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A. J. Johnson

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HUD Memo Regarding Occupancy Protections for Residents in LIHTC Projects

January 20, 2015

HUD Memo Regarding Occupancy Protections for Residents in LIHTC Projects On January 12, 2015, HUD sent a memorandum to HUD offices and contract administrators providing guidance on protection of tenants of HUD projects when Low-Income Housing Tax Credits (LIHTC)…

Documents to Retain for LIHTC Projects

January 16, 2015

Documents to Retain for Low-Income Housing Tax Credit Projects In September 2014, the IRS published the Audit Guide for Low-Income Housing Tax Credit Projects. This guide is intended to assist IRS agents during an examination of a Section 42…

Five Reasons to Go Smoke Free at Multifamily Properties

January 15, 2015

I have worked with a number of clients in assisting them to transition from smoking to non-smoking at their multifamily properties, and in all cases, the change has been positive – for both the owner and the residents. However, I…

HUD Proposed Regulation Regarding MOR Reviews and Vacancy Payments, January 14, 2015

January 14, 2015

HUD issued a proposed rule on January 14, 2015 titled “Streamlining Management & Occupancy Reviews for Section 8 Housing Assistance Programs and Amending Vacancy Payments for Section 8 and Section 162 Housing Assistance Programs.” This proposed regulation would amend existing…

HUD Proposed Rule on Multifamily Program Changes – January 6, 2015

January 9, 2015

HUD published a Proposed rule on 1/6/15, with comments due by March 9, 2015. The proposed rule makes some significant changes to operating procedures for many of HUD’s multifamily housing programs, including Section 8, Public Housing, and the Housing Choice…

Marijuana in Federally Assisted Projects – December 29, 2014 HUD Memo

January 7, 2015

On December 29, 2014, HUD sent a memorandum to all HUD offices regarding the use of Marijuana in multifamily assisted properties. The purpose of the memo was to clarify HUD’s position regarding renting to applicants who use marijuana and the…

Emergency Call Systems – HUD Guidance, October 31, 2014

December 29, 2014

Many owners and managers of HUD assisted properties have reported inconsistent guidance from HUD with regard to the type of emergency call systems required for elderly multifamily projects. It has been reported that in some cases, HUD staff have instructed…

Importance of Regular Review of Company Handbooks & Policies

December 27, 2014

Many property management companies create operations and compliance handbooks and policies to assist staff in understanding the company’s operational procedures. Once completed, the handbooks and policies are rarely (if ever) reviewed and updated. A periodic audit of a company’s employment…

Medical Marijuana as a Reasonable Accommodation

December 15, 2014

Forest City Residential Management v. Beasley, December 2014. In one of the first major cases relating to whether the use of medically prescribed marijuana must be permitted as a reasonable accommodation, a Michigan district court has ruled that such…

Waiting List Administration; HUD Notice H 2014-16

December 13, 2014

HUD issued Notice H 2014-16 on November 28, 2014 to provide guidance on the administration of waiting lists for HUD multifamily housing properties. The Notice provides no new requirements, but does provide additional options for waiting list administration. Owners…

2014 Year End Legislative Efforts

December 13, 2014

As always, the end of the year brings intense legislative activity in Washington. Recent actions affecting housing include the following: House Tax Extender Package The House passed the Tax Increase Prevention Act of 2014 on December 3, which will…

New Staff Member for A. J. Johnson Consulting

December 12, 2014

It is with great pleasure that I announce the addition of a new full time staff member to A. J. Johnson Consulting Services, Inc. Effective February 1, 2015, Linda Moss will be joining us as a Compliance Analyst. We…

Obtaining Approval for Security Officers at LIHTC Projects

December 7, 2014

If a multifamily project with Low-Income Housing Tax Credits (LIHTC) is experiencing issues with crime or security or is located in a high crime area, owners may want to house a security or police officer in one of the low-income…

Disaster Relief Rules – IRS Revenue Notice 2014-49

November 24, 2014

Disaster Relief Rules Revenue Procedure 2014-49 This IRS Revenue Procedure provides temporary relief from certain requirements of §42 of the Internal Revenue Code (the LIHTC Program) for Agencies and owners if certain areas have been impacted by a major…

“Indepent Living” Requirement Discriminatory

November 21, 2014

As if to put an exclamation point on its’ requirement that the ability to live independently not be a condition of apartment living, HUD has reached a conciliation agreement with Huntington Management, operators of five “independent living” properties known as…

