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A. J. Johnson to Participate in 29th Annual Mid-Atlantic AHMA Fall Conference

A. J. Johnson will participate in the Mid-Atlantic Affordable Housing Management Association (AHMA) 29th Annual Fall Conference, which will take place in Richmond, VA, from November 19-21, 2024. This year's conference promises to be invaluable for professionals in the affordable housing industry, offering a comprehensive program that addresses both current challenges and future trends.  Highlights of the Conference: 1. HOTMA Implementation and Beyond While the Housing Opportunity Through Modernization Act (HOTMA) remains a focal point, this year's conference expands its scope to cover many pressing issues in affordable housing management. Attendees will gain insights on HOTMA implementation and other critical topics that impact their daily operations. 2. Diverse Learning Tracks  The conference features multiple specialized tracks to cater to various roles and interests within the industry:  - General Interest Track  - LIHTC Track  - HUD Track  - Special Interest Track  - Maintenance Workshop Track  3. Expert-Led Sessions  Renowned industry experts, including A. J. Johnson, Jenny DeSilva, and Dr. Dori Bryan-Ployer, will lead sessions on topics such as conflict resolution, marketing strategies, cyber awareness, and the impact of HOTMA on different housing programs. 4. A. J. Johnson will lead a discussion on Hot Topics in Affordable Housing Sessions and will cover crucial subjects like:  - Assistance animals and medical marijuana policies  - Violence Against Women Act (VAWA) compliance  - Fair housing in the age of artificial intelligence  - Dealing with the Death of a Resident  - Preventing Sexual Harassment  - HOTMA Income and Asset Issues  - Management of Layered Projects  5. Other Topics Featuring Industry Leaders such as Jenny DeSilva and Angelique Napoleon will include: - EIV/TRACS and HOTMA  - Understanding Human Trafficking  6. Hands-On Maintenance Workshops  A dedicated track for maintenance professionals offers practical sessions on HVAC systems, motor operations, and effective preventative maintenance planning.  7. Networking Opportunities  The conference includes a vendor exhibition and reception, providing ample opportunities for attendees to connect with peers and industry suppliers.  8. Keynote Address  The event starts with a keynote address titled "Embrace Uncommon Sense: Boost Workplace Engagement and Wellbeing," which sets an inspiring tone for the conference.  Who Should Attend:  This conference is essential for property managers, compliance officers, maintenance supervisors, asset managers, and anyone involved in the affordable housing industry. Whether you're dealing with LIHTC, HUD programs, or mixed-finance properties, there's something valuable for every professional.  Take advantage of this opportunity to stay ahead in the ever-evolving world of affordable housing management. Join us for three days of learning, networking, and professional growth at the Mid-Atlantic AHMA 2024 Fall Conference.  Register now at mid-atlanticahma.org to secure your spot at this premier industry event!

Rural Development Issues Emergency Call System Guidance

The Rural Housing Service (RHS) has issued an Unnumbered Letter providing guidance to Multifamily Housing (MFH) staff and program participants regarding emergency call systems, also referred to as "pullcords" in MFH units. Installing and using emergency call systems in MFH units, commonly in bathrooms and bedrooms, have historically provided a means for tenants to alert others if they require assistance in the case of an emergency, such as a fall, fire, or medical issue. Many installed emergency call systems no longer function and provide a false sense of security, leading tenants to believe the system will directly alert emergency response services or property management. Additionally, the need for emergency call systems has diminished due to the availability and advancements in technology, such as cell phones and personal medical/life alert equipment. The purpose of the Unnumbered Letter is to inform RHS staff and property operators that RHS does not require emergency call systems in any MFH units. However, some MFH properties still have these systems. Rural Development requires the system to be operational if an emergency call system is in place in any unit. MFH properties that continue to utilize emergency call systems must ensure that the systems work as designed. The system must be regularly inspected per state and local laws. If a property previously used an emergency call system and it is no longer operational, the inoperable system must be removed. Owners and managers are responsible for ensuring that tenants understand how the emergency call system functions. It is recommended that owners provide written instructions and a demonstration of the system to tenants. Recommendations include: Step-by-step instructions on how to use the system. Guidance to tenants on what services are available in response to the system activation, including clarification that the system is not tied to and, therefore, not a substitute for 911 emergency services. Clearly marked features of the system in each unit. Steps on how to correct a false alarm if the system is accidentally activated or misused by residents or visitors. Steps on how to report problems with the emergency call system. In conclusion, while the Rural Housing Service (RHS) no longer mandates the installation of emergency call systems in Multifamily Housing (MFH) units, properties that choose to maintain these systems must ensure they are fully operational and regularly inspected. As advancements in personal alert technology provide reliable alternatives, MFH property owners and managers should prioritize educating tenants on the limitations and proper use of existing emergency call systems. This approach not only helps prevent misunderstandings about the system s capabilities but also enhances tenant safety by encouraging the use of more effective emergency response options.

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.

Determining the Cutoff Date for HUD Required Annual Reexaminations

In dealing with clients on HUD-assisted properties that require annual reexaminations, we still find some confusion among managers relative to the cutoff date by which residents must report for the yearly reexamination interview. Managers of HUD-assisted properties understand that the annual recertification process must begin at most 120 days before the annual reexamination anniversary date. Once managers have distributed the three required recertification reminder notices for the annual reexamination notice, HUD expects Section 8 residents to promptly report for the recertification interview, sign the required paperwork, and provide necessary documentation relating to income and assets. Assuming the resident reports for the annual interview before the cutoff date, the manager must complete the recertification with enough time to provide 30 days' notice of any resulting rent increase. It's crucial to note that if the resident misses the cutoff date, they lose the privilege of a 30-day notice of a rent increase. This underscores the significance of adhering to the timeline and the potential impact on Section 8 residents. The Cutoff Date HUD defines the cutoff date as the tenth day of the 11th month before the annual reexamination date. This cutoff date must be included in the initial 120-day notice to the resident and in the 90 and 60-day reminder notices. Here are two simple methods for remembering the cutoff date. The first method involves starting with the month of the last annual reexamination and adding 11. The result is the 10th day of the 11th month. The second method is to count two months back from the annual recertification month, and the result is again the 10th day of that month. Using the first method, if the last annual reexamination was November 1, 2023, count forward 11 months, including November. The 11th month is September 2024, so the cutoff date for the November 1, 2024 reexamination is September 11, 2024. If using the second method, count two months back from November (not including November), and the cutoff date remains September 21, 2024. To avoid the counting requirement, I recommend that managers keep a chart showing the cutoff date for each recertification month. Here is an example of such a chart: Recertification Month            Cutoff Date January 1                                      November 10 February 1                                    December 10 March 1                                        January 10 April 1                                          February 10 May 1                                            March 10 June 1                                           April 10 July 1                                            May 10 August 1                                       June 10 September 1                                 July 10 October 1                                     August 10 November 1                                  September 10 December 1                                  October 10

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