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Property Compliance News Briefs - May 2016

The California Tax Credit Allocation Committee (TCAC) announced March 9 that the 2016 TCAC Excel application’s sources-and-uses budget now includes language that allows the sources and uses budget to serve as the template for the final cost certification. This enables the TCAC staff to insert placed-in-service language into the budget page so that it can be used by the tax professional preparing the final cost certification. TCAC specified that all owners should be aware that updating the TCAC Excel application sources-and-uses budget to match each line item of the final cost certification is a part of the requirement to provide an updated TCAC Excel application with the placed-in-service package.

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TCAC released a frequently asked questions (FAQs) document March 3 for California utility allowance calculator (CUAC) submissions. A total of 52 questions are answered and include such topics as TCAC submission requirements, how CUAC affects tenant rents, whether CUAC can be used for rehabilitation applications and what the timing of the new utility allowance is for LIHTC properties. The FAQs are available at www.taxcredithousing.com.

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On March 23, the Maryland Department of Housing and Community Development announced the availability of $3.7 million in grant funds to multifamily properties for energy conservation retrofit work in eligible Baltimore properties. In order to be eligible, a property must be in the Baltimore Gas & Electric utility service area, and 80 percent of the tenants must have income at or below 60 percent of the area median income (AMI). In addition, there must be acceptable utility metering, and only single–room-occupancy (SRO) in shared housing facilities with five or more units, townhouse developments, garden-style apartments, midrise apartments and high-rise apartments building types may be served. New construction projects are not eligible. All installation work must be completed by April 30, 2017.

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TCAC announced March 3 that it is inviting public comment on its proposed policy regarding resyndication and over-income tenants. Due to a number of inquiries to TCAC and California Debt Limit Allocation Committee (CDLAC) on evaluating resyndication applications and over-income tenant levels, the two organizations proposed several policies. For purposes of the tax-exempt bond and 4 percent LIHTC, TCAC and CDLAC will allow a development to receive a reservation even when it is known that it cannot meet the 10-percent-at-50-percent requirement with its current households. For purposes of the competitive 9 percent and 4 percent-plus state LIHTC programs, TCAC will not provide a resyndication applicant with lowest income points unless the applicant can show that the project, as occupied at application independent of unit sizes, can meet the income targeting for which the applicant is seeking points. The complete memo is available at www.taxcredithousing.com.

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The Utah Housing Corporation (UHC) released March 25 an updated version of its compliance manual. The manual is a training and reference guide for the administration of the LIHTC program and is intended to answer questions regarding the procedures, rules and regulations of the LIHTC program. This version covers such topics as program fundamentals, annual reporting requirements, UHC certification and review requirements and guidance for compliance and monitoring in the extended-use period. The updated version is available at www.taxcredithousing.com.

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The Ohio Housing Finance Agency (OHFA) announced an updated management on-site questionnaire, effective May 1. The document will now be available online, and is located on the OHFA website under the tab “additional forms.” OHFA staff expects that by having the document online, owners and management companies will be able to complete the questionnaire at any time before a compliance review after receiving notification of a review.

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The Mississippi Home Corporation (MHC) announced March 29 the 2016 LIHTC compliance monitoring requirement updates. Updates include revisions made to include certain fees as tuition for Section 8 residents, an update to policies regarding properties that sub meter utilities to include energy from renewable sources and wording revised to identify the minimum number of units required to be inspected for a LIHTC development. All of the policy and procedural changes and additions were effective May 1. The bulletin is available at www.taxcredithousing.com.

Journal Category:

Property Compliance

Authors:

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