Legislative
HUD issued Notice H 2010-17, “Revised Procedures for Requesting Inspections from the Real Estate Assessment Center,” on August 23, 2010. The notice expands on HUD’s policies for servicing properties with REAC scores below 60 by delegating the authority to order certain special purpose physical inspections from REAC to the Hub Director (or designee).
As of the date of this Notice, the Hub Director has the authority to, and is responsible for, ordering physical inspections directly from REAC when:
- A property receives a first physical inspection score between 30 and 60 and the owner does not respond to the notice of violation by providing the Project Owner’s Certification and a comprehensive survey of all physical deficiencies;
- A property receives a second physical inspection score between 30 and 60 one year after the owner submitted a Project Owner’s Certification and comprehensive survey of all physical deficiencies in response to a first physical inspection score between 30 and 60. In this case, the Hub Director should follow Notice H 2010-04 by issuing a notice of violation and placing a flag in APPS and request that a REAC Quality Assurance (QA) Inspector conduct a follow-up inspection.
- A follow-up inspection is required as part of a Compliance Disposition, Enforcement plan.
As a general rule, the Hub Director now has the authority to, and is now responsible for, ordering a physical inspection directly from REAC if the inspection should be conducted by a REAC QA Inspector.
To read the notice in its entirety, please see Revised Procedures for Requesting Inspections from the Real Estate Assessment Center.
HUD’s Final Rule, “Prohibition of the Escrowing of Tax Credit Equity,” conforms FHA’s multifamily mortgage insurance regulations (24 CFR 200.54) to section 2834(c) of the Housing and Economic Recovery Act of 2008 (12 U.S.C. 1715s).
HERA changes HUD’s practice of requiring a substantial portion of the low-income housing tax credit (LIHTC) equity to be placed in escrow for potential future use over the life of the project at the time of initial endorsement. This requirement has had an inhibiting effect on the building of new LIHTC projects, and often required the use of bridge loans until the escrowed
proceeds were released.
This final rule prohibits HUD from requiring the escrowing of equity from the sales of LIHTCs at the time of initial endorsement to assure project completion and to pay the initial service charge, carrying charges, and legal / organizational expenses incident to the construction of the project. It does not prohibit HUD from requiring escrows of funds for other purposes, such as for working capital. In addition, the rule extends the same treatment to historic and New Markets Tax Credits so that the escrow requirement is eliminated when equity is provided from these types of tax credits. Finally, proceeds from New Markets Tax Credits are added to 24 CFR 200.54(c) as a type of funding that need not be fully disbursed prior to the disbursement of the mortgage proceeds, where approved by the FHA Commissioner.
The rule is effective September 22, 2010. For more information, please see http://edocket.access.gpo.gov/2010/pdf/2010-20630.pdf.
The following information was received from HUD.
Impact of EIV Release 9.1
Batch Income and Verification Reports wil be Temporarily Unavailable
Due to the deployment of EIV Release 9.1 over the weekend of April 16, 2010, the summarization job that usually runs over the weekend will not run. Therefore, the batch income reports and vertification reports will nto be available from April 19, 2010 until April 26, 2010. Owners and management agents are advised to run all batch income reports and verification reports by no later than 8 p.m. est on April 16, 2010.
The following reports will have no data from April 19, 2010, until April 26, 2010:
*Income Reports by Recertification Month
*Income Discrepancy
*New Hires
*Identify Vertification
*Deceased Tenants
*Multiple Subsidy
During this time, access to individual income reports will still be available.
The batch reports will again be available beginning April 26, 2010. We apologize for any inconvenience this may cause.
Affordable Housing Policy Legislative Priorities 2010
NAHMA has complied a list of affordable multifamily housing policy priorities which we believe are necessary to restore owners' confidence in federal housing programs, streamline administration of the programs, and increase the choices of affordable communities of quality for low-income Americans. These priorities include:
1. Ensuring a strong budget for federal affordable housing programs administered by the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture - Rural Housing Service (RHS), Accounts of particular interest include:
a. Full funding and timely payment of housing assistant payment (HAP) contracts for the project -based Section 8 and Housing Choice Voucher programs;
b. Full funding of capital advances for the Section 202 and Section 811 programs to construct new apartments for the elderly and disabled.
2. Stablizing and restarting the residential housing tax credit marketplace by:
a. Extending the Section 1602 Tax Credit Exchange Program for an additional year;
b. Increasing the housing credit carry-back period from 1 to 5 years; and
c.Broadening the investor base beyond widely-held C Corporations.
3. Advancing legislation to preserve the affordable multifamily portfolio.
4. Advancing the Section 8 Voucher Reform Act (H.R. 3045)
5. Advancing legislation allowing the Department of Housing and Urban Development to better server persons with limited proficiency in the English language by providing technical assistance to recipients of Federal funds.
