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Nevada LIHTC Training - Affordable Housing Compliance Workshop

Engage in detailed LIHTC program insights and compliance at the Nevada training event. Explore eligibility, hot topics, best practices & state specifics. Consult with experts for effective management.

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Nevada LIHTC Training - Affordable Housing Compliance Workshop

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  1. 2014 NEVADA LIHTC TRAININGPresented by Beth Hodges – Salter Ltd.2973 Cleveland Rd. Wooster, OH 44691330-345-7077 bhodges@saltersvcs.comwww.saltersvcs.com Presented by Beth L. Hodges; Salter Ltd.

  2. Disclaimer Materials are distributed and the seminar program is presented with the understanding that Salter Ltd. and its associates are not rendering any legal, accounting or other professional advice. Participants should be aware that rules relating to government subsidized housing, and housing compliance regulations are continually changing. The interpretation and application of regulations can vary widely, based upon specific fact, circumstances and locales. Participants are encouraged to consult with their own advisors. Salter Ltd. does not assume any liability or other consequences that result from reliance on the information conveyed during this program.

  3. 2014 NEVADA LIHTC TRAINING • Format= Triple “S” Silver State Show: • LINE-UP: 1. State 2. Social Serve 3. Salter • Covering modules of topics that are relevant to LIH / Affordable Housing Management • Not a general overall beginning training program • Opportunity to discuss specific issues at end

  4. NEVADA COMPLIANCE INFORMATION www.nvhousing.state.us/

  5. SOCIALSERVE.ORG -APARTMENT LISTINGS Socialserve.org Affordable housing listing service

  6. Salter Showwww.saltersvcs.com Beth Info EXPERIENCE IN PROGRAMS CURRENTLY REVIEWING FILES IN 30 STATES TRAININGS in 40 Plan for Rest of Today:

  7. AGENDA – 3rd “S” • LIHTC Program Background: • Applicable fractions , Minimum set-asides • Initial Eligibility, on-going Compliance 3 “H” - Hera, Hold Harmless, HOME • 140% rule; “NAU” • Changes in first year household

  8. HOT TOPICS to be COVERED VAWA Military Sexual Preference LGBT Other Fair Housing items Medical Marijuana – state vs. federal Good Cause / No Cause Evictions LEPP Plans – not LIH monitored

  9. TRENDING TOPICS - ELIGIBILITY Social Security Verification changes Direct Express Tip Compliance RMD’s - Pensions IRMAA significance Negative Assets Assets of all types

  10. OLD “FAVORITE” TOPICS Income and Asset Calculations Children in household - - custody vs. familial status Anticipating income Student Issue REASONABLE PERSON STANDARD BEST PRACTICES - DUE DILIGENCE STATE SPECIFICS

  11. APPLICABLE FRACTION / SET-ASIDE • SET- ASIDE: 20/50 OR 40/60 • Applicable Fraction – What percentage of your units need to be rented to a LIH qualified resident? • Deeper Skewing criteria / Other funding requirements

  12. APPLICABLE FRACTION / SET-ASIDE NEW TYPICAL PROPERTIES HAVE 100% LIH units: example 48 units at 60% 24 units at 50% 12 units at 30% ALL SET-ASIDES MUST BE SATISFIED AT LEASE UP AND FULFILL “NAU” WHAT WOULD BE THE SET-ASIDE FOR THIS PROPERTY?

  13. APPLICABLE FRACTION / SET-ASIDE WHAT WOULD BE THE SET-ASIDE FOR THIS PROPERTY? Reason:

  14. “NAU” - Next Available Unit 2013 Income Limits 50% : 2 person $29,100 60% : 2 person $34,920 SCENARIO: You have leased- up your entire property. Mr./Mrs. Smith income qualified a 50% unit at $28,500 for a 2 BR unit. Y2 Mrs. Smith says she has finished school and got a job at the local casino as an accountant. The family income is now at $$54,000.

  15. “NAU” - Next Available Unit 1. How much income can the Smith’s earn before it triggers “NAU” ? $________________

  16. “NAU” - Next Available Unit • 2014 Income Limits 50% : 2 person $29,100 60% : 2 person $34,920 • A 60% unit 2 BR unit is vacant at your property. What is the maximum income you can qualify a 2 person family at? ________________ • A 2 BR unit is vacant at your property. If you have no other vacancies, what is the maximum income you can qualify a 2 person family at in light of the Smith’s income ? ______________________ • Mrs. Smith is pregnant. Does this make a difference? _____________

  17. 3 “H” – HERA, HOLD HARMLESS, HOME IF I ONLY KNEW THEN WHAT I KNOW NOW - Housing & Economic Recovery Act aka H.R. 322 General rationale: Requirements:

  18. 3 “H” – HERA, HOLD HARMLESS, HOME BIGGEST QUESTIONS: What am I as a property designation. Which income numbers do I use…. what is the meaning of life.

