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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…

Affordable Housing Credit Improvement Act Gaining Support

October 20, 2019

Since its introduction in June 2019, the Affordable Housing Credit Improvement Act has garnered more support and co-sponsorships from Congressional members. If enacted into law, the legislation will increase the annual allocation of low-income housing tax credits by 50 percent…

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…

HUD Publishes Proposed Rule on Implementation of The Housing Opportunity Through Modernization Act of 2016 (HOTMA)

September 22, 2019

HUD published a proposed rule implementing The Housing Opportunity Through Modernization Act of 2016 (HOTMA) in the federal register on September 17, 2019. HOTMA was enacted on July 29, 2016. This rule would make sweeping changes to current HUD programs,…

HUD Issues Revised Final Implementation Notice for RAD Program

September 5, 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…

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…

Court Rules that Voucher Fair Housing Protection Does Not Violate Rights of Owner

August 11, 2019

In a June 2019 ruling (Fletcher Props v. City of Minneapolis), the Minneapolis Appeals court reversed a lower court ruling and found that a city ordinance prohibiting apartment owners from refusing to accept voucher holders did not violate the owner’s…

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…

New Software Available for Affordable Housing Properties

August 3, 2019

MRI Software has introduced MRI Affordable Housing, a property management and compliance software program for owners and managers of affordable housing and mixed-income portfolios. This software fully integrates with MRI’s conventional multi-family property management and financial solutions. It is intended…

Winning Reasonable Accommodation Cases – Smoking Complaints

August 3, 2019

Every owner and manager of a housing development understands (or should understand) that disabled applicants and residents have the right to request that properties be modified (reasonable modifications) or that rules be changed or waived (reasonable accommodations) so that the…

Winning Reasonable Accommodation Cases – Noise Complaints

July 27, 2019

Every owner and manager of a housing development understands (or should understand) that disabled applicants and residents have the right to request that properties be modified (reasonable modifications) or that rules be changed or waived (reasonable accommodations) so that the…

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…

Save Affordable Housing Act of 2019

June 29, 2019

On June 25, 2019, four U.S. Senators and three members of the House introduced the Save Affordable Housing Act of 2019. The sole purpose of this proposed legislation is to repeal the qualified contract option for the federal Low-Income Housing…

Opportunity Zones and the Low-Income Housing Tax Credit

June 10, 2019

The Opportunity Zone (OZ) Program was created as part of the Investing in Opportunity Act, which was included in the Tax Cuts and Jobs Act enacted in December 2017. While this law did not have a significant impact on job…

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…

HUD Publishes 2019 Income Limits

April 24, 2019

On April 24, 2019, HUD published the 2019 income limits for HUD programs as well as for the Low-Income Housing Tax Credit and Tax-Exempt Bond programs. The limits are effective on April 24, 2019. The limits for the LIHTC and…

GAO Recommends Improvements to REAC – March 2019

April 7, 2019

At the end of March 2019, the Government Accountability Office (GAO) issued a report titled, “REAL ESTATE ASSESSMENT CENTER – HUD Should Improve Physical Inspection Process and Oversight of Inspectors.” The 2017 Consolidated Appropriations Act, Joint Explanatory Statement,…

Firearms – Can They be Banned in Apartment Communities?

April 2, 2019

In my role as a consultant, I have been asked a number of times whether or not guns can be banned at apartment communities. The answer may well depend on the state in which the community is located, but…

Proposed HCV Mobility Demonstration Act – March 2019

March 31, 2019

The Housing Choice Voucher Mobility Demonstration Act was introduced in the House of Representatives on February 8, 2019 as H.R. 1122 by Rep. Emanuel Cleaver (D – MO) and in the Senate on January 31, 2019 as S.291 by Sen.…

Quiet Enjoyment – A Lease Concept that Managers Must Understand

March 30, 2019

Landlords are required to ensure that all residents have “quiet use and enjoyment” of their apartment. For this reason, owners must deal with any resident who disrupts the “livability” of the property. Owners can ensure that this responsibility is met…

Opportunity Zones – How Tax Breaks for the Wealthy May Benefit the Less Well-Off

February 25, 2019

“Doing well while doing good” has long been a mantra of the wealthy looking for ways to preserve their wealth while doing something worthwhile for the less fortunate. The newest investment opportunity giving them a chance to do so…

The Family Self-Sufficiency (FSS) Program – A Tool for Section 8 Owners

February 16, 2019

The Family Self-Sufficiency (FSS) Program was authorized by Congress in 1990 and is administered by the Department of Housing & Urban Development (HUD). FSS helps low-income families get out of poverty by combining financial education and coaching with savings incentives.…

HUD Resumption of Multifamily Production and Asset Management Activities

February 3, 2019

The HUD Office of Multifamily Housing (MFH) issued two memorandums on February 1, 2019 outlining the departments plan for prioritizing the backlog of work from the shutdown. One memo deals with the resumption of multifamily production activities and the other…

Affordable Senior Housing – Demand Exceeds Supply

February 2, 2019

The Harvard Joint Center for Housing Studies recently published Housing America’s Older Adults 2018. A highlight of the report is that over half of U.S. households are now headed by someone age 50 or older. This indicates that the living…

Affirmative Fair Housing Marketing Requirements for HOME Properties

January 26, 2019

The HOME final rule (24 CFR 92.351[a]) requires Participating Jurisdictions (PJs) and state recipients to develop, adopt, and follow written affirmative marketing procedures and requirements for rental and homebuyer projects containing five or more HOME-assisted units, regardless of the specific…

Homeownership Options for the Low-Income Housing Tax Credit Program

January 15, 2019

It is not unusual to see Extended Use Agreements (EUAs) for Low-Income Housing Tax Credit (LIHTC) properties with a provision requiring a homeownership option for residents at the end of the 15-year tax credit compliance period. In many cases, developers…

Dealing with “Zero Income” Households

November 18, 2018

While “zero income” households are rare on Low-Income Housing Tax Credit properties (since there is no rental assistance, income is required in order to pay the rent), such households are not uncommon on Section 8 properties or developments with Rural…

IRS 2018-2019 Priority Guidance Plan

November 10, 2018

On November 8, 2018, the IRS released a Priority Guidance Plan for the period July 1, 2018 – June 30, 2019. This plan outlines the areas that the IRS intends to provide formal guidance on for the rest of…

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