News Archive:
2011
June
HUD REVISES INCOME LIMITS FOR SELECTED AREAS
WASHINGTON, D.C. - June 30, 2011
The U.S. Department of Housing and Urban Development (HUD) today released revised fiscal year (FY) 2011 income limits for certain areas. The affected areas are located in California, Colorado, Florida, Massachusetts, New York and Puerto Rico.
Tune in to the July 5 Tax Credit Tuesday podcast to hear Michael J. Novogradac, CPA, give a detailed analysis of the income limit revisions and what they mean for your property.
HUD STUDY FINDS $26 BILLION NEEDED FOR PUBLIC HOUSING REPAIRS
WASHINGTON, D.C. - June 27, 2011
As much as $25.6 billion could be required to address the capital needs of the nation’s 1.2 million public housing units, according to a study released last week by the U.S. Department of Housing and Urban Development (HUD). The study, “Capital Needs in the Public Housing Program,” is an update of a 1998 analysis that addresses the costs of accessibility improvements, water and energy conservation, and overdue repairs that would improve basic living conditions at public housing properties. HUD said the study includes the first extensive look at the estimated cost of energy and water conservation projects. HUD programs such as Choice Neighborhoods Initiative and the Rental Assistance Demonstration were introduced to address the capital needs backlog, which is growing by $3.4 billion each year, the agency said.
HUD RELEASES CHOICE NEIGHBORHOOD INITIATIVE FUNDS
WASHINGTON, D.C. - June 8, 2011
The U.S. Department of Housing and Urban Development (HUD) announced today that it is making approximately $3.6 million in assistance available through the fiscal year 2011 Choice Neighborhoods Initiative. The $3.6 million will be awarded as planning grants. Planning grants will assist communities in developing a neighborhood transformation plan and building support to implement the plan.
HUD CORRECTS NEW YORK METRO AREA INCOME LIMITS
WASHINGTON, D.C. - June 1, 2011
The U.S. Department of Housing and Urban Development (HUD) today issued corrected fiscal year (FY) 2011 income limit values for the New York, N.Y. HUD Metro Fair Market Rent Area. Following yesterday’s publication of FY 2011 income limits for areas nationwide, the agency said it identified an inconsistency in the values for the New York metro area, which includes Bronx County, Kings County, New York County, Putnam County, Queens County and Richmond County. HUD said it has updated all information contained on its web site to reflect the correct values.
If you have questions about the new 2011 income limits, please e-mail Jim Kroger, CPA, at jim.kroger@novoco.com or click here to learn more about Novogradac & Company's property compliance services.
HUD UNVEILS GREEN REFINANCING PROGRAM
WASHINGTON, D.C. - June 1, 2011
The U.S. Department of Housing and Urban Development (HUD) yesterday announced Green Refinance Plus, a program that allows owners of existing affordable rental properties to refinance their mortgages and generate proceeds for energy-efficiency upgrades and other needed renovations. Under the program, the Federal Housing Administration (FHA) and Fannie Mae will share the risk on loans to refinance the expiring mortgages of low-income housing tax credit and other affordable projects and allow owners to borrow additional funds to make energy-saving improvements. HUD said Fannie Mae and its participating lenders will begin accepting applications for refinancing under the program this month.
May
HUD RELEASES INCOME LIMITS FOR 2011
WASHINGTON, D.C. - May 31, 2011
The U.S. Department of Housing and Urban Development (HUD) today released income limits for 2011. Click here for links to the 2011 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 2011 data. Subscribers to Novogradac & Company’s free Industry Alert E-mail service will receive an e-mail announcement when the update has been completed.
To learn what the 2011 rent and income limits mean for your property, tune in to Novogradac & Company's upcoming webinar. Stay tuned to www.novoco.com/events for details about this event.
In the meantime, for questions about the new 2011 income limits please email Jim Kroger, CPA, at jim.kroger@novoco.com or click here to learn more about Novogradac & Company’s property compliance services.
HUD RELEASES FINAL BLOCK GRANT ALLOCATIONS FOR FISCAL YEAR 2011
WASHINGTON, D.C. - May 31, 2011
The U.S. Department of Housing and Urban Development last week announced the final fiscal year 2011 block grant allocations to approximately 1,200 state and local governments under the Community Development Block Grants (CDBG), HOME Investment Partnerships (HOME), Housing Opportunities for Persons with AIDS (HOPWA),and the Emergency Shelter Grant (ESG) Program. HUD also announced that it is instituting several program priorities in the upcoming year; these include enhancing its consolidated planning process; implementing the Office of Community Planning and Development’s unified OneCPD technical assistance process; and urging grantees to consider the needs of returning veterans and their families in the design and administration of these block grant programs.
WASHINGTON, D.C. - May 24, 2011
The U.S. Department of Housing and Urban Development (HUD) yesterday awarded nearly $153 million in HOPE VI Revitalization Program grants to eight public housing authorities (PHAs). HUD said the funds, which will come from HOPE VI fiscal year (FY) 2010 and FY 2011 appropriations, will help the cities transform severely distressed federally-subsidized housing developments into mixed-income communities. The agency selected the grantees from among 36 PHAs that applied for HOPE VI funding.
