Physical Inspection Protocol Change - 3/9/2023 - On October 1, 2023, the new NSPIRE (National Standard for Physical Inspection of Real Estate ) protocol will replace Uniform Physical Condition Standards (UPCS) and Housing Quality Standards (HQS) for HUD and Low-Income Housing Tax Credit (LIHTC) projects. It is noted that there is no official notice regarding a change for LIHTC monitoring; however, Treasury Regulation 1.42-5 references 24 CFR 5.703 which defines the UPCS inspection protocol. NSPIRE standards will post to 24 CFR 5.703 when the final notice is published.
IRS Boosts Business Standard Mileage Rates for 2023 - 2/14/2023 - The IRS issued Notice 2023-03, which contains the 2023 standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.
HOTMA FINAL RULE - 1/1/2023 - HUD has released the final rule implementing Sections 102 and 104 of the Housing Opportunity Through Modernization Act of 2016 (HOTMA).
HUD Announces 2023 Income Limits Will Be Delayed - 12/15/2022 - HUD annually calculates estimates of median family income for every area of the country.
Social Security Administration Announces 8.7% Increase for 2023 - 10/15/2022 - The Social Security Administration has announced a 8.7% percent cost-of-living adjustment (COLA) for 2023.
Social Security Administration Announces 5.9% Increase for 2022 - The Social Security Administration has announced a 5.9% percent cost-of-living adjustment (COLA) for 2022. It will begin with benefits payable to more than 70 million Social Security beneficiaries in January 2022. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2021. (Note: some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
To Count or Not to Count: Unemployment, Child Tax Credit, and Emergency Rental Assistance Updates - 6/22/2021 - The CARES Act introduced three types of unemployment compensation
7 Simple Steps to Get your LIHTC Paperwork Under Control - 6/3/2021 - The daily barrage of Low Income Housing Tax Credit (LIHTC) files paperwork can quickly make you feel overwhelmed and overloaded. Technology advancements have helped streamline some processes, but it simply cannot do much of the file processing work for us.
HUD Releases 2021 Income Limits Effective 4/1/2021 - HUD published the 2021 income limits for HUD programs, Low-Income Housing Tax Credit, and Tax-Exempt Bond programs. The limits are effective on April 1, 2021.
January 2021: On January 15, 2021, the IRS issued Notice 2021-12 which provides relief to LIHTC projects in a number of areas. Due to the ongoing effects of the COVID-19 pandemic, the IRS has extended various deadlines related to projects under construction, in the first year of the compliance period, and those which are stabilized.
January 2021: Karen Graham contributes to Tax Credit Housing Management Insider
Social Security Administration Announces 1.3% Increase for 2021 - The Social Security Administration has announced a 1.3 percent cost-of-living adjustment (COLA) for 2021. It will begin with benefits payable in January 2020. Increased payments for SSI beneficiaries will begin on December 31, 2020. (Note: Some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
HUD’s Office of Multifamily Housing has updated its FAQ guidance
PART 4: WHAT TO DO IF YOU’VE BEEN DUPED BY FAKE PAY STUBS - 5/15/2020 - In previous articles, we talked about fake pay stubs, how to detect them, and how to prevent being duped. But what if some slipped by you - now what do you do?
HUD Releases 2020 Income Limits Effective 4/1/2020 - On March 31, 2020, HUD published the 2020 income limits for HUD programs, Low-Income Housing Tax Credit, and Tax-Exempt Bond programs. The limits are effective on April 1, 2020.
PART 3: PREVENTING FAKE PAY STUBS - 3/7/2020 - In previous articles, we discussed fake pay stubs being presented by applicants and how to detect them. Here we will discuss how to be proactive so you are not duped with fake pay stubs.
CARES Act Signed Into Law 3.27.2020
January 1, 2020: 2020 Mileage Rates
Business Mileage: $0.575, down from $0.58 in 2019
HUD Medical Mileage Expense: $0.17 per mile, down from $0.20 in 2019
PART 2: DETECTING FAKE PAY STUBS - 10/24/2019 - In our first article, we discussed that counterfeit pay stubs have become a real struggle for some property managers. Others do not even realize they are blindly accepting that a pay stub is real. We cannot be expected to analyze every number and letter on every pay stub; however, we can take steps to weed out the fakes.
