A. J. Johnson Consulting Services, Inc.

Rural Housing

Executive Order Establishes English as Official U.S. Language: Impact on HUD Programs

March 3, 2025

President Donald Trump signed an Executive Order on March 1, 2025, establishing English as the official language of the United States. This move has significant implications for federal agencies and their communication policies, especially for the Department of Housing and…

Understanding Medicare Advantage Flex Card Benefits in HUD Housing Income Determinations

February 16, 2025

In January 2025, the U.S. Department of Housing and Urban Development (HUD) clarified how Medicare Advantage (MA) supplemental benefits, particularly those administered through Flex Cards, should be treated when calculating income for HUD-assisted housing residents. This guidance helps housing providers…

USDA Updates Audit Requirements for Rural Housing and Community Facilities Programs

January 4, 2025

On December 6, 2024, the U.S. Department of Agriculture’s Rural Housing Service (RHS) issued a final rule updating audit and financial statement requirements for its Multi-Family Housing and Community Facilities programs. These changes align the agency’s regulations with recent revisions…

Rural Development Updates Form 3560-8, Tenant Income Certification

December 21, 2024

On December 10, 2024, the Rural Housing Service (RHS) Office of Multifamily Housing (MFH) announced an updated Form RD 3560-8 Tenant Certification for the July 1, 2025, implementation of the changes to income and asset calculations due to the Housing Opportunity…

USDA Rural Development Announces Passbook Savings Rate Change for Multifamily Housing

November 22, 2024

USDA Rural Development has announced a change in the Multifamily Housing Passbook Savings Rate. Effective January 1, 2025, the rate will be adjusted to 0.45%. What This Means for You This change will impact how asset income is calculated for…

USDA Proposes Mandatory Deed Recording Requirements for Section 538 Rural Rental Housing Program

November 8, 2024

The Rural Housing Service (RHS) of the U.S. Department of Agriculture has proposed a new rule requiring separate deed restrictions to be recorded for properties financed under the Guaranteed Rural Rental Housing Program (GRRHP). This proposed change aims to ensure…

Rural Development Issues Emergency Call System Guidance

October 11, 2024

The Rural Housing Service (RHS) has issued an Unnumbered Letter providing guidance to Multifamily Housing (MFH) staff and program participants regarding emergency call systems, also referred to as “pullcords” in MFH units. Installing and using emergency call systems in MFH…

2025 Social Security COLA Announced

October 10, 2024

The federal government announced on October 10, 2024, that the Social Security Cost of Living Adjustment (COLA) for 2025 will be 2.5%, slightly lower than the 3.2% increase for 2024. This increase will provide an additional $50 per month for…

Rural Development Service Announces Change to HOTMA Implementation Date

October 5, 2024

On October 3, 2024, the Rural Housing Service (RHS) announced a change in the Housing Opportunity Through Modernization Act (HOTMA) implementation date. On September 20, 2024, the Department of Housing and Urban Development (HUD) announced that the compliance date for…

Rural Development Provides Comprehensive Information Regarding HOTMA Implementation

September 6, 2024

On September 4, 2024, the Rural Housing Service (RHS) Office of Multifamily Housing (MFH) published an Unnumbered Letter (UL) notifying MFH staff of the anticipated timeline for implementing the requirements of the Housing Opportunity Through Modernization Act (HOTMA). The HOTMA…

Rural Development Provides Timeline for HOTMA Implementation

September 4, 2024

On September 4, 2024, the Rural Housing Service (RHS) Office of Multifamily Housing (MFH) published an Unnumbered Letter (UL) notifying MFH staff of the anticipated timeline for implementing the requirements of the Housing Opportunity Through Modernization Act (HOTMA). The HOTMA…

Rural Development Implements Administration’s Tenant Rights Protections

August 31, 2024

The Rural Housing Service has finalized several protections mandated by the Biden Administration. A final rule has been published in the Federal Register (Volume 89, No. 58, March 25, 2024) requiring landlords of Rural Housing assisted properties to issue a…

Rural Development Releases 2024 Income Limits

July 15, 2024

The Rural Development Service of the United States Department of Agriculture has released the 2024 income limits for the Rural Development Multifamily Housing (Section 515) program. The limits were effective July 12, 2024, and may be found at RD-MFHLimitMap.

