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A. J. Johnson

A. J. Johnson

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Fair Housing Reminders During the Holidays

November 11, 2013

As we approach the holiday season, it is important to remember the fair housing prohibition against discrimination on the basis of religion. There is absolutely nothing wrong with being festive during the holidays. Seasonal decorations do not have to be…

Developer Fees in Eligible Basis

November 2, 2013

The most important calculation in the LIHTC program – at least in terms of credit generation – is qualified basis. Qualified basis is directly related to the amount of eligible basis (Eligible Basis times Applicable Fraction = Qualified Basis). So,…

Small HUD Projects Get Break from Financial Reporting

October 21, 2013

HUD projects that receive less than $500,000 in total federal financial assistance annually no longer have to have full financial audits performed. HUD Notice 2013-23 eliminates the audit requirement for these projects regardless of existing regulatory provisions. Owners of such…

HUD Mortgage Insurance Premiums for LIHTC Projects

September 26, 2013

HUD published a Notice in the Federal Register on September 26, 2013, clarifying that conventional or FHA-insured projects with existing LIHTC’s, and other affordable projects that meet LIHTC affordability criteria are eligible for the LIHTC Mortgage Insurance Premium (MIP) rate.…

Landmark Fair Housing Decision Goes Against Hazleton, PA

September 15, 2013

On July 26, 2013, a Federal District court issued an opinion that may once and for all answer the question as to whether local governments can enforce laws that relate to the immigration status of individuals. The case is Lozano…

HUD Changes to Appendix 3 of 4350.3 – Acceptable Forms of Verification

September 4, 2013

Along with the recent publication of Change 4 to HUD Handbook 4350.3, HUD also amended Appendix 3, Acceptable Forms of Verification. Some of the changes are worth noting, as follows (changes are shown in parentheses): Assets disposed of for less…

IRS Approves Same-Sex Marriage for Tax Purposes

August 29, 2013

Yesterday, I sent you an email that the IRS had not yet decided whether to recognize same-sex marriage for purposes of filing a joint federal tax return. I also indicated that I believed this was clearly contrary to the Supreme…

HUD Notice on Violence Against Women Act of 2013

August 9, 2013

On August 6, 2013, HUD published a Notice titled The Violence Against Women Reauthorization Act of 2013 (VAWA 2013): Overview of Applicability to HUD Programs. This notice provides an overview of the applicability to HUD programs of the recently enacted…

HUD Notice H2013-21, Implementation and Approval of Owner Adopted Admissions Preferences for Individuals or Families Experiencing Homelessness

August 2, 2013

This Notice provides guidance on the circumstances under which owners of HUD-assisted properties may adopt admissions preferences for the homeless. Prior to this Notice, HUD had strictly interpreted 24 CFR §5.655(c)(1) – (c)(5) to mean that project owners were limited…

HUD Final Rule on HOME Program

August 2, 2013

On July 24, 2013, HUD published a final rule on the HOME program. Most provisions of the rule are effective for properties that receive HOME funds on or after August 23, 2013. Properties already operating under the HOME program, or…

HOME Program Rent Decreases

July 29, 2013

As you probably know by now if you are operating properties that utilize HOME funds, HUD has released the 2013 HOME rent limits. You may also be aware that due to calculation errors by HUD in earlier years, dating back…

HUD Final Smoke Detector Rule for Section 202 and 811 Projects

July 21, 2013

HUD has issued a final rule, effective July 22, 2013, requiring that smoke detectors be installed in all subsidized housing for the elderly and disabled. The final rule, published in the July 20, 2013 Federal Register, requires that smoke detectors…

Senate Bill Amending the Fair Housing Act Introduced

July 14, 2013

S. 1242, A Bill to Amend the Fair Housing Act, and for Other Purposes, was introduced in the Senate on June 27, 2013, and was referred to the Senate Judiciary Committee. The short title of the bill is “Housing Opportunities…

Rural Area Definition – Legislative Update (June 28, 2013)

June 29, 2013

Approximately 900 communities across the United States that are currently considered “rural” for purposes of United Stated Department of Agriculture (USDA) programs are in danger of losing their rural designation. The communities will no longer be considered rural based on…

Effect of Supreme Court Ruling on DOMA on LIHTC Student Rule

June 27, 2013

As you probably know by now, on June 26, 2013 the Supreme Court declared that Section Three of The Defense of Marriage Act (DOMA) is unconstitutional. This decision basically holds that persons of the same sex who are legally married…

