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2011 HTC Updates. Mississippi Home Corporation Annual Housing Conference February 4, 2011. IMPORTANT NOTICE:.
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2011 HTC Updates Mississippi Home Corporation Annual Housing Conference February 4, 2011 Effective March 1, 2011
IMPORTANT NOTICE: This update is designed to focus on majorchanges and/or examples to the implementation of the HTC program since last update (2009). Minor updates, additions, clarifications, grammatical errors will not be discussed. Effective March 1, 2011
EFFECTIVE DATE All changes/updates effective IMMEDIATELY (no later than March 1, 2011) Effective March 1, 2011
SUMMARY OF UPDATES New/Revised Policies Added Verbiage New Reporting Forms NEW Effective March 1, 2011
GENERAL POLICIES Effective March 1, 2011
GENERAL POLICIES NEW Deleted: Certified Management Co. Designation Program Effective March 1, 2011
CHAPTER 1:HTC Fundamentals Effective March 1, 2011
CHAPTER 1 Eligible Basis • Commercial Space: The eligible basis of a building(s) cannot include any parts of the development used for commercial purposes • Common Area Space: Facilities for use by the tenants • Swimming pools and similar recreational facilities; • Parking areas; • Resident manager or maintenance personnel units Effective March 1, 2011
CHAPTER 1Annual Credit Authority NEW • Updated to reflect latest housing credit equivalent of $2.15 per capita; $2.47 million minimum Effective March 1, 2011
CHAPTER 2:Federal Compliance Effective March 1, 2011
CHAPTER 2Full-Time Student Households NEW During the EUP two eligibility exceptions revised: • Children in grades K-12 no longer considered FT students • Evidence of tax return not needed to validate eligibility (single-parent household) For more information on the topic, refer to chapter 8.4 (Page 31 &120) Effective March 1, 2011
CHAPTER 2Staff Unit Common Area Staff Unit Non-Common Area Staff Unit Effective March 1, 2011
CHAPTER 2Common AreaStaff Unit NEW • Common Area Staff Unit • -Reasonably required for development • -Identified in final HTC Application • -Occupied by FT staff member • -Does NOT have to income qualify • -Common Area Staff Unit Affidavit • Hire • Status Change • Duty Reassignment Effective March 1, 2011
CHAPTER 2Non-Common AreaStaff Unit Non-Common Area Staff Unit -Unit NOT requested or identified in the final HTC Application -Staff member must meet eligibility requirements Staff Unit Request form Effective March 1, 2011
CHAPTER 2Staff Unit Request & Changes NEW • Requests to change staff unit status must adhere to the following: • Any time during the year • ONE change during any six (6) month period • Staff Unit Request Form • Non-refundable fee of $500.00 per request • Common unit > Residential Rental Unit Effective March 1, 2011
CHAPTER 3:State Compliance Effective March 1, 2011
CHAPTER 3ARRA Compliance relative to TCAP Requirements per the Recovery Act: • Current marketing plan and Leasing Procedure Manual • Preventative Maintenance Plan or system • Inspection Reports (local housing code) • Copies of third party Audit Reports Effective March 1, 2011
CHAPTER 3Community Service Term of Commitment: • Minimum of ten (10) years beyond later of… • PIS date last building (project) • Date of the first class/service • (Foot Note #34): Effective 2011, Tenant Community Services & Significant Amenities Minimum requirement for underwriting. No affect on prior elections!! Effective March 1, 2011
CHAPTER 3Single-Family Lease Purchase NEW • Tenant Ownership Transfer Plan: Each unit will maintain the affordability and compliance requirements contained in the tax credit LURA until the later of: • 15-year compliance period expiration; or • Unit is sold to the tenant • NOTE: Policy to be retroactively applied!!! Effective March 1, 2011
CHAPTER 3Non-Profit Participation A development owner electing to provide housing in conjunction with a qualified non-profit organization must ensure non-profit participation throughout the initial15-year compliance period. Effective March 1, 2011
CHAPTER 4:Household Eligibility Effective March 1, 2011
CHAPTER 4Non-Custodial Children NEW Child under the age of 18 who is not emancipated, residing in a unit with his or her parents or in the process of being adopted must: • Treat as a foster child • Count any associated income Effective March 1, 2011
CHAPTER 4Non-Custodial Children NEW To count… • Permanent residence • Legal custody or guardianship • Claimed on most recent tax return • Adoption in progress Effective March 1, 2011
CHAPTER 4Married Individuals Living Apart NEW • In the absence of support documentation of the spouse’s permanent absence, eligibility must include spouse: • Temporarily absent family member and • All income counted Effective March 1, 2011
CHAPTER 4Married Individuals Living Apart NEW Examples of sufficient documentation of separation: • Divorce filing or legal separation documents • Copy of legal restraining order or documentation that prospective resident has experienced domestic violence. • Legal or official documents (i.e., tax return) indicating separate residency. Effective March 1, 2011
