News Archive:

2014

Novogradac archives Ad.
 
December

Senate Passes $1.1 Trillion Spending Bill for Fiscal Year 2015

WASHINGTON – Dec. 15, 2014

The U.S. Senate on Saturday passed the Fiscal Year 2015 Consolidated and Further Continuing Appropriations Act 2015, 56-40. This sends the $1.1 trillion spending bill to President Barack Obama, who is expected to sign it before the midnight Wednesday. The House of Representatives previously approved it by a 219-206 margin. The legislation funds most of government through Sept. 30, 2015.

The bill includes $35.6 billion for the U.S. Department of Housing and Urban Development (HUD), including $9.7 billion for Section 8 project-based rental assistance, $19.3 billion for tenant-based rental assistance, $900 million for the HOME Investment Partnerships program and $3 billion for the Community Development Block Grant (CDBG) program. The bill extends HUD's Rental Assistance Demonstration (RAD) program through 2018 and raises the cap on the number of public housing units that can participate in it from 60,000 to 185,000.

Tune in to the Dec. 16 Tax Credit Tuesday podcast to learn more.

FHFA Authorizes Funding for Housing Trust Fund, Capital Magnet Fund

WASHINGTON– Dec. 11, 2014

The Federal Housing Finance Agency (FHFA) today sent letters to Fannie Mae and Freddie Mac, directing them to begin setting aside and allocating funds to the National Housing Trust Fund (NHTF) and the Capital Magnet Fund (CMF). Contributions to the NHTF and CMF were suspended since 2008, when Fannie Mae and Freddie Mac, the intended funding sources under the Housing and Economic Recovery Act of 2008 (HERA), were placed into conservatorship. The FHFA released an interim final rule to implement a statutory prohibition against the government-sponsored enterprises passing the cost of allocations through to the originators of loans they purchase or securitize.

Tune into the Dec. 16 episode of the Tax Credit Tuesday podcast to learn more.

U.S. House and Senate Agree on FY 2015 Spending Bill

WASHINGTON– Dec. 10, 2014

The U.S. House and Senate last night reached an agreement on the Consolidated and Further Continuing Appropriations Act, 2015, commonly referred to as the “CR-Omnibus,” a $1 trillion-plus bill that would fund most of the government through Sept. 30, 2015. It takes effect after both houses pass it and President Barack Obama signs the legislation. The House is expected to vote on the bill Thursday and the Senate will likely vote on the House-passed bill soon thereafter. The House and Senate may pass a short-term continuing resolution to fund the government while the Senate considers and votes on the bill.

The bill provides the U.S. Department of Housing and Urban Development (HUD) $45.4 billion in gross discretionary budget authority for fiscal year (FY) 2015, including $9.7 billion for Section 8 project-based rental assistance, $19.3 billion for tenant-based rental assistance, $900 million for the HOME Investment Partnerships program and $3 billion for the Community Development Block Grant (CDBG) program. The bill extends HUD’s Rental Assistance Demonstration (RAD) program through 2018 and raises the cap on the number of public housing units that can participate in it from 60,000 to 185,000. It permanently extends the second component of RAD, which consolidates several legacy rental assistance programs into Section 8. The agreement also provides $231 million for the Community Development Financial Institutions (CDFI) Fund, $5 million more than the FY 2014 enacted level. Additional details can be found in the Senate Committee on Appropriations’ summary of the bill.

Tune into the Dec. 16 episode of the Tax Credit Tuesday podcast to learn more.

HUD Delays Income Limits Release

WASHINGTON– Dec. 3, 2014

The U.S. Department of Housing and Urban Development (HUD) today announced that the publication of its fiscal year (FY) 2015 income limits will be delayed and will occur following the publication of 2015 poverty guidelines issued by the Department of Health and Human Services (HHS). The income limits are used to determine income eligibility for HUD’s assisted housing programs, including public housing, Section 8, Section 202 and Section 811. Instead of being issued this week as originally expected, HUD anticipates that the FY 2015 income limits will be published in February 2015.

The delay is related to a change in the definition of an “extremely low-income” household, which is mainly used for setting admissions targets in the Housing Choice Voucher program.  The change was made by the 2014 Consolidated Appropriations Act and extremely low-income household is now defined as the greater of the Department of Health and Human Services (HHS) poverty guidelines or 30 percent of area median income (AMI).

