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A. J. Johnson

A. J. Johnson

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HUD Stiffens Tenant Appeal Process Regarding Tenant Organizations

November 13, 2014

On September 14, 2014, HUD issued Notice H 2014-12 (Implementation of Tenant Participation Requirements in Accordance with 24 CFR Part 245). This Notice outlines available sanctions and monetary penalties as enforcement mechanisms when owners and managers violate HUD requirements relative…

Employee and Security Units – IRS Audit Guide (October 2014)

November 7, 2014

The recently released final Section 42 Audit Guide provides some interesting guidance relative to the treatment of employee and security units in a LIHTC project. The Guide confirms that the cost of such a unit is includable in eligible basis,…

Imputed Rate for Assets Change – Effective February 1, 2015

November 7, 2014

HUD issued Notice H 2014-15 on October 31, 2014 changing the imputed rate for assets from 2% to .06%. Beginning on February 1, 2015, HUD will annually publish the passbook savings rate (i.e., imputed rate) to be used for…

Citi Bank Loan Program

October 27, 2014

Developers looking to put together LIHTC deals in California, New York, Illinois, Massachusetts, Delaware, Washington DC, and Florida have a new financing option available to them. Citi Bank has released guidance for its new affordable rental-housing program – The…

Reduction in Rental Assistance for Section 515 Properties Reduce Pre-Payment Incentives

October 25, 2014

Federal funding reductions have significantly reduced the amount of rental assistance (RA) available for Rural Development Section 515 projects. As a result of this reduction, the Rural Development Service (RD) issued an Unnumbered Letter in July 2014 limiting the use…

Social Security COLA Announced

October 22, 2014

The federal government announced on October 22, 2014 that the Social Security Cost of Live Adjustment (COLA) for 2015 will be 1.7%. This will increase the monthly pension for the average retired worker by $22 per month. This is up from…

Tenant Selection Plan – Comprehensive Overview of HUD Requirements (October 2014)

October 17, 2014

Tenant Selection Plan – Comprehensive Overview of HUD Requirements (October 2014) Following are the basic required elements of HUD required Tenant Selection Plans. Managers and owners of properties requiring such plans should be aware of the following requirements: Income Limits…

HUD Makes Fair Housing Awards in 42 States and DC – October 15, 2014

October 15, 2014

The Department of Housing and Urban Development announced today (October 15, 2014) that it has awarded $38.3 million to more than 100 fair housing organizations in 43 states and the District of Columbia to address housing discrimination. The competitive grants…

Local Ordinance May Not Be Adequate for Refusal to Allow Certain Breeds as Companion Animals

October 9, 2014

In Warren v. Delvista Towers Condominium Association, Inc. July 2014, a resident sued a a community for failure to accommodate his disability by allowing him to keep a pit bull as an emotional support animal. Miami-Dade County prohibits pit bulls…

Supreme Court to Hear Disparate Impact Fair Housing Case

October 8, 2014

The United States Supreme Court has agreed to accept a petition to consider the case Texas Department of Housing & Community Affairs (TDHCA) v. Inclusive Communities. Background Inclusive Communities successfully argued to the lower courts that TDHCA allocated low-income…

Bill Requiring Increases in Minimum Rents for Public Housing, Vouchers and PB Section 8 Introduced in Congress

October 5, 2014

On September 18, 2014, H.R. 5632 was introduced in Congress in order to “reform and update the flat rent structure for public housing.” The bill has been referred to the House Committee on Financial Services, and has very little chance…

Familial Status Discrimination Case Illustrates Importance of Treatment of Children

October 3, 2014

On Friday, July 25, 2014, the United States Department of Justice announced an agreement with the owners of Woodland Garden Apartments in Fremont, California, settling allegations of discrimination against families with children. Under the Consent Order, the owners are required…

Changes in Administration of State Supplementary Payments (SSP)

October 1, 2014

Almost all states have a Supplementary Payments (SSP) Program, which supplements the Federal Supplemental Security benefit (SSI), which is administered by the Social Security Administration (SSA). In the past, many states had their program administered by the SSA, making it…

HUD Issues Notice Regarding LGBT Protections

September 16, 2014

On August 20, 2014, HUD published Notice PIH 2014-20 (HA), which provides details on the final rule published by HUD on February 3, 2012 guaranteeing equal access to housing in HUD programs regardless of Sexual Orientation or Gender Identity. This…

HUD REAC Rules Updated (August 12, 2014)

August 31, 2014

HUD released HUD Compilation Bulletin on August 12, 2014, providing updated guidance to REAC inspectors regarding when certain areas of properties are not to be inspected for REAC purposes and changing the way certain inspection elements will be reviewed. These…

