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Property Compliance News Briefs - November 2015

The California Tax Credit Allocation Committee (TCAC) released a memo Sept. 8 regarding low-income housing tax credits (LIHTCs) and ownership transfers. TCAC receives requests from development sponsors to sell or transfer ownership interests in existing LIHTC developments. To process the requests, TCAC staff must perform a qualifications review to determine if sufficient development and property management experience exists for the newly proposed owner and property management organization. TCAC staff developed a checklist of required items that must be submitted. Items on the checklist include, but are not limited to, a letter from current owner of record notifying TCAC of the proposed sale of existing tax credit property, a copy of the purchase/sales agreement, an Internal Revenue Service (IRS) letter that shows the federal taxpayer identification number for the new ownership entity and a completed TCAC property ownership profile form identifying the new ownership entity and property management agent. The full checklist is available at www.taxcredithousing.com.

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The Ohio Housing Finance Agency (OHFA) Office of Program Compliance released Sept. 25 a revised lease addendum for LIHTC properties. OHFA reports that the revision was initiated in response to an increase in resident complaints regarding lease nonrenewal, lack of good cause eviction and other termination of tenancy. The agency says to ensure protection for residents in LIHTC-funded properties, OHFA is requiring owners/property managers to begin using the revised addendum effective Jan. 1, 2016. The addendum should be used for all new move-ins. For residents who are in place before Jan. 1, 2016, owners/property managers should use the revised addendum at the time of annual recertification or verification of student status. Failure to use the revised addendum may limit an owner’s ability to access OHFA program funding. The revised lease addendum is available at www.taxcredithousing.com.

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On Oct. 6, OHFA released the second issue of the 2016-2017 Qualified Allocation Plan (QAP) frequently asked questions (FAQs). The FAQ clarifies commonly asked questions concerning the QAP. The document also responds to inquiries requiring OHFA’s interpretation of its guidelines. All questions must be submitted to OHFA at least three business days before each scheduled release of the FAQ. OHFA provided the complete list of FAQ releases, with three updates occurring in November: Nov. 2, Nov. 16 and Nov. 30. The updated FAQ and the list of FAQ updates are available at www.taxcredithousing.com. In addition, OHFA released an updated subsidy layering review (SLR) guideline and application. These documents are also available at www.taxcredithousing.com.

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On Oct. 1, the U.S. Department of Housing and Urban Development (HUD) released notice PIH-2015-16, “Financial Reporting Requirements for the Housing Choice Voucher Program Submitted through the Financial Assessment Subsystem for Public Housing and the Voucher Management System.” The notice clarifies the financial reporting requirements and deadlines for public housing authorities (PHAs) that administer the Housing Choice Voucher (HCV) and HCV-related programs. More information is available at www.hud.gov.

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The Public Housing Authorities Directors Associations (PHADA) published an article on its website Oct. 6 about frequently asked questions (FAQs) concerning HUD’s implementation of fiscal year (FY) 2015 flat rent law. The article discusses information on each flat rent option, a step-by-step explanation of how to access HUD data, phasing in flat rent increases and the intersection of LIHTC rents and public housing flat rents. More information is available at www.phada.org.

Journal Category:

Property Compliance

Authors:

Novogradac

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