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A. J. Johnson

A. J. Johnson

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Update on State Positions Regarding Income Averaging

August 13, 2018

State Housing Finance Agencies (HFAs) continue to release information regarding how they will approach the new minimum set-aside election – the “Average Income” election. As of August 1, 2018, 20 HFAs have provided some guidance on how the new election…

HUD Publishes Notice on Implementation of Public Housing Income Limit

August 4, 2018

The Department of Housing & Urban Development (HUD) published a notice in the July 26, 2018 Federal Register implementing a statutory requirement from the Housing Opportunity Through Modernization Act of 2016 (HOTMA) that places a limit on the income of…

ADA Service Animal Guidance May be Instructive for Housing Providers

July 29, 2018

The Americans with Disabilities Act (ADA) requires that state and local government agencies and non-profits that provide goods or services to the public make “reasonable modifications” in policies, practices, or procedures when needed to accommodate persons with disabilities. This requirement…

Opportunity Zones Present New Development Opportunities

July 28, 2018

The Tax Cuts & Jobs Act of 2017 created something called “Opportunity Zones.” This is a brand new section of the federal tax code. An Opportunity Zone or “OZ” is an economically-distressed community where new investments may be eligible for…

Website Accessibility

July 20, 2018

In recent years, there has been a spate of litigation relating to website accessibility under the Americans with Disabilities Act (ADA). The ADA provides that no person shall be discriminated against in the full and equal enjoyment of the goods,…

States Begin Issuing Average Income Set-Aside Guidance

July 5, 2018

A number of states have now begun to issue guidance regarding the implementation of the “Average-Income” minimum set-aside test, which was signed into law as part of the Consolidated Appropriations Act of 2018. Eight states have provided formal guidance. Alaska…

Owner-Adopted Preferences in the RAD Program

July 3, 2018

On June 29, 2018, HUD published a list of allowable owner-adopted preferences for RAD properties, including direction for owners wanting to establish an owner-adopted elderly preference. The guidance highlights current HUD policy located in the RAD Notice (PIH 2012-32[HA] H-2017-03,…

Administration Proposing Significant Government Reorganization – Impact on Housing Programs

July 2, 2018

The administration recently released Delivering Government Solutions in the 21st Century: Reform Plan and Reorganization Recommendation. This series of recommendations would reorganize how the federal government works and includes a number of revisions that would impact the affordable housing community.…

NCSHA Letter to the IRS Regarding Average Income Minimum Set-Aside

June 23, 2018

On June 13, 2018, the National Council of State Housing Agencies (NCSHA) sent a letter to the Internal Revenue Service (IRS) outlining issues that Housing Finance Agencies (HFAs) will face with regard to the new Average Income Minimum Set-Aside and…

Emotional Support Animals – How “Necessary” Are They?

June 18, 2018

Every apartment manager is familiar with “Emotional Support Animals,” or “ESAs.” I would venture to say there are very few multi-family communities in existence today that don’t have at least one resident with an ESA. And my experience has shown…

IRS Releases Revised Form 8609 with Income Average Election

June 1, 2018

On May 31, 2018, the IRS released a revised Form 8609 adding a third minimum set-aside election – “Average Income”. The release did not include revised or updated Instructions for completion of the form. Owners intending to select the Average…

The State of Fair Housing – 2018

May 29, 2018

The National Fair Housing Alliance (NFHA) has published “Making Every Neighborhood a Place of Opportunity,” a report on the condition of fair housing in the United States in 2018. As much as anything else, the report highlights the Department of…

HUD Publishes 2018 HOME Rent and Income Limits

May 24, 2018

HUD has now published the 2018 income and rent limits for the HOME program. These limits are effective beginning June 1, 2018, and HOME grantees may not use the new rent and income limits until the effective date. Owners and…

HUD Proposed Legislation on Assisted Rents and Other Issues

May 1, 2018

On April 25, 2018, HUD sent a legislative proposal to Congress titled, “Making Affordable Housing Work Act of 2018.” The proposed legislation contains seven sections that, if passed into law by Congress and signed by the President, would significantly impact…

HUD-DOJ Initiative to Fight Sexual Harassment in Housing

April 29, 2018

The Department of Housing and Urban Development (HUD) and the Department of Justice (DOJ) have begun a nationwide initiative intended to combat sexual harassment in housing. This effort includes an interagency task force between HUD and DOJ, an outreach toolkit,…