Tune into the Dec. 9 episode of the Tax Credit Tuesday podcast to learn more.

October

HUD Invites Comments on Proposed Section 202, 811 Rule Changes

WASHINGTON– Oct. 6, 2014

The U.S. Department of Housing and Urban Development (HUD) is inviting comments on a proposed rule amending regulations governing its Section 202 and Section 811 programs. According to HUD, the proposed rule would streamline the Section 202 and Section 811 programs to better provide supportive housing for the elderly and persons with disabilities. Among other things, the proposed rule would implement a new form of rental assistance called Senior Preservation Rental Assistance Contracts (SPRACs) and allow a set-aside for a number of units for elderly individuals with functional limitations. Comments are due by Dec. 5.

HUD Releases Final 2015 FMRs

WASHINGTON– Oct. 2, 2014

In a notice in tomorrow’s Federal Register, the U.S. Department of Housing and Urban Development (HUD) will publish final fiscal year (FY) 2015 fair market rents (FMRs). The final FY 2015 FMRs took effect Oct. 1. HUD uses FMRs to determine payment standard amounts for the Housing Choice Voucher program, to determine initial renewal rents for some expiring project-based Section 8 contracts and to determine initial rents for housing assistance payments (HAP) contracts in the Moderate Rehabilitation Single Room Occupancy (SRO) program.

HUD Sets 2015 Operating Cost Adjustment Factors

WASHINGTON– Oct. 1, 2014

In tomorrow’s Federal Register, the U.S. Department of Housing and Urban Development (HUD) will publish a notice establishing the operating cost adjustment factors (OCAFs) for project-based assistance contracts for eligible multifamily housing projects that have an anniversary on or after Feb. 11, 2015. The factors are used to adjust Section 8 rents renewed under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997. OCAFs are calculated as the sum of weighted average cost changes for wages, employee benefits, property taxes, insurance, supplies and equipment, fuel oil, electricity, natural gas and water/sewer/trash. The 2015 OCAFs are effective Feb. 11, 2015.

September

HUD Issues Subsidy Layering Review Guidance

WASHINGTON– Sept. 25, 2014

In a notice in tomorrow’s Federal Register, the U.S. Department of Housing and Urban Development (HUD) will issue guidelines for conducting subsidy layering reviews for Section 8 project-based voucher housing assistance payment contracts and mixed-finance developments, including those with or without low-income housing tax credits (LIHTCs). Requirements in the notice do not supersede subsidy layering requirements of other federal programs.

Tune in to the Oct. 7 Tax Credit Tuesday podcast to learn more about what the guidelines mean for LIHTC developments.

August

HUD Issues FY 2015 Fair Market Rents Correction

WASHINGTON– Aug. 25, 2014

The U.S. Department of Housing and Urban Development (HUD) today issued a notice proposing the fiscal year (FY) 2015 fair market rents (FMRs) for the Housing Choice Voucher (HCV) and Moderate Rehabilitation Single Room Occupancy programs. FMRs are used to determine the following: payment standards for the HCV program, initial renewal rents for some expiring project-based Section 8 contracts and initial rents for housing assistance payment contracts in the Moderate Rehabilitation Single Room Occupancy program. They also serve as rent ceilings in the HOME program and in the calculation of maximum award amounts for Continuum of Care grantees. The proposed FMRs do not reflect updates to the methodology used to calculate FMRs.

HUD Announces Proposed FY 2015 Fair Market Rents

WASHINGTON– Aug. 15, 2014

The U.S. Department of Housing and Urban Development (HUD) today issued a correction to the proposed fair market rents (FMRs) for fiscal year (FY) 2015 for the Housing Choice Voucher program, Moderate Rehabilitation Single Room Occupancy program and other programs. HUD updated the Schedule B Addendum to include the FMRs for Dallas, Texas, which were missing from the notice published Aug. 15. No other corrections were made. The comment due date remains Sept. 15, 2014.

July

Legislation Would Extend RAD Program, Increase Unit Cap

WASHINGTON– July 31, 2014

Rep. Robin Kelly, D-Ill., this week introduced a bill that would extend the U.S. Department of Housing and Urban Development (HUD) rental assistance demonstration (RAD) program through 2016 and would increase the program cap from 60,000 units to 150,000 units. The Rental Assistance Housing Preservation and Rehabilitation Act of 2014 (H.R. 5222) has been referred to the House Committee on Financial Services.

