Archive for the ‘Bond Financed LIHTC Projects’ Category

Does Your Organization Need Customized Training?

June 4, 2014

Does your organization need training that is both economical and efficient?  Do you need an experienced Trainer to address specific topics for your employees?  Does your staff need to go to training, but the travel costs involved overwhelm your budget?  If you answered YES to any of these questions, a webinar may be the answer for you.  We offer our scheduled webinars, but frequently present the same training for clients who want a session just for themselves.  It allows us to target material most important to the client, and the participants are free to talk with each other about targeted issues and projects within their organization.

A webinar can last anywhere between 30 minutes to 4 hours.  The cost depends on the length of the webinar and the number of participants.  The bigger your group, the more bang you get for your buck.

Send an email to support@lbctrainingcenter.com to receive a proposal for Liz to present a webinar for your organization.  Ask to receive our current Course Catalog, but don’t be shy about asking that any of our seminars be adapted to fit your needs.

There is still time to register for our June webinar –

Applying Acquisition/Rehab Rules When Resyndicating an LIHTC Project – 1:00 PM Eastern Timeon Tuesday, June 10th.  This 4-hour webinar (with 15 minute break) costs $285 per person.

Acquisition/rehab LIHTC projects are known to be more complicated to develop and to operate than those created as new construction.  This is particularly true with residents already in place. When taking an older LIHTC project through resyndication, the owner and property manager must understand how to apply the rules governing acquisition/rehab projects in addition to those required to initiate the credit stream for a new credit allocation.   Applying Acquisition/Rehab Rules When Resyndicating an LIHTC Project is for anyone involved in the resyndication of an existing LIHTC project.

Applying Acquisition/Rehab Rules When Resyndicating an LIHTC Project is an advanced level class.  It is assumed that a participant has a strong understanding of the LIHTC program.  It will last approximately 4 hours, including a 15-minute break.

Go to Ac/Rehab When Resyndicating to read the full agenda and to register for this often requested training.

Email train4lal@gmail.com for our Course Catalog

Applying Ac/Rehab Rules When Resyndicating an LIHTC Project

May 19, 2014

Register for Our June Webinar

Applying Acquisition/Rehab Rules When

Resyndicating an LIHTC Project

Acquisition/rehab LIHTC projects are known to be more complicated to develop and to operate than those created as new construction.  This is particularly true with residents already in place. When taking an older LIHTC project through resyndication, the owner and property manager must understand how to apply the rules governing acquisition/rehab projects in addition to those required to initiate the credit stream for a new credit allocation.   Applying Acquisition/Rehab Rules When Resyndicating an LIHTC Project is for anyone involved in the resyndication of an existing LIHTC project.

Applying Acquisition/Rehab Rules When Resyndicating an LIHTC Project is an advanced level class.  It is assumed that a participant has a strong understanding of the LIHTC program.  It will last approximately 4 hours, including a 15-minute break.

When – 1:00 PM Eastern Time on Tuesday, June 10, 2014

Go to Ac/Rehab When Resyndicating to read the full agenda and to register for this often requested training.

Go to Current Calendar to view all classes currently on our calendar.

 Email train4lal@gmail.com for our Course Catalog

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Announcing Three New Webinars

April 24, 2014

Save the dates!  This summer we are offering training through 3 brand new webinars.

 

  • Applying Acquisition/Rehab Rules When Resyndicating an LIHTC Project – 1:00 PM Eastern Timeon Tuesday, June 10th.  This 4-hour webinar (with 15 minute break) will cost $285 per person.

 

  • What LIHTC Developers and Managers Must Know About the New HOME Final Rule – 1:00 PM Eastern Timeon Tuesday, July 8th.  This 3-hour webinar (with 15 minute break) will cost $245 per person.

 

  • Proactive Strategies for Troubled LIHTC Projects – 1:00 PM Eastern Time on Tuesday, August 5th.  This 2-hour webinar will cost $195 per person.

We will announce open registration soon!

