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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…

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

October 25, 2014

A. J. Johnson

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

A. J. Johnson

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…

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

October 9, 2014

A. J. Johnson

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

A. J. Johnson

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

A. J. Johnson

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

A. J. Johnson

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…

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

August 24, 2014

A. J. Johnson

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

A. J. Johnson

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

A. J. Johnson

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 Implements HERA Changes to Tenant Based and Project Based Vouchers

July 6, 2014

A. J. Johnson

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

A. J. Johnson

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,”…

HUD Leadership Change

May 29, 2014

A. J. Johnson

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

A. J. Johnson

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

A. J. Johnson

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

A. J. Johnson

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…

Promise Zones Offer Potential for Affordable Housing

April 27, 2014

A. J. Johnson

In the 2013 State of the Union address, the President announced the creation of “Promise Zones. (PZ)” The goal of these zones is to provide a mechanism for a partnership between the federal government and local governments in order to…

HUD Releases 2014 HOME Income and Rent Limits

April 18, 2014

A. J. Johnson

HUD has released the 2014 Income and Rent limits for the HOME program. The new limits will be effective May 1, 2014. To obtain the new limits go to www.onecpd.info/news/2014-home-income-and-rent-limits-published/. Keep in mind that if HOME funds are combined with…

HUD to Ease PHA Income Verification Requirements

April 11, 2014

A. J. Johnson

HUD is in the process of preparing new rules that will allow public housing authorities (PHAs) to drastically alter the income verification requirements for public housing and Section 8 Voucher tenants. These changes could impact owners of Low-Income Housing Tax…

DOJ Aggressively Pursuing Accessibility Cases

March 8, 2014

A. J. Johnson

On February 24, 2014, the Department of Justice announced that a federal district court in Jackson, MS approved a settlement of a DOJ lawsuit against the original owners and developers of nine apartment complexes in Mississippi, Louisiana and Tennessee. The…

Draft House Tax Reform Act of 2014 Retains (but changes) LIHTC Program

February 28, 2014

A. J. Johnson

On February 26, 2014, the House Ways & Means Committee under Chairman David Camp released a discussion draft Tax Reform Act of 2014. While tax reform almost certainly not going to happen in 2014, this draft proposal is significant in…

2014 Appropriations Act Makes Changes to Program Rules

February 23, 2014

A. J. Johnson

The President signed the 2014 Omnibus Appropriations Act into law on January 17, 2014. In addition to funding for the Nation’s various housing programs, the Act also made some substantive changes to the law relative to Housing Choice Vouchers and…

Farm Bill Protects Rural Area Designation

February 5, 2014

A. J. Johnson

After a three-year struggle, the Farm Bill (H.R. 2642) was finally passed by Congress on February 4, 2014, and will now go to the President, who has indicated that he will sign the bill into law. The 357 page bill…

Nonprofit Set-Aside Issues for LIHTC Properties

January 2, 2014

A. J. Johnson

IRC §42(h)(5) requires that a portion of each state’s annual credit ceiling be set aside for allocation to projects involving qualified nonprofit organizations. Specifically, at least 10% of the state’s allocable credit must be set-aside for a nonprofit pool. …

HUD Amends Verification Requirements

December 26, 2013

A. J. Johnson

On December 10, 2013, HUD put online a revised transmittal for Handbook 4350.3, Chg. 4. It provided clarification for verification techniques – primarily those relating to EIV disputes and discrepancies. There is also an important change to Appendix 3, Acceptable…

Developer Fees in Eligible Basis

November 2, 2013

A. J. Johnson

The most important calculation in the LIHTC program – at least in terms of credit generation – is qualified basis. Qualified basis is directly related to the amount of eligible basis (Eligible Basis times Applicable Fraction = Qualified Basis). So,…

Small HUD Projects Get Break from Financial Reporting

October 21, 2013

A. J. Johnson

HUD projects that receive less than $500,000 in total federal financial assistance annually no longer have to have full financial audits performed. HUD Notice 2013-23 eliminates the audit requirement for these projects regardless of existing regulatory provisions. Owners of such…

HUD Mortgage Insurance Premiums for LIHTC Projects

September 26, 2013

A. J. Johnson

HUD published a Notice in the Federal Register on September 26, 2013, clarifying that conventional or FHA-insured projects with existing LIHTC’s, and other affordable projects that meet LIHTC affordability criteria are eligible for the LIHTC Mortgage Insurance Premium (MIP) rate.…

Landmark Fair Housing Decision Goes Against Hazleton, PA

September 15, 2013

A. J. Johnson

On July 26, 2013, a Federal District court issued an opinion that may once and for all answer the question as to whether local governments can enforce laws that relate to the immigration status of individuals. The case is Lozano…

HUD Changes to Appendix 3 of 4350.3 – Acceptable Forms of Verification

September 4, 2013

A. J. Johnson

Along with the recent publication of Change 4 to HUD Handbook 4350.3, HUD also amended Appendix 3, Acceptable Forms of Verification. Some of the changes are worth noting, as follows (changes are shown in parentheses): Assets disposed of for less…

Featured

Imputed Rate for Assets Change – Effective February 1, 2015

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

Social Security COLA Announced

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

Supreme Court to Hear Disparate Impact Fair Housing Case

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

Familial Status Discrimination Case Illustrates Importance of Treatment of Children

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

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

Uniform Relocation Act Requirements

HUD Implements HERA Changes to Tenant Based and Project Based Vouchers

HUD Notice on Implementation of FY 2014 Appropriations Provisions

HUD Leadership Change

HUD Updates List of Federally Mandated Income Exclusions

Hobby vs. Self-Employment

VAWA Model Emergency Transfer Plan for RD Multifamily Housing Projects

Promise Zones Offer Potential for Affordable Housing

HUD Releases 2014 HOME Income and Rent Limits

HUD to Ease PHA Income Verification Requirements

DOJ Aggressively Pursuing Accessibility Cases

Draft House Tax Reform Act of 2014 Retains (but changes) LIHTC Program

2014 Appropriations Act Makes Changes to Program Rules

Farm Bill Protects Rural Area Designation

Nonprofit Set-Aside Issues for LIHTC Properties

HUD Amends Verification Requirements

Developer Fees in Eligible Basis

Small HUD Projects Get Break from Financial Reporting

HUD Mortgage Insurance Premiums for LIHTC Projects

Landmark Fair Housing Decision Goes Against Hazleton, PA

HUD Changes to Appendix 3 of 4350.3 – Acceptable Forms of Verification

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