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A. J. Johnson

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2020 Census – What Apartment Managers Need to Know

December 7, 2019

2020 will be a U.S. Census year. Every household will be required to answer a census questionnaire. This includes renters, so landlords and property managers need to know the rules. Questionnaires should be mailed to individual households by April 1,…

New Overtime Rule Issued by the Department of Labor

December 1, 2019

On September 24, 2019, the U.S. Department of Labor (DOL) announced a final rule to make 1.3 million American workers eligible for overtime pay under the Fair Labor Standards Act (FLSA). This is the first change in the overtime regulations…

Rent Guarantors – An Alternative to Rejecting Applicants

November 30, 2019

Owners and managers of LIHTC properties are often faced with applicants who have less than desirable credit, income below the minimum required by the landlord, or no financial history. The common practice in the industry is to reject such applicants,…

Novogradac Study Outlines Expected Income Increases

November 24, 2019

Novogradac & Company has released its study of expected increases in state median incomes for 2020 and 2021. Novogradac estimates that the U.S. median income will increase by just less than 4 percent in 2020 and 3.4 percent in 2021.…

HUD Takes Aggressive Position Regarding Online Verification of Assistance Animals

November 24, 2019

On November 6, 2019, the Department of Housing & Urban Development asked the Federal Trade Commission (FTC) and Bureau of Consumer Protection to investigate websites that sell assistance animal documentation. These certifications – which are almost always bogus – have…

Disability Payments- Calculating & Verifying Income

November 17, 2019

Some applicants and residents of affordable housing properties receive disability payments. These payments may be short-term (temporary) or long-term. Disability payments are intended to offset a reduction in wages for individuals who cannot work due to illness or injury. According…

Bedbugs – A Review of Current HUD Guidance

November 10, 2019

Bedbugs continue to rear their ugly little heads in all types of properties – from luxury hotels to affordable housing. Affordable housing managers are always concerned about what they can and cannot require of residents with regard to bedbug treatments.…

Principal or Primary Residence Issue for LIHTC Housing

November 9, 2019

Virtually all affordable housing programs, including Section 8 and the Low-Income Housing Tax Credit (LIHTC), require that the lessees of the unit use apartments being rented under the applicable program as a “principal residence”. Agencies have not provided a lot…

Special Considerations When Renting to Members of the Military and Veterans

November 3, 2019

While federal and state fair housing law does not ban discrimination based on military or veteran status, many state and local governments do. However, disabled veterans are protected (as is any disabled person) under federal fair housing law. Issues to…

Recent OIG Audits Show Importance of Training in Section 8 Requirements

November 2, 2019

The HUD Office of Inspector General (OIG) recently conducted two management agent audits that illustrate the importance of Section 8 training for management agents. In both cases, OIG recommended a significant repayment of assistance by the project owners due to…

Emancipated Minors and the Determination of Income on Affordable Housing Properties

October 27, 2019

The determination of income for affordable housing developments (e.g., HUD/Rural Development/ LIHTC) depends on whether a household member is an “adult” or a “dependent,” as defined by HUD regulation. The definition of these terms is found in HUD Handbook 4350.3…

Affordable Housing Credit Improvement Act Gaining Support

October 20, 2019

Since its introduction in June 2019, the Affordable Housing Credit Improvement Act has garnered more support and co-sponsorships from Congressional members. If enacted into law, the legislation will increase the annual allocation of low-income housing tax credits by 50 percent…

Social Security COLA – 2020

October 11, 2019

The federal government announced on October 10, 2019 that the Social Security Cost of Live Adjustment (COLA) for 2020 will be 1.6%. This increase will provide an additional $24 per month for the average retiree. This is significantly less than…

NCSHA Provides Updated LIHTC Compliance Forms

October 9, 2019

The National Council for State Housing Agencies (NCSHA) has released updated model compliance forms for housing credit developments. Virtually all Housing Credit agencies (HCAs) require Housing Credit development owners to use specific forms in their compliance reporting. NCSHA, in collaboration…

HUD Publishes Proposed Rule on Implementation of The Housing Opportunity Through Modernization Act of 2016 (HOTMA)

September 22, 2019

HUD published a proposed rule implementing The Housing Opportunity Through Modernization Act of 2016 (HOTMA) in the federal register on September 17, 2019. HOTMA was enacted on July 29, 2016. This rule would make sweeping changes to current HUD programs,…