HUD SOLICITS COMMENTS ON NATIVE HOUSING NEEDS ASSESSMENT
WASHINGTON, D.C. - May 6, 2011
The U.S. Department of Housing and Urban Development (HUD) yesterday invited public comments on a proposed assessment of Native American, Alaska Native and Native Hawaiian housing needs. HUD said this congressionally-mandated study will produce national level estimates of housing needs in tribal areas in the United States. The agency has not published a study on this population’s housing needs since 1996. Comments on the proposed data collection will be accepted through July 5.
HUD RELEASES CLOSING DOCUMENTS AND REGULATORY REVISIONS
WASHINGTON, D.C. - May 2, 2011
The U.S. Department of Housing and Urban Development (HUD) today released the final closing documents and issued the final regulatory revisions for multifamily rental properties. The updated closing documents and final regulatory rule will not be mandatory until September 1, 2011. Changes to the documents and revisions will be discussed during the May 10 Tax Credit Tuesday podcast. In the meantime, questions about the documents can be directed to Susan Wilson at 512-340-0420 or susan.wilson@novoco.com
April
RENTAL HOUSING REPORT FINDS RECORD-HIGH UNAFFORDABILITY
CAMBRIDGE, Mass. - April 26, 2011
A record number of renters are paying more than half their income for housing, according to a report released today by the Harvard Joint Center for Housing Studies (JCHS). “America’s Rental Housing: Meeting Challenges, Building on Opportunities” found that one in four renters, or 10.1 million households, spend more than half their income on rent and utilities. JCHS attributed the record-high levels to the recession, which worsened budgets already strained by rising utility costs and declining incomes. The report also determined that while affordable housing demand is stronger than ever, the supply is shrinking. JCHS said that rental housing policy, in addition to alleviating renters’ economic burden, may help address poverty and communities hit hard by the foreclosure crisis.
HUD REQUESTS COMMENT ON RENTAL HOUSING FINANCE SURVEY
WASHINGTON, D.C. - April 21, 2011
The U.S. Department of Housing and Urban Development (HUD) today issued a request for comment on information that it proposes to collect through its 2012 Rental Housing Finance Survey (RHFS). The notice says that the 2012 questions are similar to the 1995 Property Owners and Managers Survey and the rental housing portion of the 2001 Residential Finance Survey. HUD says the estimates derived from the RHFS sample will help public and private stakeholders better understand the financing, operating costs and property characteristics of multifamily rental housing stock. Comments can be submitted until May 23, 2011.
HUD REQUESTS PARTICIPATION IN SMALL AREA FMR PROJECT
WASHINGTON, D.C. - April 20, 2011
The U.S. Department of Housing and Urban Development (HUD) today called for public housing agencies (PHAs) in metropolitan areas to participate in its Small Area Fair Market Rent (FMR) demonstration project. Today’s notice also contains public comments HUD received in response to its announcement to establish the demonstration project. The project is meant to provide Section 8 voucher tenants the ability to move to areas of greater opportunity and reduce undue subsidy in lower-rent areas. Metropolitan PHAs that wish to participate in the demonstration must apply to HUD by June 6.
HUD PUBLISHES OPERATING PLAN IN CASE OF GOVERNMENT SHUTDOWN
WASHINGTON, D.C. - April 8, 2011
The U.S. Department of Housing and Urban Development (HUD) today released its Contingency Plan for Possible Lapse in Appropriations to be followed in the event that Congress is unable to reach agreement on a final budget, or another continuing resolution, for fiscal year 2011 funding, resulting in a government shutdown at midnight. According to the plan, HUD would continue to disburse Recovery Act, Community Development Block Grants, HOME and Neighborhood Stabilization Program funds in cases where failure to do so would pose a threat to life or personal property. Multifamily developments that are scheduled to close or meet critical deadlines under FHA, Section 202 or 811 during the shutdown period would not be affected. HUD would also continue to fund and renew original term Section 8 contracts where there is budget authority available from prior appropriations.
March
HUD GRANTS 30-DAY BLANKET REAC EXTENSION
WASHINGTON, D.C. - March 31, 2011
The U.S. Department of Housing and Urban Development (HUD) yesterday announced that the Office of Asset Management approved a blanket 30-day extension for Financial Assessment Subsystem (FASS) submissions of audited financial statements in the Real Estate Assessment Center (REAC) for multifamily housing property owners with a fiscal year ending December 31, 2010. HUD also announced that the system will be shut down for maintenance at 8 p.m. (EDT) on Friday, April 29, 2011; it is widely believed that submissions entered after the system reopens on May 2 will be deemed late.
For questions about this REAC deadline extension, please call Susan Wilson, CPA, at (512) 340-0420 x115 or email her at susan.wilson@novoco.com.
