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A. J. Johnson

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Emotional Support Animals – How “Necessary” Are They?

June 18, 2018

Every apartment manager is familiar with “Emotional Support Animals,” or “ESAs.” I would venture to say there are very few multi-family communities in existence today that don’t have at least one resident with an ESA. And my experience has shown…

IRS Releases Revised Form 8609 with Income Average Election

June 1, 2018

On May 31, 2018, the IRS released a revised Form 8609 adding a third minimum set-aside election – “Average Income”. The release did not include revised or updated Instructions for completion of the form. Owners intending to select the Average…

The State of Fair Housing – 2018

May 29, 2018

The National Fair Housing Alliance (NFHA) has published “Making Every Neighborhood a Place of Opportunity,” a report on the condition of fair housing in the United States in 2018. As much as anything else, the report highlights the Department of…

HUD Publishes 2018 HOME Rent and Income Limits

May 24, 2018

HUD has now published the 2018 income and rent limits for the HOME program. These limits are effective beginning June 1, 2018, and HOME grantees may not use the new rent and income limits until the effective date. Owners and…

HUD Proposed Legislation on Assisted Rents and Other Issues

May 1, 2018

On April 25, 2018, HUD sent a legislative proposal to Congress titled, “Making Affordable Housing Work Act of 2018.” The proposed legislation contains seven sections that, if passed into law by Congress and signed by the President, would significantly impact…

HUD-DOJ Initiative to Fight Sexual Harassment in Housing

April 29, 2018

The Department of Housing and Urban Development (HUD) and the Department of Justice (DOJ) have begun a nationwide initiative intended to combat sexual harassment in housing. This effort includes an interagency task force between HUD and DOJ, an outreach toolkit,…

Additional Guidance on the Income Average Test

April 13, 2018

In order to meet the minimum set-aside, if owners select the new Income Average test, at least 40% of the units in the project must have rents and incomes at the various designated unit income limits selected by the owner…

HUD Publishes 2018 Income Limits

March 31, 2018

On March 30, 2018, HUD published the 2018 income limits for HUD programs as well as for the Low-Income Housing Tax Credit and Tax-Exempt Bond programs. The limits are effective on April 1, 2018. The limits for the LIHTC and…

More Thoughts on the Income Average Test

March 27, 2018

This article is a follow up to the one I posted on March 26, 2018, relating to the Average Income Test which was included in the “Consolidated Appropriations Act, 2018,” as a third set-aside election for Low-Income Housing Tax Credit…

HUD Releases Updated Residents Rights and Responsibilities Brochure – March 2018

March 27, 2018

On March 8, 2018, HUD’s Office of Multifamily Housing Programs released an updated Resident Rights and Responsibilities Brochure. The brochure may be downloaded and printed at www.hud.gov/sites/dfiles/Housing/documents/resident_rights_brochure_8.pdf. This brochure provides a summary of key resident rights and responsibilities for…

Income Averaging Discussion and Examples

March 26, 2018

I posted an article on March 24, 2018, describing the two changes made to the Low-Income Housing Tax Credit (LIHTC) program by the “Consolidated Appropriations Act, 2018,” the increase in credits and the new “Average Income Test.” I want to…

Appropriations Act Contains Two Major Changes to the LIHTC Program

March 24, 2018

The “Consolidated Appropriations Act, 2018” was signed into law by the President on March 23, 2018. The law includes two major changes to the Low-Income Housing Tax Credit Program (IRC §42). Increase in Credits The amount of credit…

Congressional Spending Bill Keeps Funding for Many Housing Programs

March 23, 2018

Congress has approved a $1.3 trillion spending bill designed to provide funding for the federal government for the rest of the fiscal year, which ends September 30. The bill has been sent to the President’s desk for signature (although he…

HOME Funds and Affirmative Fair Housing Marketing Plans

March 17, 2018

In February 2018, the HUD Office of Community Planning and Development issued guidance relating to the requirement that projects funded with HOME funds have an Affirmative Fair Housing and Marketing Plan. This requirement is contained in the HOME final rule…

FAST Act Interim Final Rule Effective March 12, 2018

March 15, 2018

On December 12, 2017, HUD published an interim final rule in the Federal Register that amends the regulatory language for Public & Indian Housing PIH) and Multifamily Housing rental assistance programs. This interim rule went into effect on March 12,…

