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The Housing
& Economic Recovery
Act of 2008
Urgent Notice
Among many changes, the nine
listed below affect the way you do Compliance at your project.
Most of the states have not yet decided how to implement these
changes. Each state has its own restrictions. Check with your
state before you make any changes to your program.
1. Rural
Projects may use the greater of Area Median Gross Income (AMGI)
or National Non-Metropolitan Median Income. Applicable only to
projects in rural areas (as defined in Section 520 of the
Housing Act of ’49, 42USC 1490,
and to all 9% LIHTC properties.
It does not apply to Bond financed properties.
Effective: Rent & Income determination made after July 30,
2008.
2.
Military Basic Allowance for Housing (BAH)
is not treated as income.
This rule applies
only to “qualified military installations”:
a.
1,000+ service members as of 6/1/08.
And
b.
Service members 20% higher than on
12/31/05.
Effective: July 30, 2008 – Expires: January 1, 2012.
3. General
Public Use rule now includes individuals who:
a.
Have special needs
b.
Are members of a specified group under a
federal or state program
c.
Are involved in artistic or literary
activities
Effective: Building placed in service before, on, or after July
30, 2008.
4. Provides
a “hold harmless” provision for reduction in AMGI. Income
limits for a project may not be less than the income limits for
the project for the preceding calendar year.
Effective: Income determination made after July 30, 2008.
5. State
Agencies are now required to collect certain data on Housing
Credit projects. This includes information about households’
race, ethnicity, family composition, age, income, use of rental
assistance under section 8 or other similar assistance,
disability status, and rental payments.
6. Next
Available Unit rule for LIHTC applies similarly to Tax-Exempt
Bond projects.
Next
available unit rule is a building by building rule.
Effective: Determination of status for periods beginning after
July 30, 2008.
7. Student
rule for LIHTC applies similarly to Tax-Exempt Bond projects.
Effective: Determination made after July 30, 2008.
8. A
new student status exception is added:
Full time students who were
previously in a foster care program are not disqualified due to
their student status.
Effective: Determination made after July 30, 2008.
9. Tenant
annual re-certification is waived for 100% Housing Credit
projects.
Effective for years ending after July 30, 2008.
This rule requires additional
guidance from IRS. It is unclear at this time how to handle the
continuous eligibility of households with gross income exceeding
140 percent AMI at re-certification, and the change of
households’ student status during the term of the lease.
·
Consult
your State Allocation Agency before you implement any changes.
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compliance questions?
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