Violence Against Womens Act (VAWA) Recommendations Relative to the LIHTC Program

August 24, 2014

United States Code Title 42, Chapter 136, Subchapter III, effective March 7, 2013, provides housing protections for victims of domestic violence, dating violence, sexual assault, and stalking. The following housing programs are required to comply with the VAWA: *Supportive…

RD Proposed Amendment to 3560 Regarding Reserve Accounts (August 2014)

August 15, 2014

On August 13, 2014, the Rural Housing Service (RHS) issued a Proposed Rule to amend 7 CFR 3560.306 (e) (2) to change the requirements of the Reserve Account for Section 515 Rural Rental Housing Projects that also have funding from…

Uniform Relocation Act Requirements

August 2, 2014

Overview of the Uniform Relocation Act (URA) The Uniform Act, passed by Congress in 1970, is a federal law that establishes minimum standards for federally funded programs and projects that require the acquisition of real property or displace persons from…

HUD Update of Tenant Participation Requirements – June 13, 2014

July 20, 2014

On June 13, 2014, HUD issued a memorandum amending Notice H 2012-21, Implementation of Tenant Participation Requirements. Section F of the Notice was amended, and clarifies what information must be included in written complaints from tenants. The Notice…

Insufficent Recertification Notices Void Landlord Right to Collect Contract Rent

July 18, 2014

If owners and managers of HUD Project-Based Section 8 properties doubt the importance of ensuring that tenant notices contain the exact wording required by HUD, a recent court case out of New York [Lambert Houses Redevelopment Company v. Jobi, May…

Medical Marijuana and Multifamily Housing

July 14, 2014

Medical Marijuana and Multifamily Housing An increasing number of states are legalizing the use of marijuana for medical purposes. Alaska, Arizona, California, Colorado, Connecticut, DC, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Montana, Nevada, New Hampshire, New Jersey,…

HUD Implements HERA Changes to Tenant Based and Project Based Vouchers

July 6, 2014

On June 25, 2014, HUD published a notice implementing changes made by the Housing & Economic Recovery Act (HERA) of 2008 to the Tenant Based and Project Based Voucher Programs. Two changes will make it easier to use Project-based…

HUD Notice on Implementation of FY 2014 Appropriations Provisions

June 29, 2014

On June 25, 2014, HUD published a Notice establishing the terms and conditions by which HUD will implement changes to the statutory definition of a “public housing agency” (PHA), the frequency of housing inspections, the statutory definition of “extremely low-income,”…

General Partner Removal – Rights of the Limited Partner

June 29, 2014

The Delaware Supreme Court recently decided a case important to investors and developers of Low-Income Housing Tax Credit housing. The case (DV Realty Advisors LLC v. Policemen’s Annuity and Benefit Fund of Chicago, DEFAX Case No. D65838 {Del. 2013}), is…

Medical Marijuana Presents Management Challenges

May 30, 2014

As of April 2014, 21 states and the District of Columbia have legalized medical marijuana, and two states – Washington and Colorado – have legalized recreational use of marijuana. This creates a number of issues for owners and managers of…

HUD Leadership Change

May 29, 2014

President Obama has nominated San Antonio Mayor Julian Castro to be the next Secretary of Housing & Urban Development. Castro will replace Shaun Donovan, who has been HUD Secretary since the election of Obama. Obama will nominate Donovan to be…

HUD Updates List of Federally Mandated Income Exclusions

May 29, 2014

HUD is required to periodically publish in the Federal Register a notice that lists amounts specifically excluded by any Federal Statute from consideration as income for purposes of determining eligibility or benefits in a HUD program. The last such notice…

Hobby vs. Self-Employment

May 3, 2014

As managers of affordable housing, we are often faced with applicants and residents who refer to themselves as “self-employed,” but are unable to adequately document their income. Such individuals are not generally considered self-employed since persons who are self-employed are…

VAWA Model Emergency Transfer Plan for RD Multifamily Housing Projects

May 2, 2014

On February 10, 2014, the Rural Development Service issued Administrative Notice (AN) No. 4747 (1944-N), titled “Implementation of 42 U.S.C. 14043-e 11 of the Violence Against Women (VAWA) Reauthorization Act in Rural Development’s Multi-Family Housing Programs.” The AN provides guidance…

Say No to Voluntary MORs

May 2, 2014

42 States still do not have approved Performance Based Contract Administrators (PBCAs) for the review of Section 8 properties. PBCAs in these states have no authority to conduct any type of Management & Occupancy Review (MOR)- even voluntary or “informal”…

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