The Importance of Internal Controls

February 24, 2018

All executives are taught the importance of “internal controls.” Unfortunately, many executives don’t fully understand what is meant by the term “internal controls.” A recent HUD audit of a Section 8 project in Port Arthur, TX serves as a reminder…

Possible Work Requirements and Rent Changes for Affordable Housing

February 19, 2018

I have recently reviewed a draft, unpublished document dated January 17, 2018, from HUD that introduces minimum work requirements for some residents of assisted housing and raises rent for others. This seems to continue the pattern of requiring work…

Rental Assistance – Is It Income or Not?

January 27, 2018

After more than 40 years in the affordable housing business, I still occasionally get the question as to why federal rental assistance – such as Section 8 – is not counted as income. After all, it is a regular, recurring…

Civil Rights Lawsuit Brought Against America’s Largest Landlord for Criminal Screening Procedures

January 26, 2018

In a complaint filed in the United States District Court for the District of Columbia on December 12, 2017, the nonprofit Equal Rights Center (a Washington, DC civil rights group), and the Washington Lawyers Committee alleged that Mid-America Apartments policy…

Independent Contractor or Employee – How to Tell the Difference

January 17, 2018

Affordable housing property managers are required to verify the income of applicants and residents in order to determine both eligibility and (for some programs) rent. The most common type of income requiring verification is employment income and the most common…

Self-Employed Individuals in Affordable Housing Properties

January 14, 2018

One of the most difficult type of income to determine for managers of affordable housing rental properties (e.g. Section 8 or Low-Income Housing Tax Credit [LIHTC]) is self-employment income. Based on the number of issues we see when reviewing the…

NCSHA Publishes 2017 Recommended Best Practices

January 5, 2018

The National Council of State Housing Agencies (NCSHA) has updated its Recommended Practices in Housing Credit Administration for voluntary adoption by Housing Credit Agencies. The organizations first recommended practices were published in 1993, and included recommendations relative to allocation and…

HUD Delays Fair Housing Affirmative Action Rule

January 5, 2018

In what is almost certainly the first step in elimination of the requirement that localities take proactive steps to affirmatively further fair housing, HUD is extending the deadline for submission of assessment of fair housing for Consolidated Plan Participants. This…

Correction to State Minimum Wage Increases

December 28, 2017

I recently published a news item on upcoming minimum wage increases across the United States. One of my clients found an error in the information for New York State and I wanted to correct the item. The correct information for…

Tips for Spotting Elder Care Abuse in Senior Housing

December 27, 2017

I often get expressions of concern from some of my clients who own or manage housing for seniors regarding the well-being of their residents – especially in cases where there may be some type of abuse of the elderly by…

Streamlining HUD Regulations – Interim Final Rule – December 12, 2017

December 26, 2017

The Department of Housing and Urban Development (HUD) published an Interim Final Rule in the Federal Register on December 12, 2017, titled “Streamlining Administrative Regulations for Multifamily Housing Programs and Implementing Family Income Reviews Under the Fixing America’s Surface Transportation…

Minimum Wage Increases in 18 States

December 24, 2017

Happy New Year! For workers in a number of states, the new year will bring an increase in minimum wages. Many of the states already had minimum wage levels higher than the federal minimum of $7.25 per hour Owners…

Additional HUD VAWA Guidance – November 2017

November 26, 2017

The Department of Housing & Urban Development (HUD) recently issued clarifying guidance regarding the Violence Against Women Act (VAWA). The guidance addresses the following areas of VAWA: Applicability; Notice of Occupancy Rights & Certification Form; Emergency Transfers; Lease Addendum; Lease…

Foreign Students in LIHTC Projects

November 24, 2017

Managers of Low-Income Housing Tax Credit Projects (LIHTC) are sometimes faced with having to determine the eligibility of foreign students for occupancy at a Section 42 property. This is actually easier in most cases than determining the eligibility of U.…

Revisions to Senate Tax Bill – November 14, 2017

November 18, 2017

It is expected that the Senate will vote on its version of tax reform after Thanksgiving. The version to be voted on will include several changes to the Low-Income Housing Tax Credit (LIHTC) program and, unlike the House bill, retains…

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