A. J. Johnson Partners with Mid-Atlantic AHMA for December Training on Affordable Housing - April 2024

person A.J. Johnson today 03/11/2024

During the month of April 2024, A. J. Johnson will be partnering with the MidAtlantic Affordable Housing Management Association for two live webinar training sessions intended for real estate professionals, particularly those in the affordable multifamily housing field. The following sessions will be presented:

April 16, Violence Against Woman Act  - This two-hour webinar guides owners and managers of affordable housing developments subject to the requirements of VAWA. It covers the background of the law and discusses who the law protects. A full discussion of notice requirements, all required (and prohibited) documentation, lease bifurcation issues, actual and imminent threats, emergency transfer plans, and enforcement mechanisms. Recommendations relating to confidentiality procedures are also provided, as are the basic requirements of a VAWA Plan.

April 18: Limited English Proficiency (LEP) and Section 504; Understanding the Requirements for Multifamily Housing - Two of the most misunderstood laws relating to federally assisted affordable housing are the rules regarding Limited English Proficiency (LEP) and the Section 504 requirements. This three-hour live webinar will cover the requirements of each and outline the basic steps affordable housing managers must take to remain compliant with both sets of rules.

Most individuals living in the U.S. read, write, speak, and understand English. There are many, however, for whom English is NOT their primary language. For this reason, affordable housing operators with federal assistance are required to comply with the federal government's Limited English Proficiency (LEP) requirements.

All programs and operations of entities that receive financial assistance from the federal government, including but not limited to state agencies, local agencies, and for-profit and non-profit entities, must comply with the LEP requirements. Sub-recipients must also comply (i.e. when federal funds are passed through a recipient to a sub-recipient). As an example, Federal Housing Administration (FHA) insurance is not considered federal financial assistance, and participants in that program are not required to comply with Title VI's LEP obligations unless they receive federal financial assistance as well (such as project-based Section 8).

This section of the webinar will assist affordable housing owners and managers in their understanding of LEP requirements and will cover the following areas: (1) Ensuring plan compliance; (2) the "four-factor" analysis; (3) translation "safe harbors"; (4) monitoring and updating the Plan; and (5) issues relating to reasonableness. The training will also outline exactly which programs and properties are - and are not- subject to LEP requirements.

Section 504 of the Rehabilitation Act of 1973 is usually just referred to as "Section 504." Section 504 provides rights to persons with disabilities in federally funded programs and activities, including HUD and RD programs.

Specifically, Section 504 states, "No otherwise qualified individual with a disability in the United States ... shall, solely by reason of her or his disability, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program, service or activity receiving federal financial assistance or under any program or activity conducted by any Executive agency or by the United States Postal Service."

Section 504 is not the only law prohibiting disability discrimination in programs receiving HUD and RD funds or financial assistance. Other federal laws that require nondiscrimination based on disability include the Fair Housing Act, the Americans with Disabilities Act, and the Architectural Barriers Act.

However, this training focuses on Section 504 requirements, including (1) the properties that are subject to Section 504, (2) what is meant by the term "integrated setting," (3) what is meant by program accessibility, (4) who covers costs relating to Section 504 compliance, (5) the definition of an "accessible unit," (6) what physical accessibility features are required, and (7) Section 504 applicability to rehab deals.

At the end of this session, participants will understand the requirements of both LEP and Section 504 and will be better able to serve the intended beneficiaries of these two laws and protect the interests of property owners.

These sessions are part of a year-long collaboration between A. J. Johnson and MidAtlantic AHMA designed to provide affordable housing professionals with the knowledge needed to manage the complex requirements of the various agencies overseeing these programs effectively.

Persons interested in any (or all) training sessions may register by visiting either www.ajjcs.net or https://www.mid-atlanticahma.org.

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Understanding HUD Special Claims

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Management agents who neglect to file special claim requests fail to collect funds the property owner is entitled to and may also violate the terms of their Management Agreement. Eligibility Criteria The special claims process is available for several project types, including: Section 8 Section 202/8 Section 202 PAC Section 202 PRAC Section 811 PRAC To be eligible for a special claim related to unpaid rent, other charges, or damages, the former tenant must have been: Receiving rental assistance at the time of move-out or Had rental assistance terminated before moving out due to failure to comply with program requirements, such as: Not providing necessary information about family composition and income Failing to provide social security numbers Refusing to sign consent forms, verification forms, or HUD-50059 Not establishing citizenship or eligible immigration status Failing to move to an appropriately sized unit within 30 days of notification Special Requirements for Unpaid Rent and Other Charges To successfully claim for unpaid rent and other charges, owners/agents must meet several criteria: Proper Security Deposit Collection: The tenant must have provided the appropriate security deposit. Failure to do so may result in a reduced claim amount. Debt Collection Efforts: Owners/agents must certify they have billed tenants for unpaid rent and taken reasonable steps to collect the debt, including: Sending a certified letter detailing unpaid charges, demanding payment, and involving a collection agency if the tenant fails to pay. Compliance with State and Local Laws: The claim must adhere to state and local laws regarding security deposit deductions. Allowable Charges: "Other charges" may include fees for unreturned keys, late payments (if permitted by lease and local law), and previously billed damages that remain unpaid at move-out. Non-Allowable Charges: Legal fees, collection agency fees, unpaid utility bills, and costs for photographing unit damage are not eligible for claims. Special Requirements for Tenant Damages For damage claims, additional requirements apply: Certification of Tenant Negligence: Owners/agents must certify that the claimed damages resulted from tenant negligence or abuse. Extraordinary Repairs Only: Claims should be limited to repairs and replacements beyond normal wear and tear. No Duplication of Reimbursement: Owners cannot claim for damages already reimbursed through insurance, Reserve for Replacements, or Residual Receipts accounts. Proper Tenant Notification: Failure to provide tenants with an itemized list of damages will result in claim denial. 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This timeline emphasizes the need for prompt and efficient claim processing. Conclusion The HUD special claims process offers property owners and managers a valuable opportunity to recover financial losses in subsidized housing scenarios. By understanding the eligibility criteria, documentation requirements, and claim limitations, housing professionals can effectively utilize this system to maintain financial stability and operational efficiency. While the process may seem complex, diligent record-keeping and adherence to HUD guidelines can streamline the claim submission process. As the housing landscape evolves, staying informed about such reimbursement mechanisms becomes increasingly crucial for successful property management in the affordable housing sector. For more detailed information and updates, property owners and managers are encouraged to consult the HUD Special Claims Processing Guide (HSG-06-01) and stay abreast of any policy changes or updates from HUD.

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