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Changes in Administration of State Supplementary Payments (SSP)

October 1, 2014

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)

August 31, 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…

Violence Against Womens Act (VAWA) Recommendations Relative to the LIHTC Program

August 24, 2014

United States Code Title 42, Chapter 136, Subchapter III, effective March 7, 2013, provides housing protections for victims of domestic violence, dating violence, sexual assault, and stalking. The following housing programs are required to comply with the VAWA: *Supportive…

HUD Implements HERA Changes to Tenant Based and Project Based Vouchers

July 6, 2014

On June 25, 2014, HUD published a notice implementing changes made by the Housing & Economic Recovery Act (HERA) of 2008 to the Tenant Based and Project Based Voucher Programs. Two changes will make it easier to use Project-based…

HUD Updates List of Federally Mandated Income Exclusions

May 29, 2014

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…

Failure to Spot Unauthorize Occupants Can Lead to HUD and IRS Problems

April 26, 2014

A recent court case (Matthews v. Housing Authority of Baltimore City, March 2014) shows the importance of keeping track of who is living in your HUD assisted or tax credit units. Both HUD and the IRS have strict requirements relative…

HUD to Ease PHA Income Verification Requirements

April 11, 2014

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…

Draft House Tax Reform Act of 2014 Retains (but changes) LIHTC Program

February 28, 2014

On February 26, 2014, the House Ways & Means Committee under Chairman David Camp released a discussion draft Tax Reform Act of 2014. While tax reform almost certainly not going to happen in 2014, this draft proposal is significant in…

Social Security Administration Changes Rules Regarding Proof of Income Letters

February 28, 2014

On February 4, 2014, the Social Security Administration (SSA) announced that effective October 1, 2014, SSA field offices will no longer offer benefit verification letters. Budget cuts are responsible for this cutback. Households needing verification of SS benefits should now…

Farm Bill Protects Rural Area Designation

February 5, 2014

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

January 2, 2014

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

December 26, 2013

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

December 22, 2013

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

November 2, 2013

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

September 26, 2013

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.…

HUD Changes to Appendix 3 of 4350.3 – Acceptable Forms of Verification

September 4, 2013

Along with the recent publication of Change 4 to HUD Handbook 4350.3, HUD also amended Appendix 3, Acceptable Forms of Verification. Some of the changes are worth noting, as follows (changes are shown in parentheses): Assets disposed of for less…

IRS Approves Same-Sex Marriage for Tax Purposes

August 29, 2013

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

August 9, 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)

June 29, 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…

Effect of Supreme Court Ruling on DOMA on LIHTC Student Rule

June 27, 2013

As you probably know by now, on June 26, 2013 the Supreme Court declared that Section Three of The Defense of Marriage Act (DOMA) is unconstitutional. This decision basically holds that persons of the same sex who are legally married…

UPCS Changes to Fence and Gate Inspection Standards

May 23, 2013

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

April 6, 2013

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

March 18, 2013

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…

Violence Against Women Act Ready for President’s Signature

March 4, 2013

On February 28, 2013, the Violence Against Women Act (VAWA) passed the House of Representatives after already having been approved by the Senate. The bill now goes to President Obama for his signature, which is certain. Title VI, Section…

HUD Changes Income Verification Rules for PHAs

February 26, 2013

HUD has issued Notice PIH 2013-3, establishing temporary guidelines for public housing agencies (PHAs) in fulfilling certain public housing and Housing Choice Voucher program requirements during this period of decreased resources available to PHAs. It offers PHAs four options that…

New Ohio Law Should Lower Real Estate Taxes for LIHTC Projects

February 16, 2013

Owners of low-income housing tax credit properties in Ohio may soon be paying less in property taxes for their properties due to a law signed by the Governor of Ohio, John Kasich, on December 20, 2012. The law, H.B. 510,…

IRS Priorities for 2013 Relating to LIHTC

February 9, 2013

During 2013, the IRS will review various issues under Section 42 of the IRC, including the following: Guidance relating to the application of the design and construction accessibility requirements under the Fair Housing Amendments Act of 1988. Issues relating…

No More Paper Checks for Federal Retirement Benefits

January 21, 2013

In an effort to save money, Federal officials began retiring paper checks in favor of direct deposits and prepaid ‘Direct Express’ debit cards in May, 2011. Since then, the Treasury Department has required all new recipients of payments from federal benefits…

Social Security Benefits Verification Now Available Online

January 9, 2013

Social Security recipients can now get their benefits verification letter and conduct other business online, as part of enhanced Web services introduced on January 7, 2013 by the federal government. The letters, which state the amount of the recipient’s monthly…

Section 45L Energy Tax Credit

January 7, 2013

Section 45L Energy Tax Credit When Congress passed the American Taxpayer Relief Act of 2012, it extended the Section 45L tax credit, which provides eligible contractors of homes -including apartments -, with a tax credit of $2,000 per energy…

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