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Understanding the Role of a Notary

February 29, 2020

In the affordable housing industry, verification of income and other eligibility elements is a common requirement. In most cases, third party verification is required, meaning that the provider of the income provides a verification of the income. While such verifications…

Landlord Agrees to Abandon Two-Person Per Bedroom Occupancy Policy in Conciliation Agreement

February 26, 2020

In the case of Inland Fair Housing & Mediation Board (IFHMB) v. Edwin A. Muradliyan Living Trust, Pacific Diversified No. 4 LLC, Cheri Todaro, Deanna Cordova, the respondent Landlord agreed to abandon a two-person per bedroom occupancy policy as part…

NSPIRE – HUD Replacement for REAC Protocol is Moving Forward

February 22, 2020

The Department of Housing & Urban Development (HUD) is well underway in the overhaul of its Real Estate Assessment Center (REAC) physical inspection protocol. The REAC inspection process will eventually be replaced with a new physical inspection procedure known as…

HUD Publishes 2019 Income Limits for Average Income Minimum Set-Aside

February 22, 2020

The Department of Housing & Urban Development (HUD) has published the income limits to be used by Low-Income Housing Tax Credit properties for which the Average Income (AI) Minimum Set-Aside is elected. As expected, the AI limits use the HUD…

Assistance Animal Requests Under the Fair Housing Act – HUD Issues Important New Guidance

February 8, 2020

On January 28, 2020, HUD issued FHEO Notice 2020-01. The subject of the Notice is: Assessing a Person’s Request to Have an Animal as a Reasonable Accommodation (RA) under the Fair Housing Act (FHA) Purpose of the Notice The Notice…

Special Needs Trust- Determination of Annual Income

February 1, 2020

Managers of affordable housing properties (e.g., Section 8 or LIHTC) must consider whether a household has assets that may contribute to the income of the household. Common assets include cash-on-hand, bank accounts, and retirement accounts. A less common type of…

IRS Issues Ruling on Determination of Income Limits for Average Income Minimum Set-Aside

January 31, 2020

On January 29, 2020, the IRS released Revenue Ruling 2020-4. This ruling outlines the requirements for determining the designated income limits under the Average Income (AI) Minimum Set-Aside. The Conference committee report for the Tax Reform Act of 1986 stated…

2020 Mileage Rates

January 20, 2020

The IRS has issued the mileage rates for 2020, including the rate for miles driven for medical purposes. This is an important rate for Section 8 and Rural Development Properties since elderly households may deduct such mileage as a medical…

What Affordable Housing Managers Need to Know About Changes in Retirement Laws

January 5, 2020

Just before adjourning for the Christmas/New Year holiday, Congress included, and the President signed, the Setting Every Community Up for Retirement Enhancement (SECURE) Act in the federal government spending bill. This action provides the most significant changes in retirement law…

Rules for Electronic Waiting Lists at Section 8 Properties

January 4, 2020

In most cases, HUD projects are required to maintain waiting lists. A waiting list is a formal record of applicants for housing assistance that identifies the applicant’s name, date and time of application, selection preferences claimed, income category, and the…

Minimum Wage to Increase in Many Areas

January 1, 2020

In 2020, 21 states will increase their minimum wage requirements for workers beginning January 1, 2020 and Connecticut, Nevada, and Oregon (and possibly Delaware) will have increases later in the year. Affordable housing managers responsible for determining the income of…

HUD Publishes 2020 OCAF Rent Adjustments

December 21, 2019

On November 22, 2019, the Department of Housing & Urban Development (HUD) published the Operating Cost Adjustment Factors (OCAF) for 2020. These factors apply to project-based assistance contracts issued under Section 8 of the Housing Act of 1937 (the “Section…

REAC Requirements for Emergency Call Systems

December 8, 2019

On October 11, 2019, the Department of Housing & Urban Development (HUD) issued Notice PIH 2019-25, which provides guidance on emergency call systems in public housing. The notice applies to all PHAs and localities that operate public housing. It should…

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,…

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.…

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…

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…

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…

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…

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…

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