WASHINGTON – Aug. 19, 2015
The U.S. Department of Housing and Urban Development (HUD) will publish in the Federal Register tomorrow a final rule on revising and streamlining the portability process for the Housing Choice Voucher program. Key changes include removing the mandatory absorption requirement discussed in a 2012 proposed rule and clarifying the notification requirement for mandatory voucher suspension; requiring the public housing authority (PHA) from which the family originally received the voucher to notify the local HUD office within 10 business days of a determination to deny a portability move based on insufficient funding; providing that the voucher issued by the receiving PHA to the family may not expire before 30 calendar days from the expiration of the initial PHA’s voucher; requiring briefings for participants on portability and the benefits of living in low-poverty census tracts; and allowing a family to choose the receiving PHA to administer its voucher. HUD plans to issue guidance on applicability of portability to project-based vouchers in the near future. The final rule will be effective Oct. 1.
WASHINGTON – Aug. 10, 2015
The U.S. Department of Housing and Urban Development (HUD) today published its revisions to the Section 8 Renewal Policy guidebook and a proposed rule revising its previous participation reviews of prospective multifamily housing and healthcare program participants, also known as HUD Form 2530. The revised Section 8 Renewal Policy guidebook will be effective Nov. 1 and will apply to renewal and amend rent packages received by HUD or postmarked by Nov. 3. Comments on the proposed rule are due Oct. 9.
Tune in to the Aug. 18 episode of the Tax Credit Tuesday podcast for more information.
WASHINGTON – July 16, 2015
The U.S. Department of Housing and Urban Development (HUD) today issued a final notice inviting applications for its Small Buildings Risk Sharing Initiative. HUD says the initiative allows the agency to target its products to an important and underserved part of the rental market and that partnering with community development financial institutions (CDFIs) and other lenders who have on-the-ground relationships with small building owners in their communities will support affordable housing production and preservation. Under the program, qualified participating entities (QPEs) will enter a 50 percent risk-sharing arrangement with HUD to underwrite, originate and service loans for HUD multifamily mortgage insurance for project acquisition, refinancing, rehabilitation and/or equity take outs. New construction loans are excluded. Loan amounts are limited to $3 million or $5 million for those in areas designated by HUD as high-cost areas.
Tune in to the July 21 Tax Credit Tuesday podcast for more information.
WASHINGTON – July 8, 2015
The U.S. Department of Housing and Urban Development (HUD) today announced a final rule on affirmatively furthering fair housing. The final rule clarifies existing fair housing obligations for HUD program participants to incorporate into their planning processes. HUD said it will provide open data to program participants and the public on patterns of integration and segregation, racially and ethnically concentrated areas of poverty, disproportionate housing needs and disparities in access to opportunity.
Tune in to the July 14 episode of the Tax Credit Tuesday podcast for more information.
WASHINGTON – June 25, 2015
The U.S. Supreme Court today issued its decision in the case Inclusive Community Properties Inc. vs. Texas Department of Community Affairs. The 5-4 decision allows complaints to be made under the Fair Housing Act based on “disparate impact,” which is when a policy that appears to be neutral has a discriminatory effect on a protected class.
Tune in to the June 30 episode of the Tax Credit Tuesday podcast for more information and visit the Notes from Novogradac blog for analysis.
WASHINGTON – June 23, 2015
The Senate Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies (THUD) today approved a fiscal year (FY) 2016 THUD funding bill that would reduce HOME program funding from $900 million in FY 2015 to $66 million in FY 2016. The bill provides $55.7 billion in total discretionary budget authority, an increase of $1.88 billion from FY 2015 and $7.3 billion less than the amount requested by the president. The THUD Subcommittee appropriations bill is now available for consideration by the full Senate Appropriations Committee on Thursday.
WASHINGTON – May 1, 2015
Rep. Maxine Waters, D-Calif., today introduced the Public Housing Tenant Protection and Reinvestment Act of 2015. The legislation includes provisions that would require a one-for-one replacement for any demolished or disposed public housing units; authorize an additional $5 billion annually for the backlog of public housing capital needs; allow the Secretary of the U.S. Department of Housing and Urban Development (HUD) to establish the Capital Fund Loan Guarantee; and provide statutory authorization for the Choice Neighborhoods Initiative.
