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Guest Cards – A Fair Housing Best Practice

April 15, 2023

Housing operators are constantly looking for ways to prevent fair housing complaints, and when the inevitable complaints do come, managers need to apply an effective defense. One of the best (and most overlooked) tools for defense against a fair housing…

HOTMA Final Rule – Impact on the Housing Trust Fund (HTF) Program

March 25, 2023

The Department of Housing & Urban Development (HUD) has released a Final Rule implementing the Housing Opportunity Through Modernization Act of 2016 (HOTMA). This final rule was published in the Federal Register on February 14, 2023. With the exception of…

HOTMA Final Rule – Impact on the HOME Program

March 18, 2023

The Department of Housing & Urban Development (HUD) has released a Final Rule implementing the Housing Opportunity Through Modernization Act of 2016 (HOTMA). This final rule was published in the Federal Register on February 14, 2023. With the exception of…

HOTMA Final Rule – Limitation on Eligibility for Assistance Based on Assets

March 7, 2023

The Department of Housing & Urban Development (HUD) has released a Final Rule implementing the Housing Opportunity Through Modernization Act of 2016 (HOTMA). This final rule was published in the Federal Register on February 14, 2023. With the exception of…

Rural Development to Implement Model Lease for Section 515 Program

March 5, 2023

The Biden Administration has instructed the U.S. Department of Agriculture to institute a broad set of actions with regard to leases in the Rural Development (RD) Section 515 program. Specifically, RD is developing a “model” lease for the Section 515…

HOTMA Final Rule – Educational Assistance

March 4, 2023

The Department of Housing & Urban Development (HUD) has released a Final Rule implementing the Housing Opportunity Through Modernization Act of 2016 (HOTMA). This final rule was published in the Federal Register on February 14, 2023. With the exception of…

HOTMA Final Rule – New Rules on Hardship Exemptions

March 3, 2023

The Department of Housing & Urban Development (HUD) has released a Final Rule implementing the Housing Opportunity Through Modernization Act of 2016 (HOTMA). This final rule was published in the Federal Register on February 14, 2023. With the exception of…

Reminder- HUD CO Alarm Requirement in Effect

January 28, 2023

All HUD-assisted units with carbon monoxide sources must have carbon monoxide (CO) alarms or detectors installed. This requirement was in place as of December 27, 2022. The requirement applies to units covered under Public Housing, Project-Based Rental Assistance, Housing Choice…

Dealing with Drug Use Without Violating Fair Housing Law

January 22, 2023

Drug users are not a protected class under either federal or state fair housing laws. Drug abuse may result in criminal activity, violence, and property destruction. However, drug and alcohol dependency are also considered diseases and may be considered “disabilities”…

New Age Requirement for Required Minimum Distributions

January 13, 2023

Affordable housing managers know that regular distributions from retirement accounts are considered income, and when the distributions begin, the accounts are no longer considered assets. For this reason, knowing when a person is required to begin taking minimum distributions is…

Rural Development Suspends Interim Recertification Requirements for COLA Recipients

November 28, 2022

On November 10, 2022, the Rural Development Service released an Unnumbered Letter granting a temporary exception to tenant recertification requirements. On October 13, 2022, the Social Security Administration announced there will be an 8.7% increase in Social Security and Supplemental…

Service Coordinators – A Plus for Affordable Senior Housing

November 27, 2022

Multi-family properties with federal assistance can benefit greatly from the presence of an on-site service coordinator. These coordinators provide supportive services and act as advocates for vulnerable residents. These coordinators are members of the management team and play a significant…

Medical Expense Deduction – Still Confusing for Affordable Housing Managers

November 26, 2022

There are five possible deductions that owners of federally subsidized properties (e.g., Section 8 and Rural Development (RD) Rental Assistance) may subtract from annual income based on allowable family expenses and family characteristics. The remaining income, after these deductions are…

Average Income Final Regulation – The Available Unit Rule

November 4, 2022

A short time ago I posted an article providing an overview of the new IRS final regulation on the Average Income Set-Aside. I promised to post a series of articles detailing some of the more complex elements of the final…

Average Income Final Regulation – Qualified Groups of Units and the Applicable Fraction

October 29, 2022

A short time ago I posted an article providing an overview of the new IRS final regulation on the Average Income Set-Aside. I promised to post a series of articles detailing some of the more complex elements of the final…

