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Property Compliance News Briefs - November 2014

On Sept. 23, U.S. Department of Housing and Urban Development (HUD) Secretary Julián Castro announced nearly $7.5 million in Multifamily Housing Service Coordinator program grants. The grants will be used to help senior citizens and persons with disabilities receive health care, meals and other services. The grants were awarded to 39 private housing development owners located in 21 states and are designed to allow eligible owners of multifamily housing for the elderly or disabled to hire and support a service coordinator. The funds will cover cost such as salary, benefits, quality assurance, training, office space, equipment and other related administrative expenses.

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On Sept. 17, HUD’s Office of Inspector General (OIG) released an audit report for HUD’s Office of Multifamily Housing programs entitled, “Owner Advances and Distributions in Multifamily Housing Programs.” OIG says the audit was conducted based on an internal audit suggestion expressing concern that multifamily property owners took unauthorized distributions or owner advances with no consequence. The audit’s objective was to determine whether HUD enforced the requirements of the regulatory agreements and HUD handbooks that concerned owner advances and distributions. The report found that HUD did not always enforce the requirements. OIG reports that of the 54 property owners reviewed, 10 had unauthorized distributions or owner advances that were not required to be repaid. The audit report recommended that the acting director of the Office of Asset Management and Portfolio Oversight provide guidance to multifamily property owners on the requirements of HUD Handbook 4370.1, Chapter 2. The report also recommended that the acting director develop and implement detailed operational procedures to ensure the repayment of unauthorized distributions and owner advances.

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The California Tax Credit Allocation Committee (TCAC) released Sept. 26 an updated placed-in-service (PIS) checklist to be accompanied with all placed-in-service/request for Form 8609 submissions. TCAC says the updated PIS checklist was developed as a tool to eliminate common errors during the review process. Items in Section 5: Energy Efficiency and Sustainability Building Methods were updated. The updated PIS checklist is available at www.taxcredithousing.com.

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On Sept. 24, the Wisconsin Housing and Economic Development Authority (WHEDA) announced that AHTC Form 205–Utilities Information was revised. The revisions were made because of the increased submission of incomplete forms from owners, managers and agents. For example, WHEDA noted a common is omission that the utility method is not always identified for buildings. The revised monitoring form is available at the Wisconsin Housing and Economic Development Authority.

Journal Category:

Property Compliance

Authors:

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