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Property Compliance News Briefs - June 2011

In the wake of severe storms and tornadoes in April, the Alabama Housing Finance Authority (AHFA) issued procedures for low-income housing tax credit (LIHTC) property owners to participate in temporary emergency housing relief. Under temporary relief housing, the agency said low-income individuals displaced from their principal place of residence as a result of a major disaster may be housed in vacant LIHTC units for a period not to exceed four months beyond the date of the president's major disaster declaration. The original place of residence must be located in a jurisdiction designated for individual assistance by the Federal Emergency Management Agency (FEMA). AHFA requires owners to obtain written approval before housing any displaced individuals, but owners do not need to meet certain compliance documentation requirements and will not suffer a reduction in qualified basis that would cause LIHTC recapture, provided the owner follows all other temporary housing relief procedures. Instructions and a list of declared disaster counties are available at www.ahfa.com.

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The Georgia Department of Community Affairs (DCA) Office of Affordable Housing released its 2011 utility allowances, which took effect on June 1. As the Journal of Tax Credits went to print, the U.S. Department of Housing and Urban Development (HUD) had not yet issued 2011 area median incomes. DCA's utility allowances are posted on the agency's website at www.dca.ga.gov.

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New Hampshire Housing (NHH) amended its HFA: 204 rules for multifamily property owners and managers. The rules establish procedures for the use and operation of a property's replacement reserve and residual receipts accounts. The agency noted that the definitions of surplus cash and sponsor fee have changed since the previous HFA: 204. Other changes include elimination of the advertised public bidding requirement for replacement reserve funded work and a limit increase for work items that require competitive bid solicitation. Interested parties can request a copy of HFA: 204 from an NHH asset manager.

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Darryl C. Towns joined New York State Homes and Community Renewal (HCR) as commissioner and chief executive officer. Towns will oversee the state's integrated housing and community renewal agencies. His priorities include continuing the integration process at HCR to identify new efficiencies, enhance the effectiveness of its programs and reduce costs; utilizing HDR resources to stimulate the upstate economy; and working with elected representatives to extend New York City's rent regulations. Brian Lawlor, who managed the agency integration process, will serve as HCR's chief operating officer.

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The Council of Large Public Housing Agencies (CLPHA) submitted comments to HUD expressing concerns with several provisions of the Public Housing Assessment System (PHAS) interim rule. HUD, in an interim rule to conform PHAS to asset management, revised the regulations for implementing PHAS, a system that collects data about a series of indicators designed to assess the effectiveness of public housing management. CLPHA said the interim rule has made some improvements to the PHAS regulations, but listed some areas of concern, including the rule's lack of a one-year transition period for housing authorities; the disparity between large and small PHAs' assessment frequencies; and the inclusion of accounts payable as a performance measure. CLPHA represents more than 70 large PHAs that own and manage 40 percent of the nation's public housing program. Read the full comment letter to HUD on the council's web site at www.clpha.org.

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The Texas Department of Housing and Community Affairs (TDHCA) published its 2010 application forms and procedures manual for the 10 percent test. Recipients of 2010 LIHTCs are required to document that more than 10 percent of the development owner's reasonably expected basis was incurred no later than six months from the date the owner and TDHCA executed the carryover allocation document. TDHCA said all awardees must file the test documentation or file an extension on or before July 1 at 5 p.m. However, negative points might be given on future projects if an extension is requested. The 10 percent test forms and instructions for completing the documentation are available at www.tdhca.state.tx.us. Novogradac & Company provides a full range of LIHTC compliance services, including 10 percent test reports and related services. For information, call Jim Kroger, CPA, at 415-356-8000.

Journal Category:

Property Compliance

Authors:

Novogradac

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