Property Compliance News Briefs - February 2017

Friday, February 3, 2017

The California Tax Credit Allocation Committee (TCAC) released Dec. 19, 2016, a notice and announced a public comment period for a proposed schedule of compliance violation fines. Because the IRS does not enforce deeper affordability or other requirements or commitments applicable to a development during the first 15 years or any requirements after Year 15, TCAC is authorized to levy fines for noncompliance violations. As such, for smaller violations, the schedule provides a correction period, generally 30 days. In all cases, the schedule proposes additional fines if violations remain uncorrected. In the event that fines assessed against a property owner are not paid within six months of initial assessment, TCAC will provide reasonable notice to the owner and file a lien against the property. Comments were due Jan. 31. TCAC anticipates a target date of March 15 for presentation of the schedule and resolution to the committee.

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The Tennessee Housing Development Agency (THDA) announced that effective Dec. 15, 2016, all vacant apartments at Tennessee low-income housing tax credit (LIHTC) properties can be leased to displaced households (with a grace period on the full income certification) as  a result of the Tennessee Wildfires as described in FEMA DR-4293. The IRS issued Revenue Procedure 2014-049, which owners follow when leasing their vacant apartments to displaced households. Specifically, Revenue Procedure 2014-049 allows state agencies to provide relief for buildings severely damaged in a major disaster area. Revenue Procedure 2014-049 is available at www.thda.org.

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The Ohio Housing Finance Agency’s (OHFA) office of program compliance released Dec. 1, 2016, a revised policy on signature dates on tenant income certifications (TICs). The policy guidance is only for move-in TICs, move-in dates, effective dates and signature dates. The revised policy does not apply to recertification TICs. The requirements are for all properties in initial lease-up, residents in an acquisition/rehabilitation development that move in after the date of acquisition and all properties that have completed their lease-up. In addition, OHFA announced the deadline for the 2016 annual owner certifications and tenant data is March 1. Owners are required to submit the 2016 Annual Owner Certifications and Tenant Data via OHFA’s online reporting system DevCo Online. Extended-use properties, new developments or those in lease-up phases and properties sold in the reporting year need to submit the certifications and tenant data. OHFA also announced an updated utility allowance effective Dec. 6, 2016. OHFA will no longer accept consumption-based methodology utility allowance requests. OHFA will allow for a waiver to this policy change for owners who submitted a consumption-based utility allowance request from Jan. 1, 2016, to June 30, 2016, and were approved to use that allowance. Owners of extended-use developments are not exempt from this policy change. The Utility Allowance Request Form PC-E30 and the Utility Allowance Statement of Non-Renewal Form PC-E31 were modified, and the optional form requesting utility records from residents PC-E33 was reformatted. More information is available at www.ohiohome.org.

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The Wisconsin Housing and Economic Development Authority (WHEDA) issued a memo Dec. 7, 2016, to LIHTC property owners on preparing the owners certificate of continuing program compliance (AHTC Form 100), and the unit status report (AHTC Form 200). WHEDA provided a reminder of key points when preparing the compliance AHTC Form 100 and AHTC Form 200, including postmark deadlines, signature date timing and certification period. Both forms are requirements of the Internal Revenue Service (IRS) and WHEDA as documentation for the 2016 tax credit compliance year. The full memo is available at www.wheda.com.

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