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A. J. Johnson

A. J. Johnson

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Social Security Enhanced Security for Obtaining SS Information

June 4, 2017

Beginning June 10, 2017, the Social Security Administration (SSA) will add a second method to check the identification of anyone signing onto their “My Social Security” account. This will be in addition to the first layer of security, the account…

Equal Access to Housing for HUD Assisted Housing Projects

June 2, 2017

Equal Access to Housing for HUD Assisted Housing Projects As many managers of HUD-Assisted properties already know, HUD prohibits discrimination against individuals based on their gender identity. HUD published a final rule entitled “Equal Access in Accordance with an Individual’s…

A Refresher on Low-Income Housing Tax Credit Multiple Building Projects and the Decision Regarding Deferral of Credits

May 30, 2017

Multiple Building Projects By now, virtually all tax-credit professionals know that a “project” has a different meaning for purposes of Section 42 of the Internal Revenue Code than it does for other operators of multifamily housing. Generally, a project consists…

Recent HUD Appropriations Bill Changes Procedures for Failed REAC Inspections

May 29, 2017

In early May, 2017, the President signed a new HUD appropriations bill providing funding for HUD programs. While appropriation bills normally relate only to funding and do not change program regulations, Section 223 of the Bill outlined some programmatic changes…

Effect of White House Budget on HUD Programs

May 27, 2017

On May 23, 2017, the President released its 2018 Budget Proposal, which includes a 13% ($6.2 billion) cut in HUD funding. HUD’s largest single expense item, the Housing Choice Voucher, is maintained at its current level, but only be increasing…

Information Contained on Legitimate Pay Stubs

May 23, 2017

We are now working in an environment where just about anything can be obtained or created online, including fake pay stubs. We all recognize that pay stubs are the primary form of verification for employment income. However, I’ve been noticing…

Status of Tax Reform – April 2017

April 30, 2017

For those of us who are heavily involved in the Low-Income Housing Tax Credit (LIHTC) Program, the future of tax reform is not just a casual interest. The survival of the Section 42 Program is by no means assured in…

Executive Order May be a Threat to the Rural Development Service

April 28, 2017

On March 13, 2017, the President signed Executive Order 13781. This order instructs the Director of the Office of Management and Budget (OMB) to propose a plan to reorganize government functions and eliminate unnecessary agencies, components of agencies, and agency…

Liability Under the Fair Housing Act

April 22, 2017

In many of my fair housing classes, the question often arises as to who is liable for a violation of fair housing law. The question is asked both my managers (who wonder if they can be held personally liable) and…

Problem with the 2017 MTSP Income Limits

April 19, 2017

On April 14, 2017, HUD published the 2017 income limits for HUD programs as well as for the Low-Income Housing Tax Credit and Tax-Exempt Bond programs. The limits for the LIHTC and Bond projects are published separately from the limits…

HUD Publishes 2017 Income Limits

April 14, 2017

On April 14, 2017, HUD published the 2017 income limits for HUD programs as well as for the Low-Income Housing Tax Credit and Tax-Exempt Bond programs. The limits for the LIHTC and Bond projects are published separately from the limits…

Proposed Changes to LIHTC Program

April 2, 2017

On July 14, 2016, the “Affordable Housing Credit Improvement Act of 2016” was introduced in the Senate by Senators Cantwell, Hatch, and Wyden. It would make a number of changes to the Low-Income Housing Tax Credit (LIHTC) program, including (1)…

National Origin – Still a Protected Class

April 1, 2017

Despite all the hyperbolic language regarding Muslim bans swamping the airways and newspapers, individuals are still protected from housing discrimination on the basis of their national origin. Recent efforts by the new administration to control entry into the United States…

Recognizing Drug Operations in Apartment Communities

March 19, 2017

Train Management Staff to Recognize Drug Operations The manufacture of methamphetamines in apartment communities if becoming more common each year. Makeshift meth labs are discovered with increasing frequency in apartment communities, and the residual effects on the property can…

FY 2018 Presidential Budget Proposals for HUD

March 14, 2017

FY 2018 Presidential Budget Proposals for HUD The new President has presented his preliminary budget numbers to Congress and if accepted as final numbers, many HUD programs will be devastated as the result of a $6 billion cut. Following…

GAO Report – The Role of Syndicators in the LIHTC Program – February 16, 2017

March 4, 2017

GAO Report – The Role of Syndicators in the LIHTC Program – February 16, 2017 The Government Accountability Office (GAO) has issued its third and final report on the Low-Income Housing Tax Credit Program (LIHTC). The two prior GAO…

