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Department of Housing and Urban Development News Briefs – May 2018

The U.S. Department of Housing and Urban Development (HUD) released income limits for fiscal year (FY) 2018 March 30. The limits are used to determine income eligibility for HUD-assisted housing programs, including public housing, Section 8, Section 202 and Section 811, as well as what HUD calls Multifamily Tax Subsidy Program, which includes low-income housing tax credit (LIHTC) properties. For FY 2018, the national median income increased by 5.75 percent. HUD will continue to cap increases at twice the change in national median income, which means the 2018 cap will be 11.5 percent. 

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Rep. Maxine Waters, D-Calif., issued four letters to Congress advocating on behalf of HUD programs in March. In her four letters, she calls for increased funding for fiscal year (FY) 2019. Waters called for fully funding the existing McKinney-Vento Homeless Assistance Grants contracts in FY 2019. She also requested additional funding for HUD housing programs that serve low-income families, seniors and persons with disabilities, including the Section 8 Housing Choice Voucher and Project-Based Rental Assistance programs, and the Section 202 and Section 811 programs. Waters requested increased funding and programmatic changes to rural housing programs under the Department of Agriculture, including the Rural Development Voucher program, Section 515 Rural Rental Housing Loans and the Multifamily Preservation & Revitalization Demonstration. In addition, she requested a minimum of $3.3 billion in funding for HUD’s Community Development Block Grant program. All four advocacy letters are available at www.hudresourcecenter.com.

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HUD should improve its metrics to measure the success of the Rental Assistance Demonstration (RAD) program, according to a report from the Government Accountability Office to Congress released March 22. The report, “Rental Assistance Demonstration: HUD Needs to Take Action to Improve Metrics and Ongoing Oversight,” recalculates some of HUD’s measurements and says that quality information is crucial to demonstrate the feasibility of RAD conversions. Among the report’s recommendations are to better select inputs for and identify measurement goals of the leverage ratio measurements, to implement and monitor procedures to ensure that resident safeguards are implemented, to determine how to better use databases to analyze RAD resident protections, and to prioritize and implement procedures to assess risks to the preservation of unit affordability. The report is available at www.hudresourcecenter.com.

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HUD published April 5 in the Federal Register a notice of annual factors for determining public housing agency administrative fees for the Section 8 Housing Choice Voucher, mainstream and moderate rehabilitation programs. The notice announces the monthly per-unit rates for use in determining the ongoing administrative fees for the housing agencies administering the programs. The applicability date was Jan. 1. The notice is available at www.hudresourcecenter.com.

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Love Funding announced March 13 the closing of a $5.6 million Federal Housing Administration loan to refinance and rehabilitate Winfield Estates in Texarkana, Texas. The affordable housing community for seniors offers 156 one- and two-bedroom apartments in 39 one-story buildings. All apartments are available to seniors 55 and older earning 50 or 60 percent of the area median income. Ten percent of the apartments are reserved for tenants with physical or mental disabilities. Love Funding obtained the financing through HUD’s Section 223(f) loan insurance program. 

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HUD published March 20 the report, “Understanding Whom the LIHTC Program Serves: Data on Tenants in LIHTC Units as of December 31, 2015.” The study is HUD’s fourth annual report on the demographic and economic data for LIHTC residents. HUD reports that the median income for LIHTC households in 2015 was $17,470 and that 44.5 percent of LIHTC households earned 30 percent or less of the area median gross income (AMGI). The median income was slightly more and the number of households earning less than 30 percent of the AMGI was slightly less than the 2014 numbers. The report is available at www.hudresourcecenter.com.
 

Journal Category:

Department of Housing and Urban Development

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