The Rural Development Service Announces HOTMA Implementation

April 21, 2024

A memorandum from Joaquin Altoro, the Administrator of the Rural Housing Service (RHS), addressed to Multifamily Housing Owners and Management Agents Multifamily Housing Partners, has explained how HOTMA will be implemented by the Rural Housing Service (RHS). All housing programs…

HUD Expands List of Federally Mandated Income Exclusions

March 24, 2024

On January 31, 2024, the Department of Housing and Urban Development (HUD) published an updated list of income excluded for HUD-assisted housing programs. Since the Low-Income Housing Tax Credit Program (LIHTC) must follow HUD rules regarding income determination, these exclusions…

Verification of Value and Determination of Income from Real Estate Investments

January 21, 2024

Virtually all affordable housing programs, including those using assistance from the Department of Housing & Urban Development (HUD) and the Rural Housing Service (RHS), as well as Low-Income Housing Tax Credit (LIHTC) projects, must determine actual or potential income from…

HOTMA Adds New Income Exclusions

October 22, 2023

HOTMA Adds New Income Exclusions for Affordable Housing Projects Introduction In February 2023, the U.S. Department of Housing and Urban Development (HUD) published the Final Rule implementing the Housing Opportunity Through Modernization Act (HOTMA). Subsequently, on September 29, 2023, HUD…

Rural Development Income Limits Released

July 17, 2023

The Rural Development Service of the United States Department of Agriculture has released the 2023 income limits for the Rural Development Multifamily Housing (Section 515) program. The limits were effective on July 13, 2023, and may be found at RD-MFHLimitMap.

Rural Development to Implement Model Lease for Section 515 Program

March 5, 2023

The Biden Administration has instructed the U.S. Department of Agriculture to institute a broad set of actions with regard to leases in the Rural Development (RD) Section 515 program. Specifically, RD is developing a “model” lease for the Section 515…

New Age Requirement for Required Minimum Distributions

January 13, 2023

Affordable housing managers know that regular distributions from retirement accounts are considered income, and when the distributions begin, the accounts are no longer considered assets. For this reason, knowing when a person is required to begin taking minimum distributions is…

Rural Development Suspends Interim Recertification Requirements for COLA Recipients

November 28, 2022

On November 10, 2022, the Rural Development Service released an Unnumbered Letter granting a temporary exception to tenant recertification requirements. On October 13, 2022, the Social Security Administration announced there will be an 8.7% increase in Social Security and Supplemental…

Medical Expense Deduction – Still Confusing for Affordable Housing Managers

November 26, 2022

There are five possible deductions that owners of federally subsidized properties (e.g., Section 8 and Rural Development (RD) Rental Assistance) may subtract from annual income based on allowable family expenses and family characteristics. The remaining income, after these deductions are…

HUD Confirms That Child Tax Credit and Earned Income Tax Credit Are Not Income

March 5, 2022

New resources and information about the Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) on now available on the HUD Exchange (www.hudexchange.info). The 2021 American Rescue Plan (ARP) temporarily increased the CTC from $2,000 per child to $3,000…

HUD Enters Into Conciliation Agreement Relating to Language Access Services

May 23, 2021

The Department of Housing & Urban Development (HUD) recently entered into a Conciliation/Voluntary Compliance Agreement with an owner and management company in Sacramento, CA resolving allegations that they violated the Fair Housing Act (FHA) and Title VI of the Civil…

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…

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…

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…

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.…

Rural Housing Service Final Rule on Financial Reporting Requirements

October 29, 2017

On October 25, 2017, the Rural Housing Service (RHS) published a Final Rule in the Federal Register, “Multi-Family Housing Program Requirements to Reduce Financial Reporting Requirements.” This rule is effective on November 24, 2017. The purpose of this rule…

Notice of Solicitation for Multifamily Preservation and Revitilization (MPR) Demonstration Program for Section 514, 515, and 516 Rural Properties

September 9, 2017

On September 5, 2017, the Rural Housing Service published a Notice of Solicitation for Multifamily Preservation and Revitalization (MPR) Demonstration Program for Section 514, 515, and 516 Rural Properties in the Federal Register. This notice announces the timeframes to…

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