WASHINGTON – April 29, 2015
The House Appropriations Committee Tuesday released the fiscal year (FY) 2016 Transportation, Housing and Urban Development (T-HUD) funding bill. The bill includes funding for the Department of Transportation, the Department of Housing and Urban Development (HUD) and other related agencies. The bill was approved earlier today at a meeting of the Transportation, Housing and Urban Development Subcommittee. The bill provides $55.3 billion in discretionary spending, which is $1.5 billion more than the FY 2015 funding level and $9.7 billion less than the president’s budget request. The legislation includes $42 billion for HUD in FY 2016, which is $1 billion more than the FY 2015 enacted level and $3 billion less than the president’s request. In addition, the bill halts funding for the Housing Trust Fund. The bill will go to the House Committee on Appropriations.
WASHINGTON – April 14, 2015
Low-income housing tax credit (LIHTC) property owners and managers are reminded that on Monday, in accordance with Rev. Ruling 94-57, the 45 day grace period for implementing the U.S. Department of Housing and Urban Development (HUD) fiscal year (FY) 2015 income limits for properties funded by the LIHTC or tax-exempt bonds will expire. Multifamily tax subsidy projects (MTSPs) must use FY 2015 income limits to determine qualification levels and to set maximum rental rates by Monday to remain in compliance.
The Novogradac Rent & Income Limit Calculator© has been updated in beta version to include the FY 2015 rent and income limit data, which was released March 6. The Rent & Income Limit Calculator© will calculate IRC Section 42(i)(3)(A) LIHTC rent and income limits for every county and for every metropolitan statistical area (MSA) in the United States.
WASHINGTON – April 6, 2015
Rep. Keith Ellison, D-Minn., last month reintroduced a bill to expand funding for the National Housing Trust Fund and the low-income housing tax credit (LIHTC). The Common Sense Housing Investment Act of 2015 (H.R. 1662) would increase the per-capita allocation from $2.30 to $2.70. The legislation would also provide a 50 percent eligible basis boost for rental housing targeted to extremely low-income households. The amendments would be effective for LIHTC allocations made in calendar year 2015 or later.
H.R. 1662 would also expand Section 8 rental assistance and the public housing capital fund.
WASHINGTON – March 25, 2015
The Federal Housing Finance Agency (FHFA) will publish in the Federal Register tomorrow a final rule on requirements related to allocations by Fannie Mae and Freddie Mac to the Housing Trust Fund and Capital Magnet Fund. The rule prohibits the government-sponsored entities from passing the cost of such allocations through to the originators of loans they purchase or securitize, and it finalizes and continues the Dec. 16, 2014 interim final rule without changes.
Tune into the March 31 episode of the Tax Credit Tuesday podcast to learn more.
WASHINGTON – March 25, 2015
The U.S. Department of Housing and Urban Development (HUD) yesterday issued a new proposed rule to implement protections included in the Violence Against Women Reauthorization Act of 2013 (VAWA 2013). The rule would amend HUD’s regulations to fully protect against housing discrimination all of its residents who are survivors of domestic and dating violence, stalking and sexual assault—regardless of sex, gender identity, sexual orientation or age. The VAWA 2013 reauthorization expands coverage to include nearly all HUD initiatives and other programs, including the Low-Income Housing Tax Credit (LIHTC) program. Public comment can be made about the proposed rule for 60 days after it’s published in the Federal Register.
Tune into the March 31episode of the Tax Credit Tuesday podcast for more information.
WASHINGTON – March 6, 2015
The U.S. Department of Housing and Urban Development (HUD) today released income limits for fiscal year (FY) 2015. These income limits are used to determine income eligibility for HUD’s assisted housing programs, including public housing, Section 8, Section 202 and Section 811. Income limits that are used to determine qualification levels and to set maximum rental rates for low-income housing tax credit (LIHTC) or tax-exempt bond projects, which HUD refers to as multifamily tax subsidy projects (MTSPs), are calculated and presented separately from the Section 8 income limits.
Novogradac & Company LLP is currently updating the Rent & Income Limit Calculator© to include the 2015 data. Subscribers to Novogradac & Company’s free Industry Alert service will receive an email announcement when this update has been completed.
