News

A. J. Johnson Partners with Mid-Atlantic AHMA for September Affordable Housing Training

During the month of September 2023, A. J. Johnson will be partnering with the MidAtlantic Affordable Housing Management Association for two training sessions intended for real estate professionals, particularly those in the affordable multifamily housing field. Both of the sessions will be presented via live webinars. The following sessions will be presented: September 27: The Basics of Low-Income Housing Tax Credit Management -  This training is designed primarily for site managers and investment asset managers responsible for site-related asset management and is especially beneficial to those managers who are relatively inexperienced in the tax credit program. It covers all aspects of credit related to on-site management, including the applicant interview process, the determination of resident eligibility (income and student issues), handling recertification, setting rents - including a full review of utility allowance requirements - lease issues, and the importance of maintaining the property. The training includes problems and questions designed to ensure that students are fully comprehending the material. September 28: The Verification and Calculation of Income and Assets on Affordable Housing Properties (live webinar)- This five-hour live webinar (there will be a 1.5-hour lunch break) provides concentrated instruction on the required methodology for calculating and verifying income, and for determining the value of assets and income generated by those assets. The first section of the course involves a comprehensive discussion of employment income, along with military pay, pensions/social security, self-employment income, and child support. It concludes with workshop problems designed to test what the student has learned during the discussion phase of the training and serve to reinforce HUD-required techniques for the determination of income. The second component of the training focuses on a detailed discussion of requirements related to the determination of asset value and income and is applicable to all federal housing programs, including the low-income housing tax credit, tax-exempt bonds, Section 8, Section 515, HOME, and HOPE VI. Multiple types of assets are covered, both in terms of what constitutes an asset and how must they be verified. This section also concludes with a series of problems, designed to test the student s understanding of the basic requirements relative to assets. These sessions are part of the year-long collaboration between A. J. Johnson and MidAtlantic AHMA and are designed to provide affordable housing professionals with the knowledge needed to effectively manage the complex requirements of the various agencies overseeing these programs. Both sessions will include the changes brought about by the new HUD Final Rule on HOTMA. Persons interested in any (or all) of these training sessions may register by visiting either www.ajjcs.net or https://www.mid-atlanticahma.org.

A. J. Johnson to Conduct Live Webinar on Liability Protection Policies for Affordable Housing Properties

A. J. Johnson will be conducting a webinar on August 23, 2023, on Liability Protection Policies for Affordable Housing Properties. The Webinar will be held from 1:00 PM to 3:30 PM Eastern Time. As important as it is to understand the program rules for affordable housing programs, it is equally as important to have sound protection and liability policies in place. This 2.5-hour live webinar reviews the critical protection policies that every affordable housing property should have. A full discussion of the following policies is included: Sexual Harassment Policy, Criminal Screening, Reasonable Accommodations, VAWA, and Fraud Prevention & Detection. The training is intended for site staff as well as supervisory and compliance personnel. Written course material with sample policies will be provided to participants. Those interested in participating in the Webinar may register on the A. J. Johnson Consulting Services website (www.ajjcs.net) under "Training."

A. J. Johnson to Conduct Live Webinar on Multifamily Occupancy Standards

A. J. Johnson will be conducting a webinar on August 29, 2023, on Occupancy Standards for Multifamily Housing. The Webinar will be held at 1:00 PM Eastern Time and will last approximately one hour. Owners and managers of multifamily housing developments must create and implement many types of policies, governing everything from how to collect the rent to the handling of work orders. One of the most important policies for any property is its "occupancy standard." In simple terms, an occupancy standard is a policy that outlines how many people may live in each unit at a property.Overcrowded housing is dangerous and unsanitary, as well as being hard on the building systems such as water, sewer, and HVAC. However, occupancy standards that are too strict may violate fair housing laws by limiting the ability of families with children to find housing. In short, occupancy standards must be "reasonable." But, determining what is reasonable can be complex. This training is designed to assist owners and managers in navigating this complex and difficult area of fair housing liability. Those interested in participating in the Webinar may register on the A. J. Johnson Consulting Services website (www.ajjcs.net) under "Training."

