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Disability Payments- Calculating & Verifying Income

November 17, 2019

Some applicants and residents of affordable housing properties receive disability payments. These payments may be short-term (temporary) or long-term. Disability payments are intended to offset a reduction in wages for individuals who cannot work due to illness or injury. According…

Bedbugs – A Review of Current HUD Guidance

November 10, 2019

Bedbugs continue to rear their ugly little heads in all types of properties – from luxury hotels to affordable housing. Affordable housing managers are always concerned about what they can and cannot require of residents with regard to bedbug treatments.…

Principal or Primary Residence Issue for LIHTC Housing

November 9, 2019

Virtually all affordable housing programs, including Section 8 and the Low-Income Housing Tax Credit (LIHTC), require that the lessees of the unit use apartments being rented under the applicable program as a “principal residence”. Agencies have not provided a lot…

Special Considerations When Renting to Members of the Military and Veterans

November 3, 2019

While federal and state fair housing law does not ban discrimination based on military or veteran status, many state and local governments do. However, disabled veterans are protected (as is any disabled person) under federal fair housing law. Issues to…

Emancipated Minors and the Determination of Income on Affordable Housing Properties

October 27, 2019

The determination of income for affordable housing developments (e.g., HUD/Rural Development/ LIHTC) depends on whether a household member is an “adult” or a “dependent,” as defined by HUD regulation. The definition of these terms is found in HUD Handbook 4350.3…

Social Security COLA – 2020

October 11, 2019

The federal government announced on October 10, 2019 that the Social Security Cost of Live Adjustment (COLA) for 2020 will be 1.6%. This increase will provide an additional $24 per month for the average retiree. This is significantly less than…

NCSHA Provides Updated LIHTC Compliance Forms

October 9, 2019

The National Council for State Housing Agencies (NCSHA) has released updated model compliance forms for housing credit developments. Virtually all Housing Credit agencies (HCAs) require Housing Credit development owners to use specific forms in their compliance reporting. NCSHA, in collaboration…

Fair Housing Definition of a Dwelling

September 22, 2019

The Fair Housing Act (FHA) applies to “dwellings.” This raises the technical issue of what a dwelling is. The answer is not as simple as one may think. The statute’s definition of a dwelling includes any building occupied or intended…

Information to Obtain When Assuming Management of a LIHTC Property

September 15, 2019

When assuming management of a Low-Income Housing Tax Credit (LIHTC) property during the 15-year compliance period, there is critical information the new agent must have. The following list provides a good starting point for the information to obtain when assuming…

Determining the Income of LIHTC Applicants and Residents

September 14, 2019

The determination of income is a primary requirement when determining the eligibility of applicants and residents at Low-Income Housing Tax Credit (LIHTC) Properties. While individual Housing Finance Agencies (HFAs) have their own requirements relating to the determination of income, there…

RAD First Component – Eligibility, Conversion Requirements, and Financing Considerations

September 9, 2019

On September 5, 2019, HUD issued Notice H-2019-09, PIH-2019-23 (HA), Rental Assistance Demonstration – Final Implementation, Revision 4. This revised notice provides program instructions for the Rental Assistance Demonstration (RAD) Program, including eligibility and selection criteria. Background The RAD program…

Dealing with Resident Owned Real Estate at Affordable Housing Properties

September 7, 2019

When determining the income of a household at an affordable housing complex with income limitations, the valuation of resident owned assets and the calculation of real or possible income from those assets is critical to the process. Assets are items…

Hoarding – Reasonable Accommodation Requirements Under Fair Housing Law

September 1, 2019

A “reasonable accommodation” (RA) is the request for a waiver of a policy, practice, or procedure of a housing provider in order to provide equal access and opportunity for people with disabilities. Any request for an RA must be approved…

Rental Application/Lease/Lease Riders – Critical LIHTC Documents

August 31, 2019

It is important that early in the application process, prospects be advised of the applicable income limits and student requirements for occupancy in a Low-Income Housing Tax Credit (LIHTC) property. Management should explain that the total gross income of all…

HUD Issues Guidance on Tenant Notification Requirements Relating to Physical Inspections

August 27, 2019

On July 8, 2019, the Department of Housing & Urban Development (HUD) issued a memo for HUD staff and multifamily owners and agents (O/As) clarifying owner responsibilities to notify residents in advance of physical inspections and to make final inspection…

Resident Protections in a Low-Income Housing Tax Credit Property — “Good Cause” Termination