HUD REQUESTS COMMENTS ON MIXED-FINANCE PROGRAM FORMS
WASHINGTON, D.C. - March 30, 2011
The U.S. Department of Housing and Urban Development (HUD) today announced that it will accept public comment on a form and agreements that pertain to the financial closing of a Mixed-Finance housing development’s rehabilitation or development. One of the forms that HUD is requesting comment on is form number HUD-50030. The document describes the ownership of, type, size and number of, construction period and permanent financing of, the restrictions on the usage of, and HUD and federal government rights to, the public, affordable and market rate rental housing units that are being developed or rehabilitated. HUD will accept comments on the proposal “Public/Private Partnerships for the Mixed-Finance Development of Public Housing Units” until April 29, 2011.
INDUSTRY GROUPS ASK SENATE TO INCREASE SECTION 8 FUNDING LEVELS
WASHINGTON, D.C. - March 28, 2011
Ten rental housing industry organizations sent a letter earlier this month encouraging the Senate to appropriate adequate funding to ensure that residents living in project-based Section 8 and Section 521 communities are not displaced. In the letter and corresponding factsheet the groups write that current funding proposals for fiscal year 2011 under H.R. 1 are not sufficient to honor the government’s existing contractual obligations under these programs. The groups warn that underfunding these programs will have a negative impact on residents and affordable rental housing stock.
HUD INVITES COMMENTS ON CHOICE NEIGHBORHOODS INITIATIVE
WASHINGTON, D.C. - March 23, 2011
The U.S. Department of Housing and Urban Development (HUD) today invited public comments on a proposed information collection for the Choice Neighborhoods Initiative, a program that aims to revitalize severely distressed assisted housing and improve access to public services. HUD may use as much as $65 million of the HOPE VI program’s appropriations to award Choice Neighborhoods grants to communities. Comments regarding the proposal are due by May 23.
HUD RELEASES 2011 ANNUAL ADJUSTMENT FACTORS
WASHINGTON, D.C. - March 17, 2011
The U.S. Department of Housing and Urban Development (HUD) yesterday published fiscal year 2011 Contract Rent Annual Adjustment Factors (AAFs) in the Federal Register and on the agency's web site. Owners participating in Section 8 housing assistance payment programs, including New Construction, Substantial Rehabilitation and Moderate Rehabilitation programs; Loan Management and Property Disposition programs; and the Project-Based Certificate program are required to provide annual adjustment to monthly rentals for units under the contract. AAFs are used to adjust rents for units during the initial term of the housing assistance program contract and for all units in the Project-Based Certificate program. The factors are based on a formula using residential rent and utility cost changes from the latest annual Bureau of Labor Statistics Consumer Price Index survey.
HUD REQUESTS COMMENTS ON FAIR MARKET RENT METHODOLOGY
WASHINGTON, D.C. - March 9, 2011
The U.S. Department of Housing and Urban Development (HUD) today requested comments about the manner in which it calculates the trend factor used in its fair market rent (FMR) estimates. FMRs are required to be ‘‘trended so the rentals will be current for the year to which they apply.’’ In the Federal Register notice, HUD proposes several alternative methods for calculating the trend factor and requests comments on the alternatives as well as other suggestions. HUD will accept public comments until April 8, 2011.
BILL TO CAPITALIZE NATIONAL HOUSING TRUST FUND INTRODUCED
WASHINGTON, D.C. - March 8, 2011
Sen. Jack Reed, D-R.I., introduced legislation last week that would contribute $1 billion to the National Housing Trust Fund for the creation, preservation and rehabilitation of affordable housing. S. 489, the Preserving Homes and Communities Act of 2011, would provide the funds through proceeds from the sale of warrants provided to the Treasury by banks in exchange for receiving Troubled Asset Relief Program funds. Sen. Reed says the bill would also protect consumers by increasing the transparency of the foreclosure process. S. 489 is based on similar legislation introduced in 2009 and was referred to the Committee on Banking, Housing and Urban Affairs.
February
HUD RELEASES 2011 BASIC STATUTORY MORTGAGE LIMITS
WASHINGTON, D.C. - February 24, 2011
The U.S. Department of Housing and Urban Development (HUD) today published a notice in the Federal Register adjusting the basic statutory mortgage limits for multifamily housing programs for calendar year 2011. The release includes the new mortgage limits for multifamily loans under the Section 207, Section 220, Section 221(d)(3), Section 221(d)(4) and Section 231 programs. Additional information about the limits can be found in the release.
ADMINISTRATION RELEASES HOUSING FINANCE REFORM PROPOSAL
WASHINGTON, D.C. - February 11, 2011
The Obama Administration today delivered a report to Congress proposing a plan to reform the housing finance market. The proposal would gradually reduce Fannie Mae and Freddie Mac’s role in the market and ultimately wind down both institutions, which the administration says would create the conditions for private capital to play the predominant role in housing finance. The report also stresses a commitment to affordable rental housing and calls for a dedicated funding source for affordability efforts. Additional information is available on the GSE Reform page.
Tune in to the February 15 Tax Credit Tuesday podcast to hear more about the plan and what it means for the affordable housing community. More information on the subject can also be found in this month’s Journal of Tax Credits.