Additional Guidance on the Income Average Test

April 13, 2018

In order to meet the minimum set-aside, if owners select the new Income Average test, at least 40% of the units in the project must have rents and incomes at the various designated unit income limits selected by the owner…

HUD Publishes 2018 Income Limits

March 31, 2018

On March 30, 2018, HUD published the 2018 income limits for HUD programs as well as for the Low-Income Housing Tax Credit and Tax-Exempt Bond programs. The limits are effective on April 1, 2018. The limits for the LIHTC and…

More Thoughts on the Income Average Test

March 27, 2018

This article is a follow up to the one I posted on March 26, 2018, relating to the Average Income Test which was included in the “Consolidated Appropriations Act, 2018,” as a third set-aside election for Low-Income Housing Tax Credit…

HUD Releases Updated Residents Rights and Responsibilities Brochure – March 2018

March 27, 2018

On March 8, 2018, HUD’s Office of Multifamily Housing Programs released an updated Resident Rights and Responsibilities Brochure. The brochure may be downloaded and printed at www.hud.gov/sites/dfiles/Housing/documents/resident_rights_brochure_8.pdf. This brochure provides a summary of key resident rights and responsibilities for…

Income Averaging Discussion and Examples

March 26, 2018

I posted an article on March 24, 2018, describing the two changes made to the Low-Income Housing Tax Credit (LIHTC) program by the “Consolidated Appropriations Act, 2018,” the increase in credits and the new “Average Income Test.” I want to…

Appropriations Act Contains Two Major Changes to the LIHTC Program

March 24, 2018

The “Consolidated Appropriations Act, 2018” was signed into law by the President on March 23, 2018. The law includes two major changes to the Low-Income Housing Tax Credit Program (IRC §42). Increase in Credits The amount of credit…

Congressional Spending Bill Keeps Funding for Many Housing Programs

March 23, 2018

Congress has approved a $1.3 trillion spending bill designed to provide funding for the federal government for the rest of the fiscal year, which ends September 30. The bill has been sent to the President’s desk for signature (although he…

HOME Funds and Affirmative Fair Housing Marketing Plans

March 17, 2018

In February 2018, the HUD Office of Community Planning and Development issued guidance relating to the requirement that projects funded with HOME funds have an Affirmative Fair Housing and Marketing Plan. This requirement is contained in the HOME final rule…

FAST Act Interim Final Rule Effective March 12, 2018

March 15, 2018

On December 12, 2017, HUD published an interim final rule in the Federal Register that amends the regulatory language for Public & Indian Housing PIH) and Multifamily Housing rental assistance programs. This interim rule went into effect on March 12,…

The Importance of Internal Controls

February 24, 2018

All executives are taught the importance of “internal controls.” Unfortunately, many executives don’t fully understand what is meant by the term “internal controls.” A recent HUD audit of a Section 8 project in Port Arthur, TX serves as a reminder…

Possible Work Requirements and Rent Changes for Affordable Housing

February 19, 2018

I have recently reviewed a draft, unpublished document dated January 17, 2018, from HUD that introduces minimum work requirements for some residents of assisted housing and raises rent for others. This seems to continue the pattern of requiring work…

Rental Assistance – Is It Income or Not?

January 27, 2018

After more than 40 years in the affordable housing business, I still occasionally get the question as to why federal rental assistance – such as Section 8 – is not counted as income. After all, it is a regular, recurring…

Civil Rights Lawsuit Brought Against America’s Largest Landlord for Criminal Screening Procedures

January 26, 2018

In a complaint filed in the United States District Court for the District of Columbia on December 12, 2017, the nonprofit Equal Rights Center (a Washington, DC civil rights group), and the Washington Lawyers Committee alleged that Mid-America Apartments policy…

Independent Contractor or Employee – How to Tell the Difference

January 17, 2018

Affordable housing property managers are required to verify the income of applicants and residents in order to determine both eligibility and (for some programs) rent. The most common type of income requiring verification is employment income and the most common…

Self-Employed Individuals in Affordable Housing Properties

January 14, 2018

One of the most difficult type of income to determine for managers of affordable housing rental properties (e.g. Section 8 or Low-Income Housing Tax Credit [LIHTC]) is self-employment income. Based on the number of issues we see when reviewing the…

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