Posts by A. J. Johnson

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A. J. Johnson

A. J. Johnson

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The IRS and Extended Use Agreements

September 20, 2015

The IRS and Extended Use Agreements As outlined in §42 (h) (6), all LIHTC properties allocated credits after 1989 must have an extended use agreement (EUA). The agreement is entered into by the taxpayer and the Housing Credit Agency…

HUD Clarifications Regarding Completion of Utility Allowances

September 19, 2015

A. J. Johnson

I sent a memo to clients on June 29, 2015, regarding HUD Notice H 2015-04, which was published by HUD on June 22, 2015. This Notice outlined revised HUD requirements relative to the Methodology for Completing a Multifamily Housing Utility…

Definition of a Parent for the Section 42 Student Rule

September 16, 2015

A. J. Johnson

Section 42 (i) (3) (D) states that certain students do not disqualify a unit from being low-income for LIHTC purposes. Five exceptions are outlined in the Code, one of which states “A unit shall not fail to be treated as…

HUD Clarification on HOME Rental Requirements

September 10, 2015

A. J. Johnson

HUD recently provided guidance on components of the HOME program that have raised questions. Following are the clarifications that apply to the use of HOME funds with multifamily housing. HOME funds cannot be used in public housing units that receive…

Determining the Cash Value of and Income from Annuities

September 8, 2015

A. J. Johnson

Determining the Cash Value of and Income from Annuities There is some confusion among managers of affordable rental housing regarding how to determine the value of and income from annuities. Part of the confusion is the result of a…

Claiming Credits without an IRS Form 8609 – Guidance from the IRS Audit Guide

September 6, 2015

A. J. Johnson

Claiming Credits without an IRS Form 8609 – Guidance from the Audit Guide IRC §42(l)(1) requires that taxpayers complete a certification with respect to the first year of the credit period. This certification is made by completing Part II…

HUD Final Rule on Streamlining the Portability of the Voucher Program, August 20, 2015

September 2, 2015

A. J. Johnson

On August 20, 2015, HUD published a Final Rule in the Federal Register titled, “Housing Choice Voucher Program: Streamlining the Portability Process.” This final rule amends HUD’s regulations governing portability in the Housing Choice Voucher (HCV) program. Portability is a…

Section 42 Audit Guide- Techniques Used During Audit

September 2, 2015

A. J. Johnson

Audit Guide Chapter 3- Techniques Used During Audit The IRS audit process includes the accumulation of evidence for evaluating the accuracy of a taxpayer’s tax return. Evidence includes taxpayer testimony, books and records, examiner observations, and third party documents.…

The IRS Section 42 Audit Guide: How Tax Returns for LIHTC Properties are Analyzed for Audit Potential

August 23, 2015

A. J. Johnson

How Tax Returns for LIHTC Properties are Analyzed for Audit Potential The IRS §42 Audit Guide provides guidance for analyzing tax returns before contacting taxpayers to determine the specific tax credit issues that should be audited. Prior to any…

HUD Moving Aggressively on Affirmatively Furthering Fair Housing

August 17, 2015

A. J. Johnson

The Department of Housing and Urban Development (HUD) is moving forward aggressively with the departments new “Affirmatively Furthering Fair Housing” campaign to desegregate the country’s primarily white neighborhoods. Rockford, IL will be an early test for HUD’s ability to impose…

Role of the IRS and State Agencies in Implementing the LIHTC Program

August 16, 2015

A. J. Johnson

With the revision of the IRS Audit Guide for the Low-Income Housing Tax Credit Program, the IRS is providing a comprehensive examination of the requirements of the program. Chapter 1 of the Guide provides and introduction and overview of the…

Proposed Rural Housing Service Rule will Reduce Financial Reporting Requirements

August 14, 2015

A. J. Johnson

On August 6, 2015, the Rural Housing Service (RHS) published a proposed rule in the Federal Register that will amend current regulations to change program requirements regarding financial reporting. The proposed change will align RHS requirements with those of the…