  19. 3 “H” – HERA, HOLD HARMLESS, HOME EVERY PROPERY NUMBERS ARE BASED UPON P.I.S. PLACED IN SERVICE DATE OR CERTIFICATE OF OCCUPANCY <1/1/2009 - USE HERA (11 Counties in NV) or HIGHEST Income Limits since placed in service date 1/1/2009 or LATER - USE THE PUBLISHED INCOME LIMIT FOR THE COUNTY OR THE HIGHEST ONE SINCE PLACED IN SERVICE (AKA MTSP) EXCEPT:

  20. 3 “H” – HERA, HOLD HARMLESS, HOME EXCEPT: If property has HOME FUNDS THEN: use the lower of the current 50% (low HOME) or 60% MTSP for current MTSP Year for these units OR: if only “X%” are HOME, then …………….

  21. 3 “H” – HERA, HOLD HARMLESS, HOME EXCEPT: If property is RD (RHS) or HUD- use their limits EXCEPT: If County qualifies as Rural area and are less than the National Non-metro limit. NOTE NONE applicable in Nevada—all county limits are higher in the State.

  22. 3 “H” – HERA, HOLD HARMLESS, HOME Where can you find Placed in Service date? Multiple building issues

  23. HOLD-HARMLESS aka MTSP RECAP Hold Harmless for the Multi-family Tax Subsidy Program are for those properties place-in-service as of January 1, 2009 National Non Metropolitan NOT a factor in Nevada Limits never go DOWN for those EXCLUSIVE MTSP or HOME units WHAT YEAR TO USE BECOMES CRITICAL FACTOR

  24. HERA (Special) Property Placed in Service (PIS) prior to January 1, 2009 Impacts only CERTAIN COUNTIES/ MSA ------------------------------------------------------------------------------------------ ------one step further----- Time Frame TO IMPLEMENT Income Changes? ______________ Time Frame for Utility Rate Changes? ______________

  25. UTILITY ALLOWANCE Why is the utility allowance update so important?

  26. HOT TOPICS to be COVERED VAWA Military Sexual Preference LGBT Other Fair Housing items Medical Marijuana – state vs. federal Children in household - - custody vs. familial status Good Cause / No Cause Evictions LEPP Plans

  27. VAWA A woman applies for an apartment in your complex for herself, one year old and her newborn child. During the screening process, you learn that she’s currently staying with family members after moving out of her previous rental unit because of domestic abuse by her boyfriend and baby daddy. She says that she’s has a CPO against him. You know of the boyfriend. You have concerns that he may show up and cause problems at your community. You believe his former girlfriend lives at your complex. Plus, you only have studio and 1 BR units available.

  28. VAWA 1. Could your community face liability under state or federal law if you reject her application based on concerns for the safety and welfare of your current residents? ____________ YES ____________ NO 2. Could you reject her based upon your occupancy standards of 2 per bedroom? __________ YES __________ NO 3. What do you need to document your file? ______________________

  29. VAWA VAWA or Violence against Women Act was reauthorized 3/7/13. It is not limited to women. Includes domestic violence, dating violence, dating sexual assault, stalking, campus and tribal. Race, color, religion, national origin, sex, (meaning gender neutral) gender identification, (LGBT) sexual orientation, disability ACTUAL OR PERCEIVED

  30. VAWA • Does not apply to private housing** • APPLIES TO LIH but not specifically Section 42: • 1.42-9 (a) and 42(g)(9) and 8823 Audit Guide Chap 13 • AND All other federal housing FFHO • ** Could be basis for other fair housing legal issue

  31. VAWA • Regulation differs from HUD “One-Strike” • VAWA Prohibits such evictions • Not “Good Cause” • Does not count as serious or repeated violations of lease • ALLOWS CERTIFICATION FROM TENANT by Landlord (42 USC 14337d(u)(1)(A) PHA or 42 USC 1437(ee)(1) voucher program

  32. MILITARY A “good renter” prospect makes application at your complex. He is verified just under the AMGI income limit for your County. During the interview process, he mentions that he has enlisted in the armed forces but doesn’t know when he will be sent to basic training.

