Use Lease Clause When Households Violate Student Rule Mid-Lease

September 28, 2017    

At this time of year, as the academic year starts, it may be a good time to review student eligibility restrictions for the LIHTC program. You probably know that, in general, you can’t rent a low-income unit at your tax credit site to a household that’s made up of full-time students...

Choose Among Four Unit Options for Site’s Model Unit

August 30, 2017    

If you’re like many tax credit managers, you might want to set aside a model unit that you can show to prospects to help “sell” your site. But before you set aside any unit at your tax credit site for this purpose, you must consider what effect your action may have on your...

Follow Seven Tips When Recertifying Households at Mixed-Income Sites

July 31, 2017    

Generally speaking, if you manage a mixed-income site, you and your staff must recertify all low-income households at the site each year. Failing to meet recertification requirements is a leading cause of noncompliance that can cost the owner its tax credits. But recertification can be a time-...

Implementing Integrated Pest Management

July 14, 2017    

By Carolyn E. Zezima, Esq.

How to Avoid Four Common Timing Mistakes During the Verification Process

June 30, 2017    

To calculate and verify household income at tax credit sites, owners and managers are required to follow the rules set out in HUD Handbook 4350.3 (Occupancy Requirements of Subsidized Multifamily Housing Programs). Specifically, sections 1 and 3 of Chapter 5 (Determining Income and Calculating...

How to Verify Guarantor's Expected Rent Payments During Certification

May 31, 2017    

Some tax credit sites may require a household to get a third party to sign a lease guaranty if its ability to pay the rent is questionable. In a guaranty, a third party (known as a guarantor) becomes legally responsible for the rent in case the household doesn’t pay. And sometimes, a...

Check Leases for Eight Tax Credit Protections and Privileges

April 27, 2017    

Before you sign a lease giving a household the right to occupy one of your low-income units at a restricted rent, you’ll want to be sure that the lease and any addenda give you the authority you need to keep the site in compliance. For instance, if your site isn’t 100 percent low-...

Follow Six Rules to Avoid Discriminating Based on Race, Religion, or National Origin

March 30, 2017    

A federal judge recently froze the latest iteration of President Trump’s travel ban, claiming that the new order is still essentially a Muslim ban. In the opinion, the U.S. District Judge pointed to President Trump’s own comments and those of his close advisers as evidence that his...

Adapt HUD Model Emergency Transfer Plan to Prepare for IRS VAWA Regs

February 27, 2017    

In 2013, when the Violence Against Women Reauthorization Act (VAWA) was signed by President Obama, the list of covered programs was expanded to include the LIHTC and HOME programs as well as numerous other programs administered by HUD and the Department of Agriculture (USDA) Rural Development...

FTC Issues Screening Guidance for Apartment Owners

January 31, 2017    

The Fair Trade Commission (FTC) recently issued new guidance for owners who use background checks to screen tenants to help them comply with the federal Fair Credit Reporting Act (FCRA), which the FTC helps enforce. If part of your applicant screening process involves running a tenant background...

Ask Your State Housing Agency Three Questions About Its Compliance Monitoring Fees

December 21, 2016    

State housing agencies incur expenses to monitor your site throughout the 15 years of the compliance period. The IRS allows the agencies to pass some of these expenses on to owners as “compliance monitoring fees.” As the manager of a tax credit site, you’re responsible for...

Prepare Site-Related Documents Prior to IRS Audit

November 29, 2016    

IRS auditors may flag sites for further review based on state agencies’ noncompliance reports. The owner’s tax returns and IRS Form 8823 noncompliance reports and other information are initially evaluated. If it’s determined that an audit is needed, an IRS auditor will formally...

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