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HUD ANNOUNCES FUNDS FOR HOPE VI, CHOICE NEIGHBORHOODS PILOT

WASHINGTON, D.C. - August 26, 2010

The U.S. Department of Housing and Urban Development (HUD) yesterday announced the availability of $124 million in HOPE IV awards and $65 million in Choice Neighborhoods pilot grants. The Choice Neighborhoods pilot program aims to link housing revitalization with education reform and early childhood education; HUD says the 20-year-old HOPE VI Revitalization program has shown success in transforming distressed public housing into mixed-use communities. Applications for both programs are available at www.grants.gov.

HUD PROPOSES FAIR MARKET RENTS FOR 2011 HOUSING CHOICE VOUCHER PROGRAM

WASHINGTON, D.C. - August 4, 2010

The U.S. Department of Housing and Urban Development (HUD) today released proposed fair market rents (FMRs) for the Housing Choice Voucher program and the Moderate Rehabilitation Single Room Occupancy program for fiscal year (FY) 2011. HUD used 2008 American Community Survey (ACS) data and recent Consumer Price Index (CPI) rent and utility indexes to update the FY 2010 numbers. HUD will accept public comment on the proposed FMRs, including comments about FMR levels for specific areas,  until September 4, 2010. Today’s notice includes the HUD’s procedures for the development of the FMRs, FMR methodology, small area FMR methodology and a list of the proposed FMRs.

 

HUD PROVIDES GUIDANCE FOR SUBSIDY LAYERING REVIEWS

WASHINGTON, D.C. - July 9, 2010

The U.S. Department of Housing and Urban Development (HUD) today provided administrative guidelines for implementing subsidy layering reviews in accordance with the requirements of the Housing and Economic Recovery Act of 2008 (HERA). Under HERA, when project-based voucher assistance is proposed for newly constructed and rehabilitated structures, subsidy layering reviews may be satisfied if the applicable state or local agency has conducted such a review. In a notice published today HUD set forth the guidelines that an agency must use in conducting subsidy layering reviews for newly constructed and rehabilitated structures combining other forms of government assistance, and Section 8 project-based  voucher assistance.

FHA INCREASES OVERSIGHT OF MULTIFAMILY LENDERS, UNDERWRITERS

WASHINGTON, D.C. - July 7, 2010

The U.S. Department of Housing and Urban Development (HUD) today announced a series of changes to the Federal Housing Administration’s (FHA) multifamily insurance programs to update underwriting policies, increase lender and underwriter quality, and align loan application, submission and approval standards. HUD says the policy changes announced today by Mortgage Letter 2010-21 will affect all multifamily rental programs and include: revised underwriting standards, enhanced verification of property financial performance, expanded borrower mortgage credit analysis, and pre-screening of proposals.

Tune in to the next Tax Credit Tuesday podcast to hear about what Mortgage Letter 2010-21 will mean for lenders and underwriters, as well as the other program changes that FHA announced it will pursue this year through additional mortgagee letters and the rulemaking process.

PROPOSED CRA CHANGE ENCOURAGES NEIGHBORHOOD STABILIZATION PROGRAM INVESTMENT

WASHINGTON, D.C. - June 17, 2010

The federal bank and thrift regulatory agencies today announced a proposed change to the Community Reinvestment Act (CRA) regulations to encourage depository institutions to provide services and make loans and investments to support the U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program (NSP). The proposal would supplement existing CRA consideration for community development activities, including neighborhood stabilization activities. NSP-eligible activities would receive favorable consideration under the new rule only if conducted within two years after the date when NSP program funds are required to be spent. The agencies believe that the regulatory change would create an opportunity to leverage government funding targeted to areas with high foreclosure and vacancy rates and also serves the purposes of the CRA. The proposed rule will be published in the Federal Register. The agencies will accept comments until 30 days after the notice is published.

SUMMARY, COST ESTIMATES POSTED FOR SENATE EXTENDER AMENDMENT

WASHINGTON, D.C. - June 9, 2010

The Senate Finance Committee has released additional documents related to Senate Amendment 4301, a substitute for H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010. Provisions included in H.R. 4213, also known as the tax extenders bill, would extend for one year the Section 1602 low-income housing tax credit (LIHTC) cash grant exchange program, extend for one year the New Markets Tax Credit (NMTC) program, and allow the NMTC to offset the alternative minimum tax with respect to qualified investments made between March 15, 2010 and January 1, 2012. The bill would also fund the National Housing Trust Fund (NHTF) and extend by two years the placed-in-service date for Gulf Opportunity (GO) Zone LIHTCs.

The documents released yesterday include a summary of the amendment, a summary of changes made by the amendment, and estimates from the Congressional Budget Office (CBO) budget and Joint Committee on Taxation (JCT) of the budget effects of the amendment. The Senate resumed consideration of the bill today.

To hear more about the status of H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010, download this week’s Tax Credit Tuesday podcast.

