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A. J. Johnson

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Requiring Adult Supervision of Children May Cross the Line to a Fair Housing Violation

April 25, 2014

A recent fair housing court case (Dumas v. Sunview Properties, February 2014) has clarified that while it is OK to have property rules relating to the safety of children, rules relating to behavior and rules requiring unreasonable supervision of children…

Casual Statements Can be Deemed Discriminatory

April 19, 2014

Leasing staff and others working at apartment communities should be warned about making small talk with applicants at their properties. A Massachusetts real estate broker recently learned the hard way that even a casual remark – with no ill intent…

HUD Releases 2014 HOME Income and Rent Limits

April 18, 2014

HUD has released the 2014 Income and Rent limits for the HOME program. The new limits will be effective May 1, 2014. To obtain the new limits go to www.onecpd.info/news/2014-home-income-and-rent-limits-published/. Keep in mind that if HOME funds are combined with…

Hoarding is Now Considered a Disability

April 12, 2014

The American Psychiatric Association (APA) has recently announced that compulsive hoarding is now considered a mental disability, and is therefore protected under the nation’s various disability related laws; this includes the fair housing laws under The Civil Rights Act of…

HUD to Ease PHA Income Verification Requirements

April 11, 2014

HUD is in the process of preparing new rules that will allow public housing authorities (PHAs) to drastically alter the income verification requirements for public housing and Section 8 Voucher tenants. These changes could impact owners of Low-Income Housing Tax…

DOJ Aggressively Pursuing Accessibility Cases

March 8, 2014

On February 24, 2014, the Department of Justice announced that a federal district court in Jackson, MS approved a settlement of a DOJ lawsuit against the original owners and developers of nine apartment complexes in Mississippi, Louisiana and Tennessee. The…

Draft House Tax Reform Act of 2014 Retains (but changes) LIHTC Program

February 28, 2014

On February 26, 2014, the House Ways & Means Committee under Chairman David Camp released a discussion draft Tax Reform Act of 2014. While tax reform almost certainly not going to happen in 2014, this draft proposal is significant in…

Social Security Administration Changes Rules Regarding Proof of Income Letters

February 28, 2014

On February 4, 2014, the Social Security Administration (SSA) announced that effective October 1, 2014, SSA field offices will no longer offer benefit verification letters. Budget cuts are responsible for this cutback. Households needing verification of SS benefits should now…

2014 Appropriations Act Makes Changes to Program Rules

February 23, 2014

The President signed the 2014 Omnibus Appropriations Act into law on January 17, 2014. In addition to funding for the Nation’s various housing programs, the Act also made some substantive changes to the law relative to Housing Choice Vouchers and…

Farm Bill Protects Rural Area Designation

February 5, 2014

After a three-year struggle, the Farm Bill (H.R. 2642) was finally passed by Congress on February 4, 2014, and will now go to the President, who has indicated that he will sign the bill into law. The 357 page bill…

Domestic Violence Policies

February 4, 2014

Public housing and assisted housing communities (as well as Low-Income Housing Tax Credit [LIHTC] projects) are subject to the requirements of the Violence Against Women’s Act (VAWA). HUD is currently developing regulations to implement the VAWA provisions passed into law…

Nonprofit Set-Aside Issues for LIHTC Properties

January 2, 2014

IRC §42(h)(5) requires that a portion of each state’s annual credit ceiling be set aside for allocation to projects involving qualified nonprofit organizations. Specifically, at least 10% of the state’s allocable credit must be set-aside for a nonprofit pool. …

HUD Amends Verification Requirements

December 26, 2013

On December 10, 2013, HUD put online a revised transmittal for Handbook 4350.3, Chg. 4. It provided clarification for verification techniques – primarily those relating to EIV disputes and discrepancies. There is also an important change to Appendix 3, Acceptable…

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…

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