Julian Castro Confirmed as HUD Secretary

WASHINGTON– July 9, 2014

The Senate today confirmed Julian Castro as Secretary of the U.S. Department of Housing and Urban Development. Castro was confirmed by a bipartisan vote of 71-26. He replaces outgoing secretary Shaun Donovan.

June

HUD Publishes Final Section 8 Rule

WASHINGTON– June 24, 2014

The U.S. Department of Housing and Urban Development (HUD) today released a final rule that makes regulatory changes to the Section 8 tenant-and project-based voucher programs. The final rule follows a May 15, 2012 proposed rule on which HUD accepted public comment. The final rule will be published in the Federal Register June 25 and becomes effective July 25.

May

Donovan, Castro Nominated to Lead OMB, HUD

WASHINGTON– May 23, 2014

President Barack Obama today nominated U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan to be the new director of the Office of Management and Budget (OMB). He also nominated San Antonio Mayor Julian Castro to replace Donovan as HUD Secretary. The nominations will now go to the Senate for approval.

Tune in to next week’s Tax Credit Tuesday podcast to learn more.

Committee Approves HUD Appropriations for Fiscal Year 2015

WASHINGTON– May 7, 2014

The House Appropriations Committee today approved the fiscal year (FY) 2015 Transportation, Housing and Urban Development funding bill, which reflects an allocation of $52 billion in discretionary spending – an increase of $1.2 billion above the FY 2014 enacted level and a decrease of $7.8 billion below President Obama’s budget request. The legislation includes a total of $40.3 billion for the Department of Housing and Urban Development, a decrease of $769 million below the FY 2014 enacted level and $2 billion below the administration’s funding request.

Details about the funding levels set by the bill can be found on the Notes from Novogradac blog.

April

Rent & Income Limit Calculatorę Updated with HOME Limits

SAN FRANCISCO– April 28, 2014

Novogradac & Company LLP has released an updated version of the Rent & Income Limit Calculator© featuring the U.S. Department of Housing and Urban Development's (HUD’s) 2014 HOME income limits and rent limits, which are effective on May 1, 2014.

In addition to the 2014 HOME rent and income limits, Novogradac's 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.

HUD Invites Input on Promise Zone Selection Process

WASHINGTON– April 17, 2014

The U. S. Department of Housing and Urban Development (HUD) today issued a notice requesting public comment on the proposed selection process, criteria and submissions for the second round of the Promise Zone initiative, a program that helps connect low-income communities with public and private resources. The first five Promise Zones were announced in January 2014 and HUD plans to designate up to an additional 15 communities by the end of 2016. Among other things, proposed changes for qualifying criteria in the second round include increasing the poverty or extremely-low-income rate threshold from 20 percent to 33 percent. Additional proposed changes are detailed in the notice. Comments are due June 16, 2014.

March

HUD Releases FY 2015 MIPs

WASHINGTON– March 31, 2014

The U.S. Department of Housing and Urban Development (HUD) today released a notice announcing the mortgage insurance premiums (MIPs) for Federal Housing Administration (FHA) multifamily, healthcare facilities and hospital mortgage insurance programs that have commitments to be issued or reissued in fiscal year (FY) 2015. The FY 2015 MIPs are the same as FY 2014 MIPS, which were published in the Federal Register on September 20, 2013. The upfront MIP amount charged for FHA mortgage insurance will be 50 basis points for affordable and market-rate properties. The FY 2015 MIPs are effective Oct. 1, 2014.

HUD Multifamily Office Outlines Priorities for 2014

WASHINGTON– March 12, 2014

The U.S. Department of Housing and Urban Development (HUD) Office of Multifamily Housing issued a memorandum outlining policy priorities for calendar year 2014. It identified 25 policy priorities, including providing more flexibility to properties in HUD’s low-income housing tax credit (LIHTC) pilot program for Section 223(f) loans; extending the LIHTC pilot program’s timelines and underwriting standards to Section 221(d)(4) loans; and lifting the 60,000-unit Rental Assistance Demonstration (RAD) cap from public housing and Section 8 Moderate Rehabilitation properties. Policies were developed by the Office of Multifamily Housing’s new Program Administration Office (PAO) and the memorandum includes contact information for PAO staff.

