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Property Compliance News Briefs - March 2012

The Internal Revenue Service (IRS) issued Notice 2012-18 to inform state housing finance agencies (HFA) participating in the Physical Inspections Pilot Program of an alternate method of satisfying certain requirements under Section 42. The pilot program was created by the Rental Policy Working Group to test the feasibility of avoiding duplicative physical inspections by conducting one coordinated inspection. The IRS also invited comments on the 20 percent rule for physical inspections and certification rule under Section 42. Comments on these topics or on Notice 2012-18 should be submitted by May 31. More information on this pilot program will be presented in the April 2012 issue of the Novogradac Journal of Tax Credits.


The U.S. Department of Housing and Urban Development (HUD) issued a final rule that requires owners and operators of HUD-assisted or -insured housing to make units available without regard to the sexual orientation or gender identity of any applicant or occupant. The rule also prohibits owners and operators from asking about an applicant's or occupant's gender identity for the purpose of determining eligibility or otherwise making housing available. HUD will institute the policy in its rental assistance and homeownership programs, which include the Federal Housing Administration (FHA) mortgage insurance programs, community development programs, and public and assisted housing programs. For more information, see the February 3 Federal Register notice.


In comments submitted in response to a proposed rule, the National Council of State Housing Agencies (NCSHA) and the National Association of Home Builders (NAHB) urged HUD to delay making changes to its fair housing regulations until the U.S. Supreme Court rules on a key fair housing case, Magner vs. Gallagher. The proposed rule in question would implement the Fair Housing Act's (FHA's) discriminatory effects standard by establishing standards for determining when a housing practice with a discriminatory effect violates the FHA. Magner vs. Gallagher, which pertains to whether the FHA allows discriminatory effect claims, is scheduled to be considered this month. In addition to asking HUD to delay its rulemaking until that case is decided, NCSHA's comments on the proposed rule express concern that its framework could have unintended and serious consequences on housing finance agencies' (HFAs') affordable housing efforts. According to NAHB, the proposed regulation runs the risk of creating a presumption that land use approvals for affordable development in minority areas violate the FHA, and may result in frivolous attempts to hold HFAs and developers liable for reasonable and lawful attempts to encourage development in low-income areas.


The California Tax Credit Allocation Committee (CTCAC) released the first part of its 2011 annual owners certification (AOC) package. One submission of the AOC package is required for each property in the initial federal compliance period as well as those in the extended-use period. The package is divided into two parts: part one, the AOC form and the project ownership profile form; and part two, the annual operating expense form and the lender profile form. Part one of the AOC package is due March 29. Forms for part two will be available on March 20. To find more information and to download the AOC forms, go to the California Tax Credit Allocation Committee website.


The National Affordable Housing Management Association (NAHMA) announced the winners of the 2011 Communities of Quality (COQ) awards and the 2011 Multifamily Industry awards. COQs are recognized for excellence in the way they manage the physical, financial and social condition of the properties; and for the quality of life they offer residents. The five winning developments are Trolley Square Apartments in Cambridge, Mass., for Exemplary Family Development; Back of the Hill Apartments in Boston, Mass., for Exemplary Development for the Elderly; Leyden Woods Apartments in Greenfield, Mass., for Outstanding Turnaround of a Troubled Property; Mullen Manor in Sicklerville, N.J., for Exemplary Development for Residents with Special Needs; and Aurora Apartments in Worcester, Mass., for Exemplary Development for Single-Room Occupancy Housing. The awards will be presented at NAHMA's winter meeting in Washington, D.C.

Journal Category:

Property Compliance



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