IRS Publishes Revised LIHTC Audit Guide – August 11, 2015

August 9, 2015

A. J. Johnson

The IRS has published a revised Audit Guide for the Low-Income Housing Tax Credit Program, with a revision date of August 11, 2015. The Guide is intended to assist IRS examiners when auditing Partnerships that utilize the Federal Low-Income Housing…

Assistance Animals – A Reminder on What is Required

August 5, 2015

A. J. Johnson

On July 15, 2015, HUD charged the owners and manager of Viking Villas, a 36-unit apartment complex in Sioux Falls, SD, with a violation of the Fair Housing Act for refusing to grant a reasonable accommodation to a disabled resident…

Rural Housing Service Accepting Applications for Multifamily Preservation and Revitilization (MPR)

August 3, 2015

A. J. Johnson

On August 3, 2015, the Rural Housing Service published a Notice in the Federal Register announcing the timeframe to submit applications to participate in a demonstration program to preserve and revitalize existing Rural Rental Housing (RRH) projects under Section 514,…

GAO Recommends Joint HUD – IRS Oversight of LIHTC Program

August 2, 2015

A. J. Johnson

Responding to a request from Senator Charles Grassley, Chairman of the Senate Judiciary Committee, the Government Accountability Office (GAO) as performed a review of the oversight and administration of the Low-Income Housing Tax Credit (LIHTC) Program. The results of the…

Affirmatively Furthering Fair Housing – HUD Final Rule

July 18, 2015

A. J. Johnson

On July 8, 2015, the Department of Housing & Urban Development (HUD) issued a final rule on the procedures that must be followed by localities with regard to affirmatively furthering fair housing. The rule directs HUD program participants to take…

RAD – Revised Program Notice PIH-2012-32, REV-2

July 6, 2015

A. J. Johnson

On June 26, 2015, HUD published a Notice in the Federal Register revising some of the rules of the Rental Assistance Demonstration (RAD) Program. HUD’s original notice on the program was published on June 26, 2012. The RAD program provides…

HUD Guidance on First Amendment Conflict with Fair Housing

July 4, 2015

A. J. Johnson

HUD Guidance on First Amendment Conflict with Fair Housing The Department of Housing & Urban Development (HUD) published Notice FHEA-2015-01 on May 26, 2015. The title of the Notice is Substantive and Procedural Limitations on Filing and Investigating Fair…

HUD Notice H-2015-04, Methodology for Completing a Multifamily Housing Utillity Allowance

June 29, 2015

A. J. Johnson

On June 22, 2015, HUD issued Notice H-2015-04, Methodology for Completing a Multifamily Housing Utility Analysis. The Notice provides instructions to owners and management agents for completing the utility allowance required at the time of the annual or special adjustment…

Supreme Court Decision on Disparate Impact, June 25, 2015

June 29, 2015

A. J. Johnson

Supreme Court Rules on Disparate Impact On June 25, 2015, the United States Supreme Court issued a landmark ruling on Texas Department of Housing & Community Affairs v. The Inclusive Community Project, Inc. The ruling found that housing policies…

Revision to RD Section 538 Guaranteed Loan Program Replacement Reserve Requirements

June 18, 2015

A. J. Johnson

The Rural Housing Service published a Notice in the Federal Register on June 18, 2015, amending its regulation to change the requirements of the reserve account for direct Multifamily Housing (MFH) loans. The purpose of the Notice is to address…

Nonprofit Material Participation Requirements

June 6, 2015

A. J. Johnson

Section 42 (h) (5) of the Internal Revenue Code requires that Housing Finance Agencies set aside at least ten percent of their annual allocation for use by non-profit entities. This “non-profit pool” is available only to Qualified Nonprofit Organizations and…

RHS and HUD Merger Potential

May 29, 2015

A. J. Johnson

During a recent hearing before a House Financial Services panel, a representative of the Federal Housing Administration (FHA) and Housing & Insurance Subcommittee Chair Blaine Luetkemeyer (R-MO) argued that the Rural Housing Service (RHS) should be moved from the Department…

Good Cause Evictions – New IRS Guidance

May 26, 2015

A. J. Johnson

The IRS issued a Chief Counsel Advice (CCA) memorandum on March 26, 2015 on the subject of Noncompliance Resulting from Conflicting Program Requirements in the Low-Income Housing Tax Credit program. The memorandum was issued in order to change the advice…