IRS Provides Unexpected Extension of COVID Relief

October 15, 2022

The IRS has published Notice 2022-52, providing unexpected extensions to HFAs and LIHTC properties due to the COVID pandemic. The relief has been granted due to unavoidable labor and supply-chain disruptions delaying the construction, rehabilitation, and restoration of properties throughout…

HOME Funds Trigger Section 504 Compliance

August 27, 2022

One of the most common questions I get from clients with HOME funding for their project is whether Section 504 requirements apply when HOME funding is present. THE ANSWER IS ALMOST ALWAYS – YES! What is Section 504? Section 504…

HUD Issues Guidance on Solar Credits Impact on Resident Income and Project Utility Allowances

July 24, 2022

A growing number of states offer community solar programs. These programs give families who live in properties, including HUD-subsidized properties and private market rental units, access to renewable energy, even though the property itself may not be suitable for solar…

Eviction Due to Unauthorized Occupants Possible with Solid Documentation

June 4, 2022

In Montgomery Street Housing Urban Renewal, LLC v. Sheriff (June 2021), a property owner sued to evict a resident for lease violations relating to an unauthorized occupant. The New Jersey property, Montgomery Heights Apartments, is a Low-Income Housing Tax Credit…

The Affordable Connectivity Program Can Increase Internet Access for Low-Income Households

May 21, 2022

There is a new federal subsidy program that can help low-income families pay for Internet service. The Affordable Connectivity Program (ACP), offered through many Internet service providers, gives households $30 per month to cover the cost of internet service and…

HUD Stepping Up Efforts to Eliminate Housing Barriers Due to Criminal History

April 23, 2022

On April 12, 2022, HUD Secretary Marcia L. Fudge sent a memo to HUD staff under the subject heading, “Eliminating Barriers That May Unnecessarily Prevent Individuals with Criminal Histories from Participating in HUD Programs.” The memo stresses that individuals with…

Apartments & Pets – To Allow or Not

April 9, 2022

Owners of multifamily housing often struggle with whether or not to permit pets at their properties. Until recently, in some areas, it was nearly impossible to find apartment communities that permit pets. While that has begun to change, there are…

A Reminder to Owners of HUD Multifamily Properties Regarding Rising Utility Costs

March 12, 2022

Rapidly rising utility costs, especially for heat, are impacting residents of multifamily properties that are assisted under HUD programs. The U. S. Department of Energy is forecasting a three-year high in 2022 for average residential utility costs across the country.…

HUD Confirms That Child Tax Credit and Earned Income Tax Credit Are Not Income

March 5, 2022

New resources and information about the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) on now available on the HUD Exchange (www.hudexchange.info). The 2021 American Rescue Plan (ARP) temporarily increased the CTC from $2,000 per child to $3,000…

HUD Updates FAQ on Multifamily Housing Utility Allowance Requirements

February 27, 2022

The Department of Housing & Urban Development (HUD) has recently updated the Frequently Asked Questions Methodology for Completing a Multifamily Housing Utility Analysis. The original Notice on the UA requirement was Notice H 2015-04, which was published on June 22,…

Non-Retirement Investment Accounts – How to Treat for Affordable Housing Purposes

February 13, 2022

Most operators of affordable multifamily rental housing know that when regular payments are made from retirement accounts, those payments count as income, and any amounts remaining in the account are not counted as assets. But what about non-retirement investment accounts?…

IRS Issues Revenue Ruling on 4 Percent Tax Credit Floor

December 4, 2021

The IRS has issued Revenue Ruling 2021-20, providing clarity on when taxpayers may claim the fixed four percent credit for properties with tax-exempt bonds. The IRS addressed three separate issues relative to the 4% credit: Does the minimum 4% applicable…

Court Decision Affirms “Necessity Standard” for Reasonable Accommodations

November 27, 2021

In Carter v. Murray, 2021, WL 4192055, CIVIL ACTION NO 21-3289 (E.D. PA, September 14, 2021), the U.S. District Court for the Eastern District of Pennsylvania ruled that a tenant was not entitled to a reasonable accommodation of permanent relocation…

A 2023 Reduction in Income Limits is Possible

November 7, 2021

The Census Bureau has announced that it will not release a one-year American Community Survey (ACS) for 2020. Without this survey, the Department of Housing & Urban Development (HUD) will almost certainly be restricted to the use of the five-year…

Claiming Low-Income Housing Tax Credit on Temporary Transfer Unit

November 6, 2021

A question that clients often ask regarding moving tenants around on acquisition rehab projects is “Can we claim the credit on both units, even though the resident will only be in the temporary unit until the rehab is done on…

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