On Dec. 1, HUD released income limits for 2012. Under the Housing and Economic Recovery Act of 2008 (HERA), income limits are used to determine qualification levels as well as set maximum rental rates for projects funded with low-income housing tax credits and projects financed with tax-exempt...
If you're managing a tax credit site in the first year of its credit period, it's important to know that the owner may not be able to claim all the credits it expects to for that year. According to IRC Section 42(f)(2), an owner isn't allowed to take the entire credit a building is...
Suppose that, a few months after determining that a tax credit household is over-income, you've rented enough units to satisfy the next available unit (NAU) rule. If your lease doesn't give you the right to raise the over-income household's rent once you've complied with the NAU...
Last winter many parts of the U.S. experienced record-breaking snowfall. In January, a monster winter storm took aim at a third of the nation. It laid a path of heavy snow and ice from the Rockies to New England, followed by a wave of bitter cold that affected millions of people. Cities...
Sometimes verification sources don't return the forms that you send them to verify certain information such as a household member's income or student status. In these situations, you must try to verify the information by telephoning the sources. To stay in tax credit compliance, you'...
Last month, the Insider discussed how to determine whether an absentee's confinement in a hospital or nursing home is temporary or permanent. Problems with noncompliance can arise if you don't count the income of an absentee who should be considered a member of the household....
When one of your tax credit residents gets confined to a hospital or nursing home, you must decide whether the absence is temporary or permanent. This is due to the fact that a household member's temporary or permanent absence will determine whether you must count her income when you...
It's easy to make a mistake when calculating the rent you charge low-income households at your tax credit site. For instance, a staff member might have made an error in arithmetic when adding a household's utility allowance, or staff may have used the income limits for the wrong...
According to HUD's latest report on U.S. Rental Housing Characteristics, vacancies in assisted rental housing are much lower than the national average. Fewer units are affordable to low-income renters. In fact, according to the 2011 Housing and Homelessness policy statement distributed by...
Due to record heat waves set in many areas of the country this summer, you may have noticed an increase in the number of residents installing air conditioners in their windows, especially if your site has no central air conditioning. Unfortunately, residents don't always install them...
On July 1, the Environmental Protection Agency (EPA) rejected its own proposed rule that would have mandated additional responsibilities for site owners and managers under the Lead Renovation Repair and Painting (RRP) rules, which apply to buildings built before 1978. The proposal would have...
Many tax credit sites permit a resident manager, superintendent, or similar site-level employee to occupy a unit. This arrangement may raise a red flag to state auditors if the unit is not being used as permitted in the original allocation agreement with the state. Operating in the dark with...
