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Executive Order May be a Threat to the Rural Development Service

April 28, 2017

On March 13, 2017, the President signed Executive Order 13781. This order instructs the Director of the Office of Management and Budget (OMB) to propose a plan to reorganize government functions and eliminate unnecessary agencies, components of agencies, and agency…

Problem with the 2017 MTSP Income Limits

April 19, 2017

On April 14, 2017, HUD published the 2017 income limits for HUD programs as well as for the Low-Income Housing Tax Credit and Tax-Exempt Bond programs. The limits for the LIHTC and Bond projects are published separately from the limits…

HUD Publishes 2017 Income Limits

April 14, 2017

On April 14, 2017, HUD published the 2017 income limits for HUD programs as well as for the Low-Income Housing Tax Credit and Tax-Exempt Bond programs. The limits for the LIHTC and Bond projects are published separately from the limits…

Recognizing Drug Operations in Apartment Communities

March 19, 2017

Train Management Staff to Recognize Drug Operations The manufacture of methamphetamines in apartment communities if becoming more common each year. Makeshift meth labs are discovered with increasing frequency in apartment communities, and the residual effects on the property can…

FY 2018 Presidential Budget Proposals for HUD

March 14, 2017

FY 2018 Presidential Budget Proposals for HUD The new President has presented his preliminary budget numbers to Congress and if accepted as final numbers, many HUD programs will be devastated as the result of a $6 billion cut. Following…

Small Area Fair Market Rents (SAFMRs)

February 26, 2017

Small Area Fair Market Rents (SAFMRs) HUD publishes fair market rents for all areas of the nation. Public Housing Agencies (PHAs) use fair market rents as a guideline when determining payment standards for the Housing Choice Voucher (HCV) program.…

Determining the Income of Independent Contractors

February 18, 2017

Determining the Income of Independent Contractors It is becoming more and more common for managers of affordable housing to have to verify the income of “gig” workers. Sometimes called “giggers,” these are people who work out flexible work arrangements…

VAWA Deadline Reminders

February 14, 2017

VAWA Deadline Reminders As I noted in a prior client memo, HUD has released four Model forms for use on HUD properties to ensure compliance with requirements of the Violence Against Women Act (VAWA). These model forms are Appendix…

Costs and Burdens Relating to VAWA

January 8, 2017

The cost of implementing the VAWA 2013 requirements can be significant. The HUD final rule provides guidance on who will bear the cost of implementation. One issue is who bears the cost if a property is damaged due to a…

Some States and Localities Increase the Minimum Wage for 2017

January 4, 2017

Managers of affordable housing properties spend a good deal of their time verifying and calculating income. All managers are aware that most workers must be paid a minimum wage (some workers are exempt from the requirement). While the federal minimum…

2017 Increase in Pay for Active Duty Military

January 2, 2017

The National Defense Authorization Act of 2017 has been signed into law by President Obama and effective January 1, 2017, all active duty and active reservists will receive an increase of 2.1% in base pay. This increase will appear in the…

HUD Final Rule on VAWA – November 16, 2016

November 21, 2016

The U.S. Department of Housing & Urban Development (HUD) final rule regarding the implementation of housing protections authorized in the Violence Against Women Reauthorization Act of 2013 (VAWA) was published in the Federal Register on November 16, 2016. In…

Add-on and Special Fees Available for Properties Implementing a Homeless Preference

November 13, 2016

On October 26, 2016, HUD published a memorandum allowing special and add-on management fees for properties implementing a homeless preference. HUD has been working to increase the number of assisted properties with homeless preferences. Recognizing that establishing and operating…

HUD Implementation Guidance for Housing Opportunity Through Modernization Act of 2016

October 22, 2016

In the October 24, 2016 Federal Register, HUD published initial implementation guidance for the Housing Opportunity Through Modernization Act of 2016 (HOTMA). President Obama signed HOTMA into law on July 29, 2016, but only certain parts of the law are…

2017 Social Security COLA Announced – October 18, 2016

October 18, 2016

The federal government announced today that the Social Security Cost of Live Adjustment (COLA) for 2017 will be 0.3%. This means that there will be a very slight change in the Social Security income of SS recipients for the upcoming…

HUD Revises Previous Participation Certification Requirements, Final Rule – October 14, 2016