Visit the NAHMA website at nahma.org for more information on each issue.
News from HUD
HUD;s NOTICE: H 09-15 transmits two important forms related to the Violence Against Women Act (VAWA). The first of these is the Certification of Domestic Violence, Dating Violence or Stalking, Form HUD-91066. The VAWA provides that O/As may request a tenant to certify that he/she is a victim of domestic violence, dating violence or stalking and that the incidence (s) of threatened or actual abuse are bona fide in determining whether the protections afforded under the VAWA are applicable. It also transmits the HUD-approved Lease Addendum (Form HUD- 91067) for use with the applicable HUD model lease for the covered project-based Section 8 program. THis addendum revises the lease to reflect the statutory requirements of the VAWA that are related to the project-based Section 8 assistance programs. The lease addendum is to be used with the applicable HUD model lease for all new admissions. For existing tenants, owners and agents must forward a copy of the lease addendum with a letter "clearly stating that the tenant can either accept the modification or move but that a response is due within 30 days."
NOTICE: H -09-15 is applicable to all O/As participating in the following project-based Section 8:
1. New Construction
2. State Agency Financed
3. Substantial Rehabilitation
4. Loan Management Set-Aside (LMSA)
5. Property Disposition Set-Aside (PDSA)
6. Section 202 Projects With Section 8 Assistance (Section 202/8)
7. Rural Housing Section 515 Projects with Section 8 Assistance (RHS Section 515/8)
To read the notice in its entirely, please see: Implementation of the VIolence Against Women and Justice Department Reauthorization Act of 2005 for the Multifamily Project Based Section 8 Housing Assistance Payments Program
http://www.hud.gov/offices/adm/hudclips/notices/hsg/files/09-15hsgn.doc.
In other news, HUD also published the 2010 Statutorily Mandated Designation of Difficult Development Areas and Qualified Census Tracts for the Low Income Housing Tax Credit Program. Please see: Statutorily Mandated Designation of Difficult Development Areas and Qualified Census Tracts for 2010
<http://edocket.access.gpo.gov/2009/pdf/E-9-23967.pdf>.
Project Based Section 8 funding recipients must obtain a D-U-N-S number for all contracts going forward in order to implement requirements from previous regulation. A notice is expected to be released in the Federal Register notifying owners of this requirement in October. The deadline for obtaining a D-U-N-S number will likely be December 2009 and January 2010. If you would like to obtain a D-U-N-S number, please check here: http://fedgov.dnb.com/webform.
Most properties receiving ARRA funding will only have to complete a report once, since no reporting is required for quarters after the funds are expended. About 500 owners who received less than $25,000 will not be subject to the reporting. However, some properties are receiving their full 12-month contracts from this funding and will be expected to file quarterly reports until the money is spent.
In order to file a report, recipients must:
*Obtain a D-U-N-S number (http://fedgov.dnb.com/webform);
Register with the Center Contractor Registry (CCR) (https://www.bpn.gov/ccr/default.aspx);
Register for an ID with federalreporting.gov (https://www.federalreporting.gov/federalreporting/home.do>tpps://www.federalreporting.gov/federalreporting/homedo
https://www.federalreporting.gov/federalreporting/home.do
New Requirement for Owners and Management Agents
Supplement Information to Application
Housing Notice H 2009-13, Supplemental information to Application for Assistance Regarding Identification of Family Member, Friend or other person or Organization Supportive of a Tenant for Occupancy in HUD Assisted Housing, was issued on September 15, 2009. The Notice also transmits form HUD-92006, Supplememt to Application for Federally Assisted Housing.
THe Notice provides quidance on implementation of the requirements of Section 644 of the Housing and Community Development Act of 1992 (Section 644). Section 644 requires that owners and management agents (O/As) must provide applicants as part of their application for housing, the option to include information on an individual or organization that the O/A may contact to assist in providing any delivery of services or special care to applicants who become tenants and to assist with resolving any tenancy issues arising during tenancy.
In order to ensure that O/A's comply with this requirement, HUD has provided a standard form for use in gathering the information from applicants. Completion of the form is optional on the part of the applicant. O/As must begin including form HUD-92006 as part of their application package by no later than 90 days from the date the Noitce was issued, September 15, 2009 Section 644 requires that O/As keep the contact information confidential and can only release the information for the stated statutory purpose: To assist the O/A in providing services or special care for such tenants, and in resolving issues that may arise during the tenancy of such tenants.
Notice H2009-13 is posted at:
http://www.hud.gov/offices/adm/hudclips/notices/hsg/
Form HUD-92006 is posted at:
http://www.hud.gov/offices/adm/hudclips/forms/