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2025 Social Security COLA Announced

The federal government announced on October 10, 2024, that the Social Security Cost of Living Adjustment (COLA) for 2025 will be 2.5%, slightly lower than the 3.2% increase for 2024. This increase will provide an additional $50 per month for the average retiree. Social Security recipients will receive a notice in the mail in early December showing their new benefit amount. Recipients will see an increase in their January 2025 payment. Those receiving SSI will see the increase on December 31, 2024. Owners and managers of properties required to determine residents' incomes should use the new COLA SS rate when projecting applicants' and residents' incomes. This also affects individuals receiving SSI, VA pensions, Civil Service pensions, and Railroad retirement.

New York City Reaches Landmark Settlement Agreement on Fair Housing Practices

In a significant development for fair housing in New York City, Parkchester, a major residential complex in the Bronx, has entered into a comprehensive settlement agreement to address allegations of discriminatory rental practices. The deal, reached with the New York City Commission on Human Rights, outlines extensive reforms to Parkchester's rental policies and procedures, mainly focusing on the treatment of applicants with rental assistance. Key Provisions of the Settlement: Non-Discrimination in Rental Assistance: Parkchester has agreed to consider all rental assistance types when evaluating sponsor units' applications. This includes Section 8 vouchers, Housing Choice Vouchers, HASA, CityFHEPS, and Olmstead programs. The complex is prohibited from giving preference to one type of rental assistance over another. Elimination of Minimum Income Requirements: Parkchester will no longer impose minimum income requirements for applicants using rental assistance. This change aims to increase housing accessibility for low-income individuals and families. Credit Score and Housing History: The agreement prohibits Parkchester from requiring minimum credit scores or verifiable housing history for applicants with rental assistance. Credit history will not be considered in the application process for those whose rent is fully covered by assistance. Fair Chance Housing: Parkchester has committed to complying with the New York City Fair Chance Housing Act, which will take effect on January 1, 2025. This includes performing individualized assessments of applicants' criminal histories. Application Process Reforms: The settlement mandates changes to Parkchester's application and screening materials to ensure compliance with federal, state, and local laws. It also requires Parkchester to provide reasonable accommodations for applicants who need assistance with the digital application process. Set-Aside Units: In a significant move, Parkchester has agreed to a quota system where two out of every three available sponsor units will be rented to applicants with rental assistance until 850 such applicants have moved in. This includes the 257 that have moved in since August 1, 2022. Advertising and Outreach: The agreement requires Parkchester to include specific language in its advertisements and website, welcoming applicants with rental assistance and explaining the non-discrimination policies. Training and Monitoring: Parkchester staff will undergo comprehensive fair housing training. The agreement also establishes a monitoring system, requiring Parkchester to maintain detailed records and provide regular reports to the Commission on Human Rights for five years. This settlement represents a significant step forward in ensuring equal access to housing in one of New York City's largest residential complexes. The agreement aims to create more inclusive and diverse communities within Parkchester by addressing systemic barriers that have historically disadvantaged applicants with rental assistance. The reforms outlined in this agreement could serve as a model for other large residential properties in New York City and beyond, potentially influencing fair housing practices on a broader scale.

Rural Development Service Announces Change to HOTMA Implementation Date

On October 3, 2024, the Rural Housing Service (RHS) announced a change in the Housing Opportunity Through Modernization Act (HOTMA) implementation date. On September 20, 2024, the Department of Housing and Urban Development (HUD) announced that the compliance date for HUD programs is extended to July 1, 2025. To align with HUD, RHS is extending the full implementation of applicable HOTMA regulations to the same date - July 1, 2025. All RHS Multifamily Housing (MFH) tenant certifications, effective on or after July 1, 2025, must comply with HOTMA requirements. RHS published an Unnumbered Letter on August 19, 2024, notifying MFH staff and housing operators of the anticipated timeline for HOTMA implementation. As indicated in the UL, the updated Management Interactive Network Connection (MINC)/Industry Interface specifications for software providers have been posted on the MINC homepage. Due to the new implementation date, owners of RHS properties should note the following: The updated Form RD 3560-8 is expected to be published in October 2024. Since tenant certifications can be submitted to the Agency up to 90 days before their effective date, the following will apply: The updated Form RD 3560-8 will be used to submit tenant certifications effective July 1, 2025. Once the updated form is published, the current Form RD 3560-8 will be renamed Form RD 3560-8A and should be used for tenant certifications effective before July 1, 2025. Updates to Handbook 2-3560, initially scheduled for October 2024, will be delayed until January 2025. This will give MFH and property staff adequate time to review the changes before the July 1, 2025 implementation date. Any references to January 1, 2025, in the UL should be replaced with July 1, 2025. The passbook savings rate increase from 0.4% to 0.45% will still be implemented on January 1, 2025. Owners and managers of RHS properties, including those operating under Section 515, should carefully review the August 19, 2024, Unnumbered Letter for the RD requirements relating to HOTMA implementation.

HUD Adds Income Exclusion for Veterans Disability for HUD-VASH Participants - IRS Adopts for LIHTC

The Department of Housing and Urban Development (HUD) published a Notice in the August 13, 2024, Federal Register announcing policy changes to the Veterans Affairs Supportive Housing (VASH) program to improve access for veterans experiencing homelessness. Homeless veterans often receive disability benefits as a result of disabilities that were acquired or made worse during military service. Before this change, such benefits were considered income for HUD programs, causing some veterans to exceed the income limits for specific assisted housing programs. HUD is expanding access to these programs by adding five new policies to the HUD-VASH program: Initial income eligibility will now be set at 80% of the area median income rather than 50% as in the past. While this higher limit has been optional for agencies participating in the HUD-VASH program, it is now mandatory. Service-connected disability benefits are now excluded from income. Presently, this income is excluded only from the HUD-VASH program but is likely to be adopted by other housing subsidy programs (as discussed below, the IRS has adopted it for the LIHTC program). Local agencies will no longer have to compete for HUD-VASH project-based awards if all units in a project serve HUD-VASH families at a VA facility. Up to 140 percent of the Fair Market Rent may be allowed as a reasonable accommodation for a person with a disability, but only with HUD approval. PHAs may establish a zero minimum rent policy for HUD-VASH units. IRS Revenue Procedure Adopts Income Exclusion for the LIHTC Program On September 24, 2024, the IRS issued Revenue Procedure 2024-38, providing the same income exclusion for LIHTC and Tax-Exempt Bond properties. It should be noted that the exclusion only applies to tenants receiving assistance under the HUD-VASH program. It does not apply to LIHTC or tax-exempt bond residents who do not receive assistance under the HUD-VASH program. Operators of LIHTC or Tax-Exempt Bond properties should also note that the programs' income limits have not changed, so a HUD-VASH recipient may not income qualify for the LIHTC or Tax-Exempt Bond Program if they qualify at the new 80% HUD limit. Effective immediately, all projects with tenants assisted by the HUD-VASH program will exclude the total amount of any VA disability benefits received by those applicants or residents. Managers of LIHTC or Tax-Exempt Bond properties serving tenants with vouchers should request information from local PHAs regarding whether the vouchers are being provided under the HUD-VASH program. If so, any VA disability income should be excluded.