Fair Housing Definition of a Dwelling

September 22, 2019

The Fair Housing Act (FHA) applies to “dwellings.” This raises the technical issue of what a dwelling is. The answer is not as simple as one may think. The statute’s definition of a dwelling includes any building occupied or intended…

Information to Obtain When Assuming Management of a LIHTC Property

September 15, 2019

When assuming management of a Low-Income Housing Tax Credit (LIHTC) property during the 15-year compliance period, there is critical information the new agent must have. The following list provides a good starting point for the information to obtain when assuming…

Determining the Income of LIHTC Applicants and Residents

September 14, 2019

The determination of income is a primary requirement when determining the eligibility of applicants and residents at Low-Income Housing Tax Credit (LIHTC) Properties. While individual Housing Finance Agencies (HFAs) have their own requirements relating to the determination of income, there…

RAD First Component – Eligibility, Conversion Requirements, and Financing Considerations

September 9, 2019

On September 5, 2019, HUD issued Notice H-2019-09, PIH-2019-23 (HA), Rental Assistance Demonstration – Final Implementation, Revision 4. This revised notice provides program instructions for the Rental Assistance Demonstration (RAD) Program, including eligibility and selection criteria. Background The RAD program…

Dealing with Resident Owned Real Estate at Affordable Housing Properties

September 7, 2019

When determining the income of a household at an affordable housing complex with income limitations, the valuation of resident owned assets and the calculation of real or possible income from those assets is critical to the process. Assets are items…

HUD Issues Revised Final Implementation Notice for RAD Program

September 5, 2019

On September 5, 2019, HUD issued Notice H-2019-09, PIH-2019-23 (HA), Rental Assistance Demonstration – Final Implementation, Revision 4. This revised notice provides program instructions for the Rental Assistance Demonstration (RAD) Program, including eligibility and selection criteria. Background The RAD program…

Hoarding – Reasonable Accommodation Requirements Under Fair Housing Law

September 1, 2019

A “reasonable accommodation” (RA) is the request for a waiver of a policy, practice, or procedure of a housing provider in order to provide equal access and opportunity for people with disabilities. Any request for an RA must be approved…

Rental Application/Lease/Lease Riders – Critical LIHTC Documents

August 31, 2019

It is important that early in the application process, prospects be advised of the applicable income limits and student requirements for occupancy in a Low-Income Housing Tax Credit (LIHTC) property. Management should explain that the total gross income of all…

HUD Issues Guidance on Tenant Notification Requirements Relating to Physical Inspections

August 27, 2019

On July 8, 2019, the Department of Housing & Urban Development (HUD) issued a memo for HUD staff and multifamily owners and agents (O/As) clarifying owner responsibilities to notify residents in advance of physical inspections and to make final inspection…

Resident Protections in a Low-Income Housing Tax Credit Property — “Good Cause” Termination

August 24, 2019

Every Section 42 Low-Income Housing Tax Credit (LIHTC) property must have a recorded Extended Use Agreement (EUA). One of the requirements of an EUA is that it prohibit eviction or termination of occupancy by a low-income resident without “good cause.”…

Affordable Housing Platforms of Presidential Candidates

August 18, 2019

According to the National Low-Income Housing Coalition’s (NLIHC) 2019 Out of Reach report, a full-time worker needs to earn an average hourly wage of $22.96 to afford a modest, two-bedroom rental home in the United States. This amount is called…

Resident Manager Unit in a LIHTC Property – A Refresher

August 17, 2019

The ability of a Low-Income Housing Tax Credit (LIHTC) project to utilize an apartment as a resident manager unit was established by IRS Revenue Ruling 92-61 – way back in 1992. The ruling established that the adjusted basis of a…

Administration to Issue Guidance Regarding HUD’s Interpretation of Disparate Impact in Fair Housing

August 16, 2019

On Monday, August 19, 2019, the Trump administration will introduce a new rule that may change the way the federal government enforces fair housing law, making it harder for people to file fair housing discrimination complaints. The proposed regulation from…

Court Rules that Voucher Fair Housing Protection Does Not Violate Rights of Owner

August 11, 2019

In a June 2019 ruling (Fletcher Props v. City of Minneapolis), the Minneapolis Appeals court reversed a lower court ruling and found that a city ordinance prohibiting apartment owners from refusing to accept voucher holders did not violate the owner’s…

Responsibilities of Owners of HUD-Assisted Properties Before and After Natural Disasters

August 10, 2019

Now that we are in hurricane season, it is a good idea for all properties to assess preparedness for storms and other natural disasters. While this is recommended for any property, it is a requirement for HUD-assisted projects. The Department…

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