Here are four questions that test your knowledge—and that of your staff—on calculating annual income and applying correct income limits to applicant households. The answers, along with explanations, follow the quiz. Special thanks to tax credit consultant Karen Graham of Karen A. Graham Consulting LLC for her assistance in reviewing these questions.
The National Council of State Housing Agencies (NCSHA) recently sent the IRS and the Treasury Department a letter urging them to extend the temporary Housing Credit relief provided by IRS Notice 2020-53 and to make other necessary program accommodations in light of the continuing disruption of the COVID-19 pandemic.
With widespread unemployment and reduced income among renters during the coronavirus pandemic, your site might be experiencing a decline in rental income. As a result, you may be considering charging fees for certain amenities and services to offset the revenue loss and to help cover operating expenses.Tax credit regulations restrict what you can charge residents on top of their rent, and there are penalties for sites that go over the maximum rent. It’s important that you have a clear understanding of what types of fees are allowed and what types of restrictions apply.
Many owners and managers are afraid to reject applicants who are protected by fair housing laws—even if those applicants aren’t qualified to live at their site. Owners and managers worry that if an applicant accuses them of discrimination, they’ll be stuck paying steep fines and penalties.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law on March 27, 2020, includes important, immediate protections for tenants. Specifically, it mandates a 120-day eviction moratorium for tenants living in certain types of properties.
HUD recently issued new guidelines relating to assistance animals under the Fair Housing Act (FHA). Notice FHEO-2020-01, referred to as the “Assistance Animals Notice,” replaces prior HUD guidelines from 2013 and can be found at www.hud.gov/sites/dfiles/PA/documents/HUDAsstAnimalNC1-28-2020.pdf.
Every tax credit site must meet and maintain a minimum set-aside throughout a 15-year compliance period to qualify for the tax credit program. A minimum set-aside is the federally required minimum level of tax credit units at a site. To meet the set-aside, you must rent a certain percentage of the units in your building or site to qualified low-income households.
Fair housing compliance is key to successful tax credit management. Here are five online resources for you to check out. Each site offers a product, service, or activity that can help you better understand what you must do to avoid illegally discriminating against applicants and residents at your tax credit site. We’ll tell you why they’re helpful and what to expect when you visit.
The IRS Office of Chief Counsel recently issued a memorandum addressing noncompliance of common areas in LIHTC sites. The memo was issued in response to a clarification request by an IRS Program Manager for Technical Issues. The memo states that its advice may not be used or cited as precedent, but it illuminates how the IRS will approach noncompliance of a common area.
As a tax credit owner or manager, you should familiarize yourself with key documents to help you manage your tax credit site. To make it easy for you to get these documents, we’ll discuss five useful documents you can download from the Internet. We’ll tell you about each document and where you can download it. These documents are either required reading to meet the tax credit program’s requirements or helpful in improving your compliance efforts and running your site more efficiently. Here’s a rundown on each document and where to find it online.