HUD Stiffens Tenant Appeal Process Regarding Tenant Organizations

November 13, 2014

On September 14, 2014, HUD issued Notice H 2014-12 (Implementation of Tenant Participation Requirements in Accordance with 24 CFR Part 245). This Notice outlines available sanctions and monetary penalties as enforcement mechanisms when owners and managers violate HUD requirements relative…

Employee and Security Units – IRS Audit Guide (October 2014)

November 7, 2014

The recently released final Section 42 Audit Guide provides some interesting guidance relative to the treatment of employee and security units in a LIHTC project. The Guide confirms that the cost of such a unit is includable in eligible basis,…

Imputed Rate for Assets Change – Effective February 1, 2015

November 7, 2014

HUD issued Notice H 2014-15 on October 31, 2014 changing the imputed rate for assets from 2% to .06%. Beginning on February 1, 2015, HUD will annually publish the passbook savings rate (i.e., imputed rate) to be used for…

Citi Bank Loan Program

October 27, 2014

Developers looking to put together LIHTC deals in California, New York, Illinois, Massachusetts, Delaware, Washington DC, and Florida have a new financing option available to them. Citi Bank has released guidance for its new affordable rental-housing program – The…

Reduction in Rental Assistance for Section 515 Properties Reduce Pre-Payment Incentives

October 25, 2014

Federal funding reductions have significantly reduced the amount of rental assistance (RA) available for Rural Development Section 515 projects. As a result of this reduction, the Rural Development Service (RD) issued an Unnumbered Letter in July 2014 limiting the use…

Social Security COLA Announced

October 22, 2014

The federal government announced on October 22, 2014 that the Social Security Cost of Live Adjustment (COLA) for 2015 will be 1.7%. This will increase the monthly pension for the average retired worker by $22 per month. This is up from…

Tenant Selection Plan – Comprehensive Overview of HUD Requirements (October 2014)

October 17, 2014

Tenant Selection Plan – Comprehensive Overview of HUD Requirements (October 2014) Following are the basic required elements of HUD required Tenant Selection Plans. Managers and owners of properties requiring such plans should be aware of the following requirements: Income Limits…

HUD Makes Fair Housing Awards in 42 States and DC – October 15, 2014

October 15, 2014

The Department of Housing and Urban Development announced today (October 15, 2014) that it has awarded $38.3 million to more than 100 fair housing organizations in 43 states and the District of Columbia to address housing discrimination. The competitive grants…

Local Ordinance May Not Be Adequate for Refusal to Allow Certain Breeds as Companion Animals

October 9, 2014

In Warren v. Delvista Towers Condominium Association, Inc. July 2014, a resident sued a a community for failure to accommodate his disability by allowing him to keep a pit bull as an emotional support animal. Miami-Dade County prohibits pit bulls…

Supreme Court to Hear Disparate Impact Fair Housing Case

October 8, 2014

The United States Supreme Court has agreed to accept a petition to consider the case Texas Department of Housing & Community Affairs (TDHCA) v. Inclusive Communities. Background Inclusive Communities successfully argued to the lower courts that TDHCA allocated low-income…

Bill Requiring Increases in Minimum Rents for Public Housing, Vouchers and PB Section 8 Introduced in Congress

October 5, 2014

On September 18, 2014, H.R. 5632 was introduced in Congress in order to “reform and update the flat rent structure for public housing.” The bill has been referred to the House Committee on Financial Services, and has very little chance…

Familial Status Discrimination Case Illustrates Importance of Treatment of Children

October 3, 2014

On Friday, July 25, 2014, the United States Department of Justice announced an agreement with the owners of Woodland Garden Apartments in Fremont, California, settling allegations of discrimination against families with children. Under the Consent Order, the owners are required…

Changes in Administration of State Supplementary Payments (SSP)

October 1, 2014

Almost all states have a Supplementary Payments (SSP) Program, which supplements the Federal Supplemental Security benefit (SSI), which is administered by the Social Security Administration (SSA). In the past, many states had their program administered by the SSA, making it…

HUD Issues Notice Regarding LGBT Protections

September 16, 2014

On August 20, 2014, HUD published Notice PIH 2014-20 (HA), which provides details on the final rule published by HUD on February 3, 2012 guaranteeing equal access to housing in HUD programs regardless of Sexual Orientation or Gender Identity. This…

HUD REAC Rules Updated (August 12, 2014)

August 31, 2014

HUD released HUD Compilation Bulletin on August 12, 2014, providing updated guidance to REAC inspectors regarding when certain areas of properties are not to be inspected for REAC purposes and changing the way certain inspection elements will be reviewed. These…

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