Familial Status Case – Issue of Separate Sex and Bedrooms, April 2015

May 25, 2015

A. J. Johnson

On April 30, 2015, HUD entered into a Conciliation Agreement with Piilani Gardens, LLC regarding alleged familial status discrimination at Piilani Gardens Apartments in Kihei, Hawaii. Piilani Gardens is a family project, but two of the 18 buildings in…

Familial Status Discrimination Case Warns Against Unreasonable Play Area Rules for Children

May 25, 2015

A. J. Johnson

One of the Questions I often am asked during fair housing training is whether children can be restricted from playing in the common areas of apartment communities. The answer depends on the specifics of the community, but generally, rules relating…

HUD Notice CPD-15-02, Appropriate Placement for Transgender Persons in Single Sex Emergency Shelters and Other Facilities – February 20, 2015

May 17, 2015

A. J. Johnson

HUD published Notice CPD-15-02 on February 20, 2015, providing further guidance on the placement of transgender persons in single-sex emergency shelters and other facilities. This guidance is provided in order to clarify the final rule published by HUD on February…

Federal Preemption of State Landlord-Tenant Law

April 24, 2015

A. J. Johnson

A recent ruling by the Wisconsin Supreme Court reaffirms the constitutional doctrine of Federal preemption. In Milwaukee City Housing Authority v. Cobb, March 2015, the Milwaukee Authority sued to evict a resident because he had violated the terms of his…

Verification of Social Security and Supplemental Security (SSI) Payments

April 11, 2015

A. J. Johnson

Verification of Social Security and Supplemental Security Income (SSI) Payments Managers of affordable housing properties (e.g., Section 8, LIHTC, Section 515, etc.) often struggle with the verification of income from Social Security (SS) or SSI. While verification of such…

Posts by A. J. Johnson

The IRS and Extended Use Agreements

HUD Clarifications Regarding Completion of Utility Allowances

Definition of a Parent for the Section 42 Student Rule

HUD Clarification on HOME Rental Requirements

Determining the Cash Value of and Income from Annuities

Claiming Credits without an IRS Form 8609 – Guidance from the IRS Audit Guide

HUD Final Rule on Streamlining the Portability of the Voucher Program, August 20, 2015

Section 42 Audit Guide- Techniques Used During Audit

The IRS Section 42 Audit Guide: How Tax Returns for LIHTC Properties are Analyzed for Audit Potential

HUD Moving Aggressively on Affirmatively Furthering Fair Housing

Role of the IRS and State Agencies in Implementing the LIHTC Program

Proposed Rural Housing Service Rule will Reduce Financial Reporting Requirements

IRS Publishes Revised LIHTC Audit Guide – August 11, 2015

Assistance Animals – A Reminder on What is Required

Rural Housing Service Accepting Applications for Multifamily Preservation and Revitilization (MPR)

GAO Recommends Joint HUD – IRS Oversight of LIHTC Program

Affirmatively Furthering Fair Housing – HUD Final Rule

RAD – Revised Program Notice PIH-2012-32, REV-2

HUD Guidance on First Amendment Conflict with Fair Housing

HUD Notice H-2015-04, Methodology for Completing a Multifamily Housing Utillity Allowance

Supreme Court Decision on Disparate Impact, June 25, 2015

Revision to RD Section 538 Guaranteed Loan Program Replacement Reserve Requirements

Nonprofit Material Participation Requirements

RHS and HUD Merger Potential

Good Cause Evictions – New IRS Guidance

Familial Status Case – Issue of Separate Sex and Bedrooms, April 2015

Familial Status Discrimination Case Warns Against Unreasonable Play Area Rules for Children

HUD Notice CPD-15-02, Appropriate Placement for Transgender Persons in Single Sex Emergency Shelters and Other Facilities – February 20, 2015

Federal Preemption of State Landlord-Tenant Law

Verification of Social Security and Supplemental Security (SSI) Payments

Online Training

Guidance

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