Tune into the March 10 Tax Credit Tuesday podcast for initial information about the income limits. For in-depth analysis, register for the Novogradac 2015 HUD Rent and Income Limits and Your Tax Credit Property Webinar at 1 p.m. EDT on March 17.
WASHINGTON – Feb. 10, 2015
The U.S. Department of Housing and Urban Development (HUD) announced it will clarify existing affordable housing production guidance in a revised Multifamily Accelerated Processing (MAP) Guide. In an effort to streamline and synchronize HUD and low-income housing tax credit (LIHTC) developments, HUD’s organizational changes include a single-underwriter model, dedicated Rental Assistance Demonstration (RAD) teams and expansion of its Federal Housing Administration (FHA) LIHTC pilot to Section 221(d)(4). Clarifications to existing policies involve equity pay-in, bridge loans, identity of interest, subordinate debt, vacancy rates and broadened underwriting of developer fees.
The changes are effective immediately and will be incorporated into the revised MAP Guide, along with other affordable housing initiatives under development. HUD also plans to announce new affordable initiatives to its risk share programs this spring.
Tune into the Feb. 17 episode of the Tax Credit Tuesday podcast for more information.
WASHINGTON – Feb. 2, 2015
In its proposed budget for fiscal year (FY) 2016, the Obama administration provides $49.3 billion for U.S. Department of Housing and Urban Development (HUD) programs, which is $4 billion more than the 2015 enacted level. The proposal includes $21.1 billion for the Housing Choice Voucher program and $10.8 billion for the project-based rental assistance program. It would also provide $50 million to convert approximately 25,000 public housing units to project-based rental assistance contracts under the Rental Assistance Demonstration (RAD) program.
Tune into the Feb. 3 episode of the Tax Credit Tuesday podcast for more information on the proposed budget.
WASHINGTON – Jan. 30, 2015
The U.S. Department of Housing and Urban Development (HUD) today published a Federal Register notice establishing interim regulations that will govern the Housing Trust Fund (HTF) and the formula that will determine how HTF funds are distributed among eligible grantees. Each of the states and the District of Columbia are to receive a minimum allocation of $3 million. Factors that determine allocation amounts are a state’s relative shortage of rental housing available to extremely low- and very low-income families; the relative number of extremely low- and very low-income renter households living in substandard, overcrowded or unaffordable units in a particular state; and construction cost adjustment factors.
Major regulation provisions include siting and neighborhood standards; income determinations; eligible costs and activities; project requirements; tenant and homeowner qualification requirements; other federal requirements; program administration regulations; and quality control provisions.
The HTF was established under the Housing and Economic Recovery Act of 2008 (HERA) to provide grants to state governments that would increase and preserve the supply of rental housing for extremely low- and very-low-income households and to increase homeownership for extremely low- and very-low-income households. HUD said it intends to open the interim rule for public comments once funding is available and the grantees gain experience administering the HTF program.
Tune into the Feb. 3 episode of the Tax Credit Tuesday podcast for more information.
WASHINGTON – Jan. 26, 2015
The U.S. Department of Health and Human Services (HHS) last week issued its 2015 poverty guidelines, which the U.S. Department of Housing and Urban Development (HUD) will use to update its fiscal year (FY) 2015 income limits. The HHS 2015 poverty guideline for a four-person household increased by nearly 1.7 percent compared to 2014, so counties that adjusted their extremely low-income limits up to the poverty level in 2014 will likely see another increase of around 1.7 percent for 2015.
HUD anticipates that its FY 2015 income limits will be published in February. HUD delayed publishing its FY 2015 income limits, originally expected to be released in December, because of 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 an extremely low-income household is now defined as one with an income that does not exceed the greater of the HHS poverty guidelines or 30 percent of area median income (AMI).
WASHINGTON – Jan. 20, 2015
The U.S. Department of Housing and Urban Development (HUD) today released “Understanding Whom the LIHTC Program Serves: Tenants in LIHTC Units as of December 31, 2012,” a compilation of demographic and economic data about the tenants of housing built or rehabilitated with low-income housing tax credits (LIHTCs). HUD worked with state housing agencies to collect data on ethnicity, disability status, family composition and age, household income, monthly rental payments and other facts.
Tune into the Jan. 20 episode of the Tax Credit Tuesday podcast for more information.