October 16, 2016

On October 14, 2016, HUD published in the Federal Register a Final Rule, “Improving the Previous Participation Reviews of Prospective Multifamily Housing Program Participants.” This rule revises HUD regulations for review of Previous Participation Certifications (PPC) for certain participants…

Valuation of LIHTC Properties

September 24, 2016

The line item for property taxes is often the most costly item in a Low-Income Housing Tax Credit (LIHTC) project’s operating budget. First, it is important to understand that there is no consistency in the valuation of LIHTC projects…

HUD Proposed Rule on Small Area Fair Market Rents – June 16, 2016

June 25, 2016

In the June 16, 2016, Federal Register, HUD published a proposed rule titled, “Establishing a More Effective Fair Market Rent System; Using Small Area Fair Market Rents in Housing Choice Voucher Program Instead of the Current 50th Percentile FMRs.” …

HUD Demonstration Program on Housing Choice Voucher Physical Inspections

May 29, 2016

On April 27, 2016, HUD published in the Federal Register a “Notice of Demonstration to Test Proposed New Method of Assessing the Physical Conditions of Voucher-Assisted Housing.” Through this Notice, HUD is seeking comments on a demonstration designed to…

HUD Announces Housing Trust Fund Awards – May 5, 2016

May 5, 2016

On May 5, 2016, HUD published a notice in the Federal Register announcing the fiscal year 2016 Funding Awards for the Housing Trust Fund HTF). HUD had originally estimated that $120 million would be allocated in 2016, but this notice…

HUD Releases Final AFFH Assessment Tool

April 10, 2016

HUD Releases Final AFFH Assessment Tool On March 23, 2016, HUD published a Notice in the Federal Register regarding the final Affirmatively Furthering Fair Housing Assessment tool. This tool is for Public Housing Agencies. HUD had already released assessment…

HUD Issues Guidance on Criminal Record Screening

April 6, 2016

On April 4, 2016, the HUD Office of General Counsel (Helen R. Kanovsky) issued guidance on the relationship of using criminal records as a screening tool for housing decisions to federal fair housing laws. The essence of the guidance is…

HUD Publishes 2016 Income Limits

March 28, 2016

On March 28, 2016, HUD published the 2016 income limits for HUD programs as well as for the Low-Income Housing Tax Credit and Tax-Exempt Bond programs. The limits for the LIHTC and Bond projects are published separately from the limits…

Defining “Principal Residence” for Affordable Housing Purposes

March 13, 2016

Defining “Principal Residence” for Affordable Housing Purposes 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…

National Housing Trust Fund Money Now Available

March 6, 2016

National Housing Trust Fund The National Housing Trust Fund (NHTF) was established as part of HERA 2008, and will provide communities with funds to build, preserve and rehabilitate rental homes that are affordable for extremely low and very low-income…

Airbnb and Affordable Housing

March 5, 2016

Airbnb: A Potential Challenge for Affordable Housing Properties Airbnb is a website for people to list, find, and rent lodging. It has over 1.5 million listings in 190 countries. Users of the system must register and create an online…

Cash for Rent – Can Apartment Communities Refuse

February 15, 2016

Cash for Rent – Can Apartment Communities Refuse? It has long been considered a “best practice” in the multifamily housing world not to accept cash rent payments. There are many good reasons not to accept rent payments in cash,…

Boosting Rent (and Therefore Value) for Apartments Through Design and Improvements

February 14, 2016

Boosting Rent (and Therefore Value) for Apartments Through Design and Improvements Whether purchasing or renting, the nation’s 75 million Millennials have strong opinions about what they expect in terms of housing. This age group (mid-20s to mid-3os) constitutes a…

Graffiti Removal and Restoration

January 16, 2016

Graffiti Removal & Restoration When providing training on preparing properties for physical inspections, I always spend a little time talking about graffiti removal. I have recently received a number of email requests from clients for suggestions on how to…

Computing Adjustments to the Allowable Annual Credit for LIHTC Properties

December 6, 2015

At the conclusion of an audit of a Low-Income Housing Tax Credit (LIHTC) taxpayer, the IRS will determine whether any adjustments to the amount of annual credit are appropriate. This will be done after auditing the eligible basis, applicable…

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