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Monitoring Fees for HOME Projects

January 19, 2019

Agencies that administer HOME funds are known as Participating Jurisdictions or “PJs.” For HOME-assisted projects with commitments on or after August 23, 2013, the HOME program regulations [24 CFR 92.214(b)(1)(i)] allow PJs and state recipients to charge owners if rental…

Documentation of Child Custody and Support

January 15, 2019

One of the most vexing problems faced by managers of affordable housing is how to handle the counting of children when full time residence in a unit is not clear. There are many households with children in shared custody situations.…

The Shutdown and Affordable Housing

January 6, 2019

As we enter the third week of the partial government shutdown, the impact is beginning to affect more than just the unfortunate federal workers who are not being paid. Some of America’s poorest families may soon be hit by the…

Occupancy Standards and Fair Housing

December 2, 2018

Every owner and manager of multifamily properties must develop occupancy standards for their property. It is these standards that determine how many people may live in a unit. When deciding on an occupancy standard, the key question is always –…

Verifying the Income of Ride-Hailing Drivers

November 24, 2018

Verifying the Income of Ride-Hailing Drivers A recent study by the JP Morgan Chase Institute showed that from late 2013 to the Spring of 2018, there was a 2,000 percent increase in the number of Uber and Lyft drivers. This…

Dealing with “Zero Income” Households

November 18, 2018

While “zero income” households are rare on Low-Income Housing Tax Credit properties (since there is no rental assistance, income is required in order to pay the rent), such households are not uncommon on Section 8 properties or developments with Rural…

Environmental Issues Relating to Fair Housing

November 10, 2018

As we all know, the environment in which we live can impact our health and well-being. Bad water and bad air are known causes of health problems. What often goes unnoticed however is the environment within buildings – including homes.…

LIHTC Lease – Important Elements

November 3, 2018

Important Elements of Low-Income Housing Tax Credit Leases With the exception of having at least a six-month initial term when a household moves into a Low-Income Housing Tax Credit (LIHTC) property, the IRS has no specific requirements regarding leases.…

Difference Between SSI and SSD

September 23, 2018

I recently received an email from a client who indicated that their corporate Section 8 department refused to accept a verification of Supplemental Security Income (SSI) for a person under age 65 as a verification of disability. The Section 8…

Premises Liability – When Property Owners are at Risk

August 25, 2018

One of the least understood risks that owners of multifamily properties face is the risk related to someone being injured due to a violent crime at their property. This short article is intended to provide a general overview of “premises…

Update on State Positions Regarding Income Averaging

August 13, 2018

State Housing Finance Agencies (HFAs) continue to release information regarding how they will approach the new minimum set-aside election – the “Average Income” election. As of August 1, 2018, 20 HFAs have provided some guidance on how the new election…

HUD Publishes Notice on Implementation of Public Housing Income Limit

August 4, 2018

The Department of Housing & Urban Development (HUD) published a notice in the July 26, 2018 Federal Register implementing a statutory requirement from the Housing Opportunity Through Modernization Act of 2016 (HOTMA) that places a limit on the income of…

ADA Service Animal Guidance May be Instructive for Housing Providers

July 29, 2018

The Americans with Disabilities Act (ADA) requires that state and local government agencies and non-profits that provide goods or services to the public make “reasonable modifications” in policies, practices, or procedures when needed to accommodate persons with disabilities. This requirement…

Website Accessibility

July 20, 2018

In recent years, there has been a spate of litigation relating to website accessibility under the Americans with Disabilities Act (ADA). The ADA provides that no person shall be discriminated against in the full and equal enjoyment of the goods,…

States Begin Issuing Average Income Set-Aside Guidance

July 5, 2018

A number of states have now begun to issue guidance regarding the implementation of the “Average-Income” minimum set-aside test, which was signed into law as part of the Consolidated Appropriations Act of 2018. Eight states have provided formal guidance. Alaska…

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…

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-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,…

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…

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…

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…

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…

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…

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