Rural Development Income Limits Released

The Rural Development Service of the United States Department of Agriculture has released the 2023 income limits for the Rural Development Multifamily Housing (Section 515) program. The limits were effective on July 13, 2023, and may be found at RD-MFHLimitMap.

A. J. Johnson to Conduct Live Webinar on Average Income Minimum Set-Aside

A. J. Johnson will be conducting a webinar on August 10, 2023, on Requirements & Best Practices Relating to the Average Income Minimum Set-Aside for LIHTC properties. The Webinar will be held at 1:00 PM Eastern Time. The Average Income Minimum Set-Aside Test ("AI") was added to the LIHTC program in March 2018. While it is being implemented successfully on many properties, there remains a good deal of industry-wide confusion about the use of the AI set-aside and the risks involved. This one-hour live webinar will review the requirements of AI, discuss the risks of this set-aside, and provide best practice recommendations for implementation of the Average Income test. We will also cover the final IRS guidance relating to the AI set-aside. The Webinar will be presented by A. J. Johnson, a nationally recognized expert on affordable housing who has already provided compliance oversight on multiple properties using the AI set-aside. Those interested in participating in the Webinar may register on the A. J. Johnson Consulting Services website (www.ajjcs.net) under "Training."

A. J. Johnson to Provide Live Webinar on Tenant-on-Tenant Harassment and Sexual Harassment in the Workplace

A. J. Johnson will be conducting a webinar on July 11, 2023, on Tenant-on-Tenant Harassment and Sexual Harassment in the Workplace. The Webinar will be held from 1:00 PM to 4:00 PM Eastern time. Dealing with tenant-on-tenant harassment is an evolving area of fair housing law. Landlords are generally familiar with how their actions can be construed as discriminatory. But how should landlords react when one resident is violating the fair housing rights of another resident?Title VII of the Civil Rights Act of 1964 prohibits discrimination based on sex in the workplace - including sexual harassment. The law applies to employers with 15 or more employees. In addition to having a written sexual harassment policy, companies should also have an effective complaint procedure.Many businesses in the United States have no policies regarding sexual harassment, and such harassment occurs in the highest levels of corporate management. However, the risk of not having such a policy far outweighs the effort required to implement one.These risks are greater now than ever before. Victims of sexual harassment may now recover damages (including punitive damages) and the Supreme Court has made it easier to prove injury.This three-hour training is designed to help property owners and managers understand the current legal state of these two issues and to establish policies to limit potential liability. The session will include a discussion of the three most relevant court cases relating to tenant-on-tenant harassment as well as cases that outline employer risk regarding harassment in the workplace. Participants will also be provided with recommended policies to limit potential liability. Those interested in participating in the Webinar may register on the A. J. Johnson Consulting Services website (www.ajjcs.net) under "Training Schedule."