CHAPTER 4 Live-In Aide • Live-in Aide: • Resides with elderly, near elderly or disabled • Essential care and well being • NOT financially obligated to support tenant; Effective March 1, 2011
The calculation of total household income for a household with a foster child/adult must include: earned income and unearned income CHAPTER 4Foster Child/Adult NEW NEW NEW Effective March 1, 2011
CHAPTER 4Deeper Income Targeted Units NEW If a household occupying a deeper income targeted unit income increases above the appropriate set-aside, an owner must: • Move to new qualified set-aside • Temporarily continues to qualify for DIT set-aside • NOTE: MHC to closely monitor waiting list, occupancy records & income to enforce! Effective March 1, 2011
CHAPTER 4Treatment of Buildings … the Corporation will treat each building associated with a HTC development as a single development. …Owner will have to make a formal designation on IRS Form(s) 8609 of how building(s) will be treated (i.e., multiple building project, etc.) before MHC modifies monitoring. (GP & P #2) Page 62 Effective March 1, 2011
CHAPTER 5:Income & Assets Effective March 1, 2011
CHAPTER 5Income Limits NEW Eligibility as a low-income household depend, in part, • development’s PIS date • Location • MSA • Household Size Effective March 1, 2011
CHAPTER 5Income Limits Schedules NEW Three sets of Income Limits: • MTSPs • HERA Special • National Non-Metro (Foot Note #59) HUD no longer holds the income limits of a development harmless from decreases. The IRS (as part of the HERA legislation) continues to hold the income limits of developments in affected counties harmless on a project basis. Effective March 1, 2011
Chapter 5Verification of Annual Income Verification Requirements… • thoroughly complete • inclusive of all relevant information (i.e., no blank fields) • notes/clarification memo Effective March 1, 2011
CHAPTER 5Methods of Verification NEW Oral Verifications: In addition to the oral verification, at least three consecutive check stubs issued within 120 days. Effective March 1, 2011
Chapter 5Income Support Documentation Applicants receiving rental assistance from a federal or state (Section 8): • NO out of Pocket Rent: Minimum income requirements prohibited • Out-of-Pocket Rent: Minimum income requirements permissible to extent covers rent only Effective March 1, 2011
CHAPTER 5Income Support Documentation NEW Support Staff: Any rental concessions given to a support staff member must be included as income unless: • staff member occupies a common area staff unit • Common Area Staff Unit Status Affidavit Effective March 1, 2011
Chapter 5 Calculation Procedures Alimony & Child Support: Count payments as income unless… • Scheduled payments are not being received and • Reasonable efforts have been made to collect on all monies due, including filing with courts or agencies responsible for enforcing payments. Effective March 1, 2011
CHAPTER 5Differences in Reported Income The Corporation reserves the right to • Inspect the tenant files and/ or • Interview a prospective/ existing resident(s) Effective March 1, 2011
CHAPTER 5Minimum Income – Section 8 NEW Requirement for Section 8 Resident Prohibits refusing to lease to a Section 8 resident. Leasing practices that discriminate or have the effect of discrimination is prohibited. • IRS Section 42(h)(6)(B)(iv) Effective March 1, 2011
Chapter 5Area Median Gross Income (AMGI) In accordance with HR 3221, once the AMGI is determined for a development that PIS prior to May 14, 2010: • No decreased in future years HUD’S Hold Harmless provision Effective March 1, 2011
CHAPTER 6:Gross Rent Effective March 1, 2011
CHAPTER 6Rent Limit Methodology NEW Rent limit now determined by… • Number of bedrooms in the unit • Location of the development • MSA • (Foot Note #79): Dev. with a rent floor = carryover allocation and where the income limits are lower at PIS than at the establishment of the rent floor, the initial maximum rents for the development will be the rent floor. Initial income limits = PIS Effective March 1, 2011
CHAPTER 6Rent for units w/ Rental Subsidy NEW For tenants receiving Section 8 rental assistance, tax credit eligibility file must include: • A copy of the Housing Assistance Payment (HAP) Contract and • The current HAP Amendment from the Section 8 Effective March 1, 2011
CHAPTER 6Owner Rental Assistance Once ORA has been assigned in accordance with preferences, any deficit ORA assignments may be satisfied in accordance with an owner’s written plan of action • Owner’s ORA requirement may be extended Effective March 1, 2011
CHAPTER 6Rent Determination (Staff Units) If rent is charged for a residential staff unit the unit may disqualify as a common area unit. • Any reduction in rent in exchange for services must be considered as income to the household Effective March 1, 2011