NOVOGRADAC'S RENT & INCOME CALCULATOR UPDATED FOR 2010

WASHINGTON, D.C. - June 1, 2010

Novogradac & Company LLP's Rent & Income Limit Calculator© has been updated to include the U.S. Department of Housing and Urban Development's (HUD) 2010 rent and income limit data. It is available online at www.novoco.com/products/rentincome.php with the compliments of Novogradac & Company LLP.

The Rent & Income Limit Calculator© will calculate IRC Section 42(i)(3)(A) low-income housing tax credit (LIHTC) rent and income limits for every county and for every metropolitan statistical area (MSA) in the United States.

To learn what the 2010 rent and income limits mean for your property, download a recording of Novogradac & Company's webinar: Income Limits and Your Project.

If you would like to engage Novogradac & Company LLP to calculate the rent and income limits for your property, please contact Jim Kroger at jim.kroger@novoco.com.

HUD RELEASES INCOME LIMITS FOR 2010

WASHINGTON, D.C. - May 14, 2010

The U.S. Department of Housing and Urban Development (HUD) today released income limits for 2010. Click here for links to the 2010 income limits and accompanying information and tables. Under the Housing and Economic Recovery Act of 2008 (Public Law 110-289), income limits used to determine qualification levels as well as set maximum rental rates for projects funded with low-income housing tax credits (LIHTC) and projects financed with tax-exempt housing bonds - referred to by HUD as Multifamily Tax Subsidy Projects (MTSPs) - are now calculated and presented separately from the Section 8 income limits.

Novogradac & Company LLP is currently updating its Rent & Income Limit Calculator© to include 2010 data. Subscribers to the free Industry Alert E-mail service will receive an e-mail announcement when the update has been completed.

In the meantime, for questions about using the new 2010 income limits please call Jim Kroger, CPA, at (415) 356-8000 or click here to learn more about Novogradac & Company’s property compliance services.

To hear this news discussed in detail, tune in to the Tax Credit Tuesday podcast on May 18.

To learn what the 2010 rent and income limits mean for your property, tune in to Novogradac & Company's webinar: Income Limits and Your Project. Stay tuned to www.novoco.com/events for details about this webinar.

HUD TO END HOLD-HARMLESS POLICY FOR SECTION 8 INCOME LIMITS

WASHINGTON, D.C. - May 12, 2010

The U.S. Department of Housing and Urban Development (HUD) will eliminate the hold-harmless policy in estimating Section 8 income limits, according to a pre-publication copy of a notice posted online today. The notice says this change will allow Section 8 income limits to decrease beginning with the fiscal year (FY) 2010 income limits, but HUD will limit all annual decreases to no more than 5 percent and limit all annual increases to 5 percent or twice the change in national median family income, whichever is greater. The notice, which still must be published officially in the Federal Register, follows notices of September 14, 2009, and October 7, 2009, that solicited public comment on HUD’s proposal to discontinue its hold-harmless policy. In the new notice, HUD discusses the comments received about the proposed policy change, including questions regarding how this policy change will impact multifamily tax subsidy projects (MTSPs) financed with low-income housing tax credits (LIHTCs). HUD also announced that rents used in its HOME Investment Partnerships program (HOME) will continue to be held harmless and that income limits for rural housing programs will continue their current hold-harmless policy, based on different area definitions.

HUD TO SURVEY LOW-INCOME HOUSING TAX CREDIT PROPERTY OWNERS

WASHINGTON, D.C. - May 11, 2010

The U.S. Department of Housing and Urban Development (HUD) today invited public comments on a proposed “Study of the Low-Income Housing Tax Credit (LIHTC) Program After 15 Years.” HUD’s Office of Policy Development and Research (PD&R) has commissioned this study to learn what happened to LIHTC properties after the first 15 years, when the original use restrictions for properties that received tax credit allocations before 1990 expired, and when some tax credit properties funded after that date also were able to leave the program. In a notice published in today’s Federal Register, HUD says a survey of LIHTC property owners is planned for the fall 2010. That survey will collect data on LIHTC property owners' experience with the program and gather information that factored into property disposition decisions. Data will also be collected on whether projects were sold and whether projects continued as affordable rental housing. Comments on the proposed survey will be accepted through July 12, 2010.

HUD SEEKS COMMENTS ON OUTCOME EVALUATION OF DISASTER HOUSING PROGRAM

WASHINGTON, D.C. - May 6, 2010

The U.S. Department of Housing and Urban Development (HUD) today invited public comments about its Disaster Housing Assistance Program Incremental Rent Transition Study. To assist households displaced by Hurricane Katrina in 2005, the Disaster Housing Assistance Program (DHAP) was implemented to provide rental assistance and case management services to eligible displaced families. HUD is conducting an outcome evaluation of the program entitled the DHAP Incremental Rent Transition (IRT) Study. HUD says this study represents an important opportunity to learn about rent-setting strategies and case management services in a post-disaster housing program. The results of this study will feed into decisions about how HUD should operate such programs after future disasters. Click here for more information about the study and how to submit comments.

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