Homeownership Options for the Low-Income Housing Tax Credit Program

January 15, 2019

It is not unusual to see Extended Use Agreements (EUAs) for Low-Income Housing Tax Credit (LIHTC) properties with a provision requiring a homeownership option for residents at the end of the 15-year tax credit compliance period. In many cases, developers…

Documentation of Child Custody and Support

January 15, 2019

One of the most vexing problems faced by managers of affordable housing is how to handle the counting of children when full time residence in a unit is not clear. There are many households with children in shared custody situations.…

Update on Criminal Screening for Occupancy

January 13, 2019

A recent fair housing settlement in New York City illustrates the importance of having screening policies for criminal records that only screen for criminal behavior that presents an actual threat to people or property. A New York City property management…

HUD Guidance on How Low Physical Inspection Scores Will be Handled

January 11, 2019

On October 29, 2018, HUD issued Notice H-2018-08 to provide guidance to HUD Multifamily staff regarding actions that should be taken when privately owned properties governed by various HUD housing programs score less than 60 or REAC inspections. The notice…

The Shutdown and Affordable Housing

January 6, 2019

As we enter the third week of the partial government shutdown, the impact is beginning to affect more than just the unfortunate federal workers who are not being paid. Some of America’s poorest families may soon be hit by the…

PHA Options in Repositioning Public Housing

January 5, 2019

On November 13, 2018, HUD’s Office of Public and Indian Housing (PIH) notified Public Housing Agencies (PHAs) of the options available relative to the repositioning of public housing projects. PHAs have three options relative to how they will ultimately deal…

HUD Issues Utility Allowance Factors for 2019

December 31, 2018

HUD published in the November 23, 2018 Federal Register the Utility Allowance Adjustment Factors (UAFs) for 2019. HUD permits owners to use these adjustment factors to adjust baseline utility allowances that were prepared in accordance with Housing Notice 2015-04. The…

Minimum Wage Update – 2019

December 30, 2018

As we enter 2019, the minimum wage will change in a number of states and localities. As affordable housing professionals, it is always a good idea to be aware of the minimum wage in the states in which you have…

Occupancy Standards and Fair Housing

December 2, 2018

Every owner and manager of multifamily properties must develop occupancy standards for their property. It is these standards that determine how many people may live in a unit. When deciding on an occupancy standard, the key question is always –…

Verifying the Income of Ride-Hailing Drivers

November 24, 2018

Verifying the Income of Ride-Hailing Drivers A recent study by the JP Morgan Chase Institute showed that from late 2013 to the Spring of 2018, there was a 2,000 percent increase in the number of Uber and Lyft drivers. This…

Dealing with “Zero Income” Households

November 18, 2018

While “zero income” households are rare on Low-Income Housing Tax Credit properties (since there is no rental assistance, income is required in order to pay the rent), such households are not uncommon on Section 8 properties or developments with Rural…

IRS 2018-2019 Priority Guidance Plan

November 10, 2018

On November 8, 2018, the IRS released a Priority Guidance Plan for the period July 1, 2018 – June 30, 2019. This plan outlines the areas that the IRS intends to provide formal guidance on for the rest of…

Environmental Issues Relating to Fair Housing

November 10, 2018

As we all know, the environment in which we live can impact our health and well-being. Bad water and bad air are known causes of health problems. What often goes unnoticed however is the environment within buildings – including homes.…

LIHTC Lease – Important Elements

November 3, 2018

Important Elements of Low-Income Housing Tax Credit Leases With the exception of having at least a six-month initial term when a household moves into a Low-Income Housing Tax Credit (LIHTC) property, the IRS has no specific requirements regarding leases.…

2019 Social Security COLA

October 12, 2018

The federal government announced on October 11, 2018 that the Social Security Cost of Live Adjustment (COLA) for 2019 will be 2.8%. This is the largest cost-of-living adjustment since 2012. The average SS check is $1,422 a month, meaning next…

Difference Between SSI and SSD

September 23, 2018

I recently received an email from a client who indicated that their corporate Section 8 department refused to accept a verification of Supplemental Security Income (SSI) for a person under age 65 as a verification of disability. The Section 8…

Final GAO Report on LIHTC Program – September 18, 2018

September 21, 2018

On September 18, 2018, the Government Accountability Office (GAO) issued its fourth and final report on the Low-Income Housing Tax Credit (LIHTC) program. This report is titled “Improved Data and Oversight Would Strengthen Cost Assessment and Fraud Risk Management.” The…

Premises Liability – When Property Owners are at Risk

August 25, 2018

One of the least understood risks that owners of multifamily properties face is the risk related to someone being injured due to a violent crime at their property. This short article is intended to provide a general overview of “premises…

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