August 24, 2019

Every Section 42 Low-Income Housing Tax Credit (LIHTC) property must have a recorded Extended Use Agreement (EUA). One of the requirements of an EUA is that it prohibit eviction or termination of occupancy by a low-income resident without “good cause.”…

Resident Manager Unit in a LIHTC Property – A Refresher

August 17, 2019

The ability of a Low-Income Housing Tax Credit (LIHTC) project to utilize an apartment as a resident manager unit was established by IRS Revenue Ruling 92-61 – way back in 1992. The ruling established that the adjusted basis of a…

Responsibilities of Owners of HUD-Assisted Properties Before and After Natural Disasters

August 10, 2019

Now that we are in hurricane season, it is a good idea for all properties to assess preparedness for storms and other natural disasters. While this is recommended for any property, it is a requirement for HUD-assisted projects. The Department…

Online Certification May Not Always be Adequate Verification of Disability

August 4, 2019

A recent court case demonstrates that online verifications of disability may not always be adequate for purposes of proving the need for a reasonable accommodation under fair housing law. The case is Fitzsimmons v. Sand & Sea Homeowners Association, November…

Children in Common Areas – Fair Housing Settlement Shows Importance of Sound Policy

July 29, 2019

On July 23, 2019, the U.S. Department of Housing & Urban Development (HUD) approved a Conciliation Agreement between Meadow Ridge IV, LLC and ConAm Management Corp., the owner and manager of Meadow Ridge Apartments in Las Vegas, NV, and a…

Family Members of Live-in Aides- New HUD Guidance

July 25, 2019

In the past, HUD guidance has indicated that family members of live-in aides could not reside with the aide in housing developments assisted under the HUD Multifamily Housing Division. This includes project-based rental assistance programs such as Section 8, as…

IRS Chief Counsel Memorandum Takes Hard Line on LIHTC Common Area Noncompliance

July 6, 2019

An IRS Chief Counsel Memorandum issued on May 22, 2019 takes a hard line regarding the noncompliance of common area for purposes of §42 Low-Income Housing Credit. The memo was prepared by the Office of Associate Chief Counsel (Passthroughs and…

IRS Issues New Guidance on General Public Use Rules – Revenue Procedure 2019-17

June 23, 2019

The IRS has issued Revenue Procedure 2019-17, which allows projects with tax-exempt bonds issued on or after April 3, 2019, to apply the general public use rules for residential rental housing in the same manner the rules are applied for…

2019 HOME Income Limits

June 16, 2019

HUD has published the 2019 HOME income limits. The limits will be effective on June 28, 2019. Until that date, HOME fund recipients should continue to use the 2018 HOME income limits, which were published on June 1, 2018. The…

Criminal Background Checks and Fair Housing

June 15, 2019

The federal Department of Housing & Urban Development (HUD) and the Department of Justice (DOJ) are making investigations of fair housing violations in three specific areas a priority for 2019. These areas are sexual harassment, tenant-on-tenant harassment, and policies…

Priority Fair Housing Issue Number Two – Tenant-on-Tenant Harassment

June 10, 2019

The federal Department of Housing & Urban Development (HUD) and the Department of Justice (DOJ) are making investigations of fair housing violations in three specific areas a priority for 2019. Those areas are sexual harassment, tenant-on-tenant harassment, and policies…

Sexual Harassment – A Fair Housing Priority

June 2, 2019

The federal Department of Housing & Urban Development (HUD) and the Department of Justice (DOJ) are making investigations of fair housing violations in three specific areas a priority for 2019. Those areas are sexual harassment, tenant-on-tenant harassment, and policies…

Federal Court Holds Tenant Screening Services Subject to the Fair Housing Act

May 19, 2019

In a landmark civil rights decision (Connecticut Fair Housing Center, et al. v. CoreLogic Rental Property Solutions, LLC, March 25, 2019), the Connecticut federal District Court established for the first time that consumer reporting agencies must comply with the Fair…

New HUD Income Exclusion – ABLE Accounts

May 18, 2019

On May 6, 2019, HUD published Notice H-2019-06 and Notice PIH 2019-09, Treatment of ABLE Accounts in HUD-Assisted Programs. Background The Achieving Better Life Experience (ABLE) Act was signed into law on December 19, 2014. The ABLE Act allows states…

Non-Profit Right of First Refusal on Section 42 Project – Relevant Court Case

May 11, 2019

Many nonprofit organizations participate in the development of Section 42 Low-Income Housing Tax Credit (LIHTC) properties on the condition that the nonprofit has a right of first refusal to purchase the project at the end of the Section 42 compliance…

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