Public Housing Over-Income Rule Must be Fully Implemented by July 14

On March 13, 2023, HUD s Office of Public and Indian Housing (PIH) issued Notice PIH-2023-03, which provides supplemental guidance on the implementation of HOTMA Section 103. This section of HOTMA applies only to public housing agencies (PHAs) with 250 or more public housing units. Section 103 became effective on March 16, 2023, and PHAs must fully implement over-income policies no later than July 14, 2023. According to the statute, after a household s income has exceeded the over-income (OI) limit for 24 consecutive months, a PHA must either terminate the household s public housing tenancy within six months or allow by PHA policy the OI household to continue to live in a public housing unit by charging the household an alternative rent. The alternative rent must equal the greater of the Fair Market Rent (FMR) or the amount of monthly subsidy provided for the unit as determined by the amount of Operating and Capital Funds apportioned to a unit. Over-Income Limit The over-income limit is established by multiplying the very low-income level for the applicable area by a factor of 2.4, a limit equal to approximately 120% of the area median income (AMI). Falling Below OI Limit If the PHA determines (in an interim or regular reexamination) that a family s income has fallen below the OI limit at any time during the 24-month grace period, the family will remain public housing eligible and return to regular income reexamination periods. If the family becomes OI again, a new 24-month grace period begins. Notices Once a family is determined to be over-income, a PHA must notify the household. Notice PIH-2023-03 requires three written notices, while PIH-2019-11 required only two. Each notice must be given within 30 days of the income examination that determines the family is, or remains, OI - at the initial determination of OI status, following the reexamination at the conclusion of the first 12 months of the grace period, and at the conclusion of the 24-month grace period. Policies PHAs must have a "continued occupancy policy" detailed in its Admissions & Continued Occupancy Policy (ACOP) that either requires OI families to execute a new non-public housing over-income (NPHOI) lease within 60 days of notification and charge the family the alternative non-public housing rent or terminate the tenancy of the family no more than six months after the notification. Bottom Line PHAs that have not fully implemented the HOTMA requirements relating to over-income public housing residents must do so no later than July 14, 2023.

HUD Provides Funding for Green Retrofits

A new HUD program will simultaneously invest in utility efficiency, renewable energy generation, and climate resilience strategies in HUD Multifamily Assisted Housing. The funding for the program is provided by the Inflation Reduction Act of 2022 and provides HUD with $837.5 million in grant funding and $4 billion in loan authority for the program. The funding will allow owners to invest in technology such as solar panels, heat pumps, wind-resistant roofing, and other technologies that will reduce greenhouse gas emissions. HUD has published three Notices of Funding Opportunity (NOFOs) for the Green and Resilient Retrofit Program (GRRP), along with implementation guidance in Housing Notice H 2023-05. The funding is available for multiple HUD programs, including Section 8 Project-Based, Section 202, and Section 811.  The program has three funding options: Elements Awards: provides funding to owners to add energy efficiency, electrification, and renewable energy measures for in-progress rehabilitation. These awards are intended for sites with renovation planning already in progress. An example would be an owner who is well advanced in planning and financing a rehab and, as a result of the award, the owner can replace the in-unit HVAC system with higher efficiency electric HVAC systems. Approximately $140 million in grants and surplus cash loans are available and the funding is capped at $40,000 per unit or $750,000 per property. Applications are due March 28, 2024. This option has excellent potential for HUD-assisted projects that have been purchased and are being layered with Low-Income Housing Tax Credits. Leading Edge Awards: this provides funding for retrofit activities designed to achieve ambitious outcomes, including net zero emissions, renewable energy generation, low-carbon building materials, and climate-resilient investment. For example, this will allow owners to do a complete renovation and achieve a passive house certification. Approximately $400 million in loans and grants is available with funding capped at $60,000 per unit or $10 million per property. Applications are due April 30, 2024. Comprehensive Awards: This is the widest-ranging option and will include properties that are not yet in the planning process. It will prioritize sites with a significant need for energy efficiency, emissions reductions, and climate resilience. An example of an applicant for this award is a site with high REAC scores and low capital needs but has older, fossil fuel-dependent equipment. Owners utilizing this funding will be assisted by HUD-procured Multifamily Assessment Contractors in developing the scope of work. It is intended to provide whole-building retrofits and resilient design elements. $1.47 billion is available for this option and is capped at $80,000 per unit or $20 million per property. Applications are due May 30, 2024. Owners interested in applying for these funds through the Office of Recapitalization within the Office of Multifamily Programs in the Office of Housing. Owners may apply in one category only for a site, but there is no limit to the number of sites an owner, or its affiliate, can submit across all award categories. The required application materials can be found at Grants.gov under the funding opportunity number cited within HUD s NOFO. The NOFos can be found at www.hud.gov/grrp. Questions may be emailed to GRRP@hud.gov.