Social Security Administration Announces 1.6% Increase for 2020 - The Social Security Administration has announced a 1.6 percent cost-of-living adjustment (COLA) for 2020. It will begin with benefits payable to more than 69 million Social Security beneficiaries in January 2020. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2019. (Note: some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
October 2019 - NCSHA publishes Model Compliance Forms for Housing Credit Developments
All state Housing Credit agencies require Housing Credit development owners to use specific forms in their compliance reporting. The National Council of State Housing Agencies, in collaboration with our members and stakeholders, developed these Model Compliance Forms for agencies to provide to development owners and other Housing Credit industry professionals:
- Owner’s Certification of Continuing Program Compliance
- Tenant Income Certification
- Employment Verification
- Certification of Zero Income
- Under $5,000 Asset Certification
- Student Self-Certification
- Student Status and Financial Aid Verification
Stacy Day Joins KAGC as VP Operations and Innovation - 10/1/2019 - Karen A. Graham Consulting is proud to announce that Stacy Day, HCCP, has joined our team as the VP of Operations and Innovation.
FAKE PAY STUBS ARE MUCKING UP INCOME VERIFICATIONS (PART 1) - 9/24/2019 - Many managers rely on pay stubs to verify employment for their applicants, and some HFA’s even require it. So we are using stubs to verify employment more than ever before. Savvy housing providers, however, are finding as many as 20% of pay stubs presented are counterfeit. This has become real struggle for some property managers while others do not even realize it is happening.
HUD Releases 2019 Income Limits 4/14/19
Karen A. Graham Consulting, LLC, Announces Partnership With Edge2Learn - 3/8/2019 - Karen A. Graham Consulting, LLC, announced today a new partnership to develop Low Income Housing Tax Credit (LIHTC) training content for Edge2Learn, an eLearning company specializing in the property management industry.
On February 26, 2019, the Internal Revenue Service published final regulations to amend compliance monitoring regulations for Low Income Housing Tax Credit (LIHTC) properties. The regulations adopt temporary regulations published Feb. 25, 2016 with a few changes. It impacts the number of days notice for an audit (from 30 to 15) and the number of units to be inspected (based on HUD REAC chart, not 20%).
On February 23, 2019, HUD released notice Standardization of REAC Inspection Notification Timelines limiting the notice for REAC inspection to 14 days.
The Hunt for Information - December 2018 HCCP The Credential article by Karen Graham
Social Security Administration Announces 2.0% Increase for 2019 - The Social Security Administration has announced a 2.8 percent cost-of-living adjustment (COLA) for 2019. It will begin with benefits payable to more than 62 million Social Security beneficiaries in January 2019. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2018. (Note: some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
IRS Revises Form 8609 to include Income Averaging Option - On May 31, 2018, the Internal Revenue Service (IRS) published an updated version of Form 8609, which is the form owners file with the IRS in order to claim low-income housing tax credits. The updated version includes an additional minimum set-aside option under line 10c on the form – the “average income” option. This new set-aside option can bring income and rent limits up to 80% of area median income. Owners should seek the advice of their accountant regarding this new option.
HUD Publishes FY 2018 HOME, HTF and Other CPD Program Income Limits Effective 6/1/18:
- 2018 HOME Income Limits
- 2018 HOME Rent Limits
- 2018 HTF Income Limits
- 2018 HTF Rent Limits
- 2018 CDBG, HOPWA, and NSP Limits
HUD Releases 2018 Income Limits 3/30/18
Social Security Administration Announces 2.0% Increase for 2018 - Monthly Social Security and Supplemental Security Income (SSI) benefits will increase 2.0 percent in 2018, the Social Security Administration recently announced. The 2.0 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 60 million Social Security beneficiaries in January 2018. Increased payments to more than 8 million SSI beneficiaries will begin on December 29, 2017. This increase must now be added to anticipated income.
2017 HOME Income and Rent Limits Have Been Published – Effective June 15, 2017
HUD Releases 2017 Income Limits 4/14/17
LIHTC Records Management Systems - Nov 2016 The Credential - HCCP - Article by Karen Graham
Social Security Administration Announces 0.3% Increase for 2017 Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 65 million Americans will increase 0.3 percent in 2017, the Social Security Administration announced today.
