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Executive Order May be a Threat to the Rural Development Service

April 28, 2017

On March 13, 2017, the President signed Executive Order 13781. This order instructs the Director of the Office of Management and Budget (OMB) to propose a plan to reorganize government functions and eliminate unnecessary agencies, components of agencies, and agency…

HUD Final Rule on VAWA – November 16, 2016

November 21, 2016

The U.S. Department of Housing & Urban Development (HUD) final rule regarding the implementation of housing protections authorized in the Violence Against Women Reauthorization Act of 2013 (VAWA) was published in the Federal Register on November 16, 2016. In…

HUD Proposed Rule – Lead Based Paint Hazards

September 24, 2016

HUD published a proposed rule in the September 1, 2016 Federal Register titled “Requirements for Notification, Evaluation, & Reduction of Lead-Based Paint Hazards in Federally Owned Residential Property & Housing Receiving Federal Assistance; Response to Elevated Blood Levels.” The…

Rural Development Voucher Program

July 6, 2016

The Rural Housing Service (RHS) published a notice in the Federal Register on June 29, 2016, titled “Rural Development Voucher Program.” The purpose of the notice was to inform the public of the general policies and procedures for the Rural…

HUD Publishes 2016 Income Limits

March 28, 2016

On March 28, 2016, HUD published the 2016 income limits for HUD programs as well as for the Low-Income Housing Tax Credit and Tax-Exempt Bond programs. The limits for the LIHTC and Bond projects are published separately from the limits…

2016 HUD Imputed Interest Rate

January 19, 2016

HUD published Notice 2016-01 on January 19, 2016, announcing that the passbook savings rate effective February 1, 2016, will remain at .06%. The notice applies to all Project-Based Section 8 programs, Section 101 Rent Supplement Program, Section 202 Programs, Section…

Rent to Own vs. Seller Financing

January 15, 2016

The Difference Between “Seller Financing” and “Rent-to-Own” Chapter Five of HUD Handbook 4350.3, Chg. 4 outlines various requirements relative to the determination of value and income for assets. One of the more unusual assets managers of affordable housing developments…

No Increase in 2016 Social Security Rates

October 15, 2015

The federal government announced today that the Social Security Cost of Living Adjustment (COLA) for 2016 will be zero. This means that there will be no change in the Social Security income of SS recipients for the upcoming year. Owners…

Proposed Rural Housing Service Rule will Reduce Financial Reporting Requirements

August 14, 2015

On August 6, 2015, the Rural Housing Service (RHS) published a proposed rule in the Federal Register that will amend current regulations to change program requirements regarding financial reporting. The proposed change will align RHS requirements with those of the…

Rural Housing Service Accepting Applications for Multifamily Preservation and Revitilization (MPR)

August 3, 2015

On August 3, 2015, the Rural Housing Service published a Notice in the Federal Register announcing the timeframe to submit applications to participate in a demonstration program to preserve and revitalize existing Rural Rental Housing (RRH) projects under Section 514,…

Revision to RD Section 538 Guaranteed Loan Program Replacement Reserve Requirements

June 18, 2015

The Rural Housing Service published a Notice in the Federal Register on June 18, 2015, amending its regulation to change the requirements of the reserve account for direct Multifamily Housing (MFH) loans. The purpose of the Notice is to address…

RHS and HUD Merger Potential

May 29, 2015

During a recent hearing before a House Financial Services panel, a representative of the Federal Housing Administration (FHA) and Housing & Insurance Subcommittee Chair Blaine Luetkemeyer (R-MO) argued that the Rural Housing Service (RHS) should be moved from the Department…

Verification of Social Security and Supplemental Security (SSI) Payments

April 11, 2015

Verification of Social Security and Supplemental Security Income (SSI) Payments Managers of affordable housing properties (e.g., Section 8, LIHTC, Section 515, etc.) often struggle with the verification of income from Social Security (SS) or SSI. While verification of such…

HUD to Publish Proposed VAWA Regulation

March 30, 2015

HUD Secretary Julian Castro announced on March 25, 2015 that HUD’s proposed regulation implementing the Violence Against Women Act of 2013 (VAWA 2013) will shortly be published in the Federal Register. The rule will implement the VAWA 2013, which expands…

Understanding Military Income and Allowances

March 28, 2015

I get many questions from managers regarding how to deal with and verify income for members of the military. Understanding the military pay system is confusing even for those in the military; it can be impossible for persons not familiar…

2015 Income Limits

March 7, 2015

On March 6, 2015, HUD published the 2014 income limits for HUD programs as well as for the Low-Income Housing Tax Credit and Tax-Exempt Bond programs. The limits for the LIHTC and Bond projects are published separately from the limits…

HUD Proposed Regulation Regarding MOR Reviews and Vacancy Payments, January 14, 2015

January 14, 2015

HUD issued a proposed rule on January 14, 2015 titled “Streamlining Management & Occupancy Reviews for Section 8 Housing Assistance Programs and Amending Vacancy Payments for Section 8 and Section 162 Housing Assistance Programs.” This proposed regulation would amend existing…

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

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…

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…

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…

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…

Social Security Administration Changes Rules Regarding Proof of Income Letters

February 28, 2014

On February 4, 2014, the Social Security Administration (SSA) announced that effective October 1, 2014, SSA field offices will no longer offer benefit verification letters. Budget cuts are responsible for this cutback. Households needing verification of SS benefits should now…

Farm Bill Protects Rural Area Designation

February 5, 2014

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…

Rural Area Definition – Legislative Update (June 28, 2013)

June 29, 2013

Approximately 900 communities across the United States that are currently considered “rural” for purposes of United Stated Department of Agriculture (USDA) programs are in danger of losing their rural designation. The communities will no longer be considered rural based on…

Importance of Updating the Affirmative Fair Housing Marketing Plan

May 13, 2013

While all federally assisted housing properties are required to update their Affirmative Fair Housing Marketing Plans (AFHMP) at least every five years, HUD requires that the Plan actually reflect the marketing realities of your community. For this reason, it is…

A Primer on Pre-Paid Debit Cards

April 6, 2013

Federal and State governments are rapidly moving away from cash and paper checks and going to the use of pre-paid cards. Such cards enable consumers without bank accounts to benefit from the shift to electronic transactions from cash and to…

Handling Income from Investment Accounts

March 18, 2013

As most operators of housing under HUD, Rural Development, and the Low-Income Housing Tax Credit Programs know, there is a considerable difference of opinion in our industry regarding the handling of investment accounts from which regular distributions are taken. This…

Violence Against Women Act Ready for President’s Signature

March 4, 2013

On February 28, 2013, the Violence Against Women Act (VAWA) passed the House of Representatives after already having been approved by the Senate. The bill now goes to President Obama for his signature, which is certain. Title VI, Section…

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