  33. MILITARY 1. Your standard lease is 1 year. Can you deny him occupancy since you know he will be breaking the lease prior to the end of the lease term? ______ YES _____ NO 2. He says that he will only be in the unit for 3 to 4 months—not the 6 month LIH requirement. Can you deny his occupancy? _______ YES _____ NO

  34. Sexual Orientation / Gender Identity Applies to LGBT NEVADA also covers transvestites NV Admin. Code Properties must be gender neutral Same other standards of “TSC” Attitude of other residents cannot become your issue

  35. OTHER FAIR HOUSING ISSUES TOP AREAS OF ISSUES: Familial Status Religious / National Origins in a age of profiling Disability – Health / Handicap “Class Membership”

  36. NOVEMBER 2013 published in Property Newsletter All children must be supervised by an adult at all times while playing outside. No sports activities, skateboarding, roller-blading, or general extracurricular activities are to take place in our community.  If we see anyone violating any of the above activities or see any unsupervised children they will be sent home immediately.“ Is there a consequence for this policy? FAMILIAL STATUS

  37. Marijuana

  38. NO CAUSE / GOOD CAUSE EVICTIONS • Good Cause: • Non Payment of Rent ALWAYS #1 • Documented negligence, abuse of premises by tenant, household member or person who has consent of tenant to be on premises (NRS 118A.110) • NOTE THAT THIS HAS VAWA CONSEQUENCES

  39. NO CAUSE / GOOD CAUSE EVICTIONS NRS 118A.310  Basic obligations.  A tenant shall, as basic obligations under this chapter:       1.  Comply with the terms of the rental agreement;       2.  Keep that part of the premises which is occupied and used as clean and safe as the condition of the premises permit;       3.  Dispose of all ashes, garbage, rubbish and other waste from the dwelling unit in a clean and safe manner;       4.  Keep all plumbing fixtures in the dwelling unit as clean as their condition permits;       5.  Use in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating, air-conditioning and other facilities and appliances, including elevators, in the premises;       6.  Not deliberately or negligently render the premises uninhabitable or destroy, deface, damage, impair or remove any part of the premises or knowingly permit any person to do so; and       7.  Conduct himself or herself and require other persons on the premises with his or her consent to conduct themselves in a manner that will not disturb a neighbor’s peaceful enjoyment of the premises.       (Added to NRS by 1977, 1336) HOW HAVE YOU DOCUMENTED A VIOLATION WHICH IS SERIOUS, REPEATED AND REMEDIATION ATTEMPTS HAVE BEEN MADE WITHOUT SUCCESS?

  40. NO CAUSE / GOOD CAUSE EVICTIONS • NO CAUSE EVICTIONS: • Does not meet Section 42 Test • Cannot non renew lease in assisted housing because you “don’t like” person; a pain to deal with etc. • Cannot non renew because person causes resident upheaval e.g. troublemaker, you don’t think that tenant should live alone, housekeeping not at your standards, have “better” applicant

  41. LEPP Plan BY SHOW OF HANDS: How many people have a LEPP at their property? How many people know what this is?

  42. TRENDING TOPICS - ELIGIBILITY ISSUES Social Security Verification changes Direct Express Tip Compliance RMD’s - Pensions IRMAA significance Real Estate Negative Assets Assets of all types

  43. SOCIAL SECURITY VERIFICATIONS SEE LETTER

  44. DIRECT EXPRESS CARD

  45. DIRECT EXPRESS CARD • Effective March 1, 2013 those persons receiving Social Security Benefits have 2 options for payment: • Electronic funds to bank account • Direct Express Card Balance on card considered an asset … Can be obtained through an ATM, online, or paper statement (.75 cent charge) all are acceptable verifications! TREAT AS ANY OTHER ASSET

  46. TIP COMPLIANCE TIP AFFIDAVIT = LAST RESORT 1. Verification on VOE or YTD 2. Pay stubs – breakout of tips on stubs 3. IF not accounting for tips on Pay Stubs What have YOU done to document this scenario and clarify

  47. RMD What does it stand for? What does it mean?

  48. IRMAA What is this? What does it mean?

  49. Review of Pension / 401K funds • If person is working, only the amount that can be withdrawn without terminating employment is counted. • Interest is counted as asset or as above • Once a person stops working: • Monthly, arbitrary distribution of fund or annual distributions counted as income. (Once paying on a regular basis, no longer income)

  50. Review of Pension / 401K funds EXCEPTIONS IRS QDROS issue Fed / State retirees

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