The 0.3 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 60 million Social Security beneficiaries in January 2017. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2016. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
2016 HOME Income and Rent Limits Have Been Published - Effective June 6, 2016
HUD Issues Final Rule on Streamlining Administrative Regulations For Public Housing, HCVs and Multifamily Housing Programs
2016 LIHTC Income and Rent Limits Have Been Published Effective 3/28/16
IRS, Treasury Amend LIHTC Utility Allowances Sub-metering Regulations - On March 3, 2016, the Internal Revenue Service (IRS) published a notice containing final yet temporary regulations that amend the Low Income Housing Tax Credit program utility allowance regulations, specifically as it relates to sub-metering. Sub-metering is utilizing a system that allows an owner to bill residents for their units' actual usage. The final regulation states that these sub-metered resident paid utilities are treated as paid by the tenant directly to the utility company. The temporary regulations also extend the principles of these sub-metering rules to situations in which a building owner sells energy produced from a renewable source (not from a local utility company) to residents at the property.
The regulations became effective March 3, 2016 upon publication in the Federal Register. Information on submitting comments on or before April 4, 2016 can be found here.
IRS Changes LIHTC Compliance Monitoring Requirements - Published by the IRS in February 2016, Revenue Procedure 2016-15 changes LIHTC compliance monitoring requirements by Housing Finance Agencies (HFAs). The long standing minimum requirement was that the HFA inspected 20% of the files and (the same) units every three years. Rev Proc 2016-15 updates this by requiring the lesser of 20% of the units or the number in the LIHTC Minimum Unit Sample Size Reference Chart (1 to max 27 units), the units chosen for file audit and physical inspections no longer need to be the same, and it permits REAC inspection protocols (with specific requirements). Though published as final, the IRS has indicated it is still open for comment. These changes are effective February 25, 2016.
Definition of Tuition as Income for Section 8 Residents Amended (November 30, 2015) - HUD has released Housing Notice 2015-12, Update to the Definition of Tuition. This Notice provides updates regarding student financial assistance & determining income for students receiving Section 8. Tuition will now be defined in the same manner in which the Department of Education defines "tuition and fees."
HUD provided guidance that, for Section 8 residents only, educational financial assistance in excess of the cost of tuition and required fees and charges must be counted as income. Examples of required fixed fees include, but are not limited to, writing and science lab fees and fees specific to the student's major or program.
Expenses that may not be included as ‘required fees and charges’ include, but are not limited to, room and board, books, supplies, meals, transportation and parking, student health insurance plans, and other non-fixed sum charges.
HUD Passbook Rate Remains at 0.06%
Social Security Administration Announces No COLA for 2016
HUD Launches Affirmatively Furthering Fair Housing Page and Ask A Question on the HUD Exchange
HUD Announces Final Rule on Affirmatively Furthering Fair Housing HUD Releases 2015 HOME Income Limits HUD Releases 2015 HOME Rent Limits HUD Releases 2015 Income Limits HHS Releases 2015 Poverty Guidelines - Expect 2015 Income Limits Soon - The U.S. Department of Health & Human Services (HHS) recently issued its 2015 poverty guidelines. These guidelines are used to determine financial eligibility for certain federal programs. Now that these guidelines have been published, HUD will release two sets of new income limits for fiscal year 2015 soon. HUD was expected to release the 2015 limits in December 2014.
HUD Publishes HOME Final Rule Applicability Charts - On July 24, 2013, HUD published a new HOME final rule. They have developed charts that summarize the changes and clarifications in the Final Rule, and assign them as they apply into three categories.
HUD Resident Protection - Owners cannot force a HUD resident to move if they don’t qualify for LIHTCs HUD Passbook Rate Changes to 0.06%
Social Security 2015 Cost Of Living Increase Announced
IRS Audit Technique Guide Released
IRS LIHC Newsletter #56 by Grace Roberston released
HUD CPD 2014 Income Limits
HUD CPD 2014 Rent Limits
HUD CPD 2014 HOME Income Calculator
IRS LIHC Newsletter #55 by Grace Roberston released
IRS LIHC Newsletter #54 by Grace Roberston released
IRS LIHC Newsletter #53 by Grace Roberston released
HUD Releases 2014 Income Limits
HUD Handbook 4350.3 Change 4 Revised
VA Compensation & Pension rate increase the same as Social Security COLA
How the Government Shutdown Affects HUD & Federal Housing Programs
HUD AWARDS $38 MILLION TO FIGHT HOUSING DISCRIMINATION
LIHTC Program and Gay Marriage Update - The IRS issuing a press release for Revenue Ruling 2003-17 recognizing legally married gay couples for federal tax purposes. Stay tuned for what this means for the LIHTC program & the full time student rule exception.
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