Administration Budget Provides $46.7 Billion for HUD

WASHINGTON– Mar. 4, 2014

In its proposed budget for fiscal year (FY) 2015, the Obama administration provides $46.7 billion for U.S. Department of Housing and Urban Development (HUD) programs, which is $1.2 billion above the 2014 enacted level. The proposal includes $1 billion to capitalize the Housing Trust Fund to expand the supply of housing targeted to extremely low-income families.

February

HUD Releases FY 2014 Annual Adjustment Factors

WASHINGTON– Feb. 14, 2014

The U.S. Department of Housing and Urban Development (HUD) today released the fiscal year (FY) 2014 Annual Adjustment Factors (AAFs) for the Section 8 Housing Assistance Payments (HAP) program. The FY 2014 AAFs for adjustment of contract rents on assistance contract anniversaries go into effect on Feb. 18, 2014. AAFs are used to adjust contract rents for units during the initial term of the HAP contract and for all units that are in the Project-Based Certificate program. The annual adjustment factors are based on a formula using residential rent and utility cost changes from the most current annual Bureau of Labor Statistics Consumer Price Index survey. Owners who participate in HAP programs such as the New Construction, Substantial Rehabilitation and Moderate Rehabilitation programs, Loan Management and Property Disposition programs, and the Project-Based Certificate program must provide annual adjustments to monthly rentals for units covered by the contracts.

January

Senators Urge FHFA to Fund Affordable Housing

WASHINGTON– Jan. 27, 2014

A group of 33 senators last week sent a letter to Mel Watt, director of the Federal Housing Finance Agency (FHFA), urging him to lift the suspension of contributions to the National Housing Trust Fund (NHTF) and the Capital Magnet Fund (CMF). Initiated by Sens. Jack Reed, D-R.I.; Barbara Boxer, D-Calif.; Elizabeth Warren, D-Mass.; and Bernie Sanders, I-Vt., the letter argued that funding the NHTF and CMF would help alleviate the national affordable rental housing shortage. Contributions to the NHTF and CMF have been suspended since 2008, when Fannie Mae and Freddie Mac, the intended funding sources, were placed into conservatorship.

HUD Requests Comments on Public Housing Renewable Energy Capacity Baseline

WASHINGTON– Jan. 20, 2014

The U.S. Department of Housing and Urban Development (HUD) today issued a notice requesting public comment that will establish a baseline assessment of the renewable energy capacity in HUD’s public housing and federally assisted multifamily housing portfolios. The assessment will support President Obama’s Climate Action Plan, which calls for the installation of 100 megawatts of renewable energy generation by 2020 at low-income housing tax credit, U.S. Department of Agriculture Rural Development, and public housing and multifamily-assisted properties. HUD will accept comments until March 24, 2014.  

HUD Extends Multifamily Submission Deadline

WASHINGTON– Jan. 16, 2014

The U.S. Department of Housing and Urban Development’s (HUD’s) Office of Housing has authorized a global 30-day extension on annual financial data submissions to all owners in the multifamily housing program with fiscal years that ended Dec. 31, 2013. Submissions by those owners are now due April 30, 2014. HUD offered the extension to allow owners and auditors additional time to adapt to the requirements of Housing Notice H 2013-23, which allowed certain profit-motivated and limited distribution owners to submit owner-certified financial statements instead of audited financial statements, and to the financial Assessment Subsystem - Multifamily Housing (FASSUB) release on Dec. 6, 2013, which implemented revisions to the HUD Consolidated Audit Guide, Handbook IG2000.04.

Appropriators Release Fiscal Year 2014 Budget Bill

WASHINGTON– Jan. 14, 2014

Lawmakers yesterday released the fiscal year (FY) 2014 consolidated appropriations bill that will set discretionary funding for the federal government through Sept. 30. The bill meets the terms set by the Ryan-Murray budget agreement, providing $1.012 trillion for the operation of the federal government. According to a House Appropriations Committee summary, the Transportation, Housing and Urban Development (THUD) portion of the omnibus measure includes a total of $32.8 billion for the U.S. Department of Housing and Urban Development (HUD), a decrease of $687 million below the FY 2013 enacted level. The bill provides funding to continue assistance to 2.2 million families served by the Housing Choice Voucher program, $75 million to fully fund the president’s request for 10,000 new veterans’ housing vouchers, $126 million for housing for the disabled, $383.5 million for housing for the elderly, and just more than $3 billion for the Community Development Block Grant formula program. Additional detail can be found in the joint explanatory statement that outlines the spending levels in the THUD section of the bill.