SAVE System Code 33

June 26, 2013

SAVE System Code 33 All HUD multifamily housing managers are required to use the Systematic Alien Verification for Entitlements (SAVE) system to check the legal background of individuals applying for housing assistance. In June 2012, the Department of Homeland…

HUD Proposed Rule on Pet Deposits for Multifamily Housing

June 22, 2013

HUD published a proposed rule in the Federal Register on May 24, 2013 that would change the requirements for owners of HUD-assisted multifamily housing relative to the collection of pet deposits on projects intended for occupancy by elderly or disabled…

UPCS Changes to Fence and Gate Inspection Standards

May 23, 2013

One significant change in the Uniform Physical Condition Standard (UPCS) that became effective on January 1, 2013 relates to the way inspectors will assess deficiencies in fencing and gates. Such findings have been very common in REAC and State monitoring…

Processing Requests for Minimum Rent Exemption

May 23, 2013

Sequestration is resulting in considerable financial difficulty for thousands of people. In California, federal unemployment benefits have been cut for more than 400,000 people. 70,000 children in the head start program will have meals reduced, as will seniors and low-income…

More Focus on National Origin Discrimination Since Boston Marathon Attack

May 19, 2013

Since the bombing attack at the Boston Marathon in April 2013, social media sites have been swamped with anti-Islamic sentiment. This is reminiscent of what happened just after the 9/11 terrorist attacks. In the years since 9/11, the Department of…

Importance of Updating the Affirmative Fair Housing Marketing Plan

May 13, 2013

While all federally assisted housing properties are required to update their Affirmative Fair Housing Marketing Plans (AFHMP) at least every five years, HUD requires that the Plan actually reflect the marketing realities of your community. For this reason, it is…

HUD Provides Updated Guidance Regarding Assistance Animals

May 11, 2013

HUD Issues Notice Clarifying Service Animal Issues On April 25, 2013, HUD issues FHEO Notice 2013-01, Service Animals and Assistance Animals for People with Disabilities in Housing and HUD-Funded Programs. This notice provides additional clarification of housing provider obligations…

New Veteran Preference for New Jersey Properties

April 27, 2013

Governor Chris Christie recently signed into law legislation that will expand access to affordable housing for New Jersey veterans. This new program allows owners of affordable housing to give a preference for veterans by entering into a preference agreement with…

Section 202 Projects May be Impacted by Changes to HUD HAP Contract Renewal Procedure

April 22, 2013

Several changes made to the housing assistance payments (HAP) contract renewal process may have a significant impact on owners of Section 202 properties. These changes were outlined in Notice 2012-08 and clarified on the Frequently Asked Questions section of the…

Administration Proposals to Improve the LIHTC Program

April 21, 2013

As part of its 2014 budget, the Obama Administration has made five specific proposals relative to the LIHTC Program. Allow states to convert some of their authority relating to the issuance of tax-exempt bonds into additional tax credits. (This…

Bipartisan Policy Center Recommendations

April 16, 2013

The Bipartisan Policy Center was founded in 2007 by former Senate Majority Leaders Howard Baker, Tom Daschle, Bob Dole, and George Mitchell for the purpose of developing and recommending sound solutions to national problems. The Center has recently issued a…

A Primer on Pre-Paid Debit Cards

April 6, 2013

Federal and State governments are rapidly moving away from cash and paper checks and going to the use of pre-paid cards. Such cards enable consumers without bank accounts to benefit from the shift to electronic transactions from cash and to…

Calculating Income When There is a Combination of Employment & Unemployment

March 31, 2013

Calculating Income When There is a Combination of Employment & Unemployment Managers of affordable housing properties are often unsure of how to calculate an applicant’s income when it is expected that the applicant will receive income from both employment…

Handling Income from Investment Accounts

March 18, 2013

As most operators of housing under HUD, Rural Development, and the Low-Income Housing Tax Credit Programs know, there is a considerable difference of opinion in our industry regarding the handling of investment accounts from which regular distributions are taken. This…

HUD and HHD Introduce New Program for Disabled Low-Income

March 7, 2013

On February 12, 2013, the Department of Housing & Urban Development (HUD) and the Department of Health & Human Services (HHS) announced $98 million for 13 state agencies to provide rental assistance to persons with…

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