Small Area Fair Market Rents (SAFMRs)

February 26, 2017

Small Area Fair Market Rents (SAFMRs) HUD publishes fair market rents for all areas of the nation. Public Housing Agencies (PHAs) use fair market rents as a guideline when determining payment standards for the Housing Choice Voucher (HCV) program.…

Occupancy Rights of Domestic Violence Victims Who Are Not the Eligible Voucher Holder

February 25, 2017

Reminder to PHAs: Domestic Violence Victims May Have Occupancy Rights Even if They are not the Eligible Tenant Under the Voucher Program A recent court case (A. S. v. Been, January 2017) serves as a reminder to PHAs that…

Owner Verification Procedures When Noncitizens Claim VAWA Protection

February 20, 2017

Verification Procedures When Noncitizens Claim VAWA Protection On December 15, 2016, HUD issued a General Counsel Memo. This memo relates to noncitizen “self-petitioner” procedures under the Violence Against Women Act (VAWA), and applies to public housing, Housing Choice Vouchers…

Determining the Income of Independent Contractors

February 18, 2017

Determining the Income of Independent Contractors It is becoming more and more common for managers of affordable housing to have to verify the income of “gig” workers. Sometimes called “giggers,” these are people who work out flexible work arrangements…

VAWA Deadline Reminders

February 14, 2017

VAWA Deadline Reminders As I noted in a prior client memo, HUD has released four Model forms for use on HUD properties to ensure compliance with requirements of the Violence Against Women Act (VAWA). These model forms are Appendix…

Using PHA Income Verification for Section 8 Voucher Residents on LIHTC Projects

February 12, 2017

IRS Regulation 1.42-5 states that the requirement to verify the income of a low-income resident with a Section 8 voucher at a tax credit property is satisfied “if the public housing authority provides a statement to the building’s owner declaring…

Notice H 2016-18, Automating Capital Needs Assessments

January 12, 2017

HUD published Notice H 2016-18 on December 30, 2016, “Implementation of the CNA e Tool: Automating Capital Needs Assessments (CNA), and Related Policy Changes.” The Notice introduces new Capital Needs Assessment tools, and consolidates and aligns due diligence methods…

Costs and Burdens Relating to VAWA

January 8, 2017

The cost of implementing the VAWA 2013 requirements can be significant. The HUD final rule provides guidance on who will bear the cost of implementation. One issue is who bears the cost if a property is damaged due to a…

Some States and Localities Increase the Minimum Wage for 2017

January 4, 2017

Managers of affordable housing properties spend a good deal of their time verifying and calculating income. All managers are aware that most workers must be paid a minimum wage (some workers are exempt from the requirement). While the federal minimum…

IRS Notice 2016-77 – QAP Preferences Relative to Community Revitilization Plans

January 2, 2017

On December 27, 2016, the IRS issued Notice 2016-77. This Notice relates to the issue of satisfying the required Qualified Allocation Plan (QAP) preference relating to Community Revitalization Plans. Background Section 42 (m) of the Internal Revenue Code (the…

2017 Increase in Pay for Active Duty Military

January 2, 2017

The National Defense Authorization Act of 2017 has been signed into law by President Obama and effective January 1, 2017, all active duty and active reservists will receive an increase of 2.1% in base pay. This increase will appear in the…

IRS Revenue Ruling 2016-29 – Regarding Qualified Allocation Plan Provisions Relating to Local Approval of LIHTC Allocations

December 29, 2016

This recently issued Revenue Ruling addresses the issue of whether or not Section 42 of the Internal Revenue Code requires or even encourages Housing Finance Agencies (HFAs) to reject proposals for low-income housing tax credit (LIHTC) developments if the locality…

VAWA Emergency Transfer, Documentation, and Lease Bifurcation Requirements

December 23, 2016

The most detailed and complex part of the HUD Final Rule on VAWA deals with the emergency transfer requirements. This article focuses primarily on those requirements. I am also covering basic documentation and verification requirements, as well as final rule…

HUD Issues Correction Regarding VAWA Model Forms

December 21, 2016

A few days ago I sent a memo to clients regarding the availability of four model VAWA forms on HUD’s web page. Those forms are now available on HUDClips. The forms are: Notice of Occupancy Rights Under VAWA; Model Emergency…

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