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Disaster Relief Rules – IRS Revenue Notice 2014-49

Disaster Relief Rules   Revenue Procedure 2014-49 This IRS Revenue Procedure provides temporary relief from certain requirements of §42 of the Internal Revenue Code (the LIHTC Program) for Agencies and owners if certain areas have been impacted by a major…

Citi Bank Loan Program

Developers looking to put together LIHTC deals in California, New York, Illinois, Massachusetts, Delaware, Washington DC, and Florida have a new financing option available to them.   Citi Bank has released guidance for its new affordable rental-housing program – The…

Social Security COLA Announced

The federal government announced on October 22, 2014 that the Social Security Cost of Live Adjustment (COLA) for 2015 will be 1.7%. This will increase the monthly pension for the average retired worker by $22 per month. This is up from…

Changes in Administration of State Supplementary Payments (SSP)

Almost all states have a Supplementary Payments (SSP) Program, which supplements the Federal Supplemental Security benefit (SSI), which is administered by the Social Security Administration (SSA). In the past, many states had their program administered by the SSA, making it…

HUD REAC Rules Updated (August 12, 2014)

HUD released HUD Compilation Bulletin on August 12, 2014, providing updated guidance to REAC inspectors regarding when certain areas of properties are not to be inspected for REAC purposes and changing the way certain inspection elements will be reviewed. These…

HUD Updates List of Federally Mandated Income Exclusions

HUD is required to periodically publish in the Federal Register a notice that lists amounts specifically excluded by any Federal Statute from consideration as income for purposes of determining eligibility or benefits in a HUD program. The last such notice…

HUD to Ease PHA Income Verification Requirements

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…

Farm Bill Protects Rural Area Designation

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…

Nonprofit Set-Aside Issues for LIHTC Properties

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

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…

2014 Income Limits Published

On December 18, 2013, HUD published the 2014 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…

Developer Fees in Eligible Basis

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,…

HUD Mortgage Insurance Premiums for LIHTC Projects

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.…

IRS Approves Same-Sex Marriage for Tax Purposes

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

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…

Rural Area Definition – Legislative Update (June 28, 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…

UPCS Changes to Fence and Gate Inspection Standards

One significant change in the Uniform Physical Condition Standard (UPCS) that became effective on January 1, 2013 relates to the way inspectors will assess deficiencies in fencing and gates.  Such findings have been very common in REAC and State monitoring…

A Primer on Pre-Paid Debit Cards

Federal and State governments are rapidly moving away from cash and paper checks and going to the use of pre-paid cards. Such cards enable consumers without bank accounts to benefit from the shift to electronic transactions from cash and to…

Handling Income from Investment Accounts

As most operators of housing under HUD, Rural Development, and the Low-Income Housing Tax Credit Programs know, there is a considerable difference of opinion in our industry regarding the handling of investment accounts from which regular distributions are taken. This…
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