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Guest Blog on the Importance of Fair Housing Training

January 21, 2014

Hello Everyone,

Below you will find an article written by guest blogger, Ron Leshnower.  Ron is an attorney and an expert in fair housing law.  He provides advice to clients around the country and conducts training on fair housing for private clients and at public conferences.  You will find his contact information at the end of this piece.  You will find it worth the read.

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Debunking the Myths Surrounding the Importance of Fair Housing Training

Many owners and managers of multifamily apartment buildings operate in the dark when it comes to understanding their responsibilities under the Fair Housing Act. This may seem surprising, given that compliance is so important and training is so affordable.

But a lack of training is often attributed to a belief in one or more myths surrounding its importance. As a result, even housing providers with the best intentions unwittingly subject themselves to a high risk of fair housing liability at their properties.

Here are six common fair housing training myths, debunked. If you’ve been putting off fair housing training, you may find one or more of these myths familiar.

Myth #1: There’s not much at stake.

Property owners and managers actually have much at stake when it comes to fair housing compliance. In addition to an order to pay damages and attorney’s fees, a HUD administrative law judge may assess a civil penalty of up to $16,000 for the first offense, and up to $65,000 for a third violation in seven years. In more egregious instances of discrimination, a court can impose punitive damages. Aside from financial concerns, a fair housing complaint puts a business’ reputation at risk. As a case wears on, negative press coverage could discourage good tenants from applying for an apartment at a community, hurting the owner’s bottom line.

Myth #2: There’s nothing to worry about as long as you remain committed to treating people fairly.

Some people think that fair housing law is merely a codification of the notion of equal treatment and so, they reason, if they keep this guiding principle in mind, then their statements, actions, policies, and procedures will naturally fall on the right side of the law. But much of fair housing law isn’t obvious, and so professionals who rely on good intentions put themselves at risk.

Myth #3: There’s not much to know.

Many apartment professionals are surprised to discover just how much there is to learn to stay on top of fair housing compliance, particularly in the areas of disability and familial status. If you’re new to fair housing training, you should expect to learn a range of useful, risk-reducing practices for complying with the law while gaining a clear understanding of what you can do to protect yourself against a potential lawsuit.

Myth #4: You can always take corrective action to make a fair housing problem go away.

More often than not, it’s impractical to undo violations, especially after they’ve caused harm. For this reason, it’s much more efficient to be proactive. Instead of just responding to problems as they arise, a proactive approach empowers you to prevent costly violations from occurring in the first place. Plus, property owners and managers who are confident in their fair housing knowledge are less anxious about violations and able to focus more of their energy on maintaining good tenant relations and growing their business.

Myth #5: Tenants aren’t sophisticated about fair housing laws, so they’re not likely to bring a complaint.

Many tenants and apartment hunters who believe they were treated unfairly choose to bring a complaint against their landlord or property manager, even if it turns out the law isn’t on their side. According to data compiled by the National Fair Housing Alliance, nearly 30,000 fair housing complaints were investigated in 2012. This number is likely to rise going forward, in part because of improving technology. For example, people who wish to file a fair housing complaint with HUD (at no cost and without the need to hire an attorney) may do so through HUD’s Web site or even using HUD’s new app.

Myth #6: I’m learning enough about fair housing through my affordable housing training.

If your building participates in an affordable housing program, chances are you’re attending training to learn the ins and outs of that program’s requirements. As part of that training, you might learn special fair housing requirements particular to the program. But it’s also essential to get familiar with the full set of responsibilities that housing professionals have under the Fair Housing Act, independent of any affordable housing program.

Ron Leshnower is an attorney and author, and the president of FairHousingHelper.com. You can follow him on Twitter at www.twitter.com/fairhousing.

Update on Change 4 to the HUD Handbook

January 7, 2014

On November 27, 2013 HUD issued a revised transmittal for Change 4 to the 4350.3 Handbook.  They originally issued Change 4 back in August and its effective date remains August 7, 2013.  In the revised transmittal, however, HUD gave owners longer to implement Change 4.  Specifically, HUD extended the deadline to March 1, 2014 to implement those changes that require a modification to their TRACS software.

Since the LIHTC program does not require owners to transmit information on their residents through TRACS, there is no reason to not implement Change 4 when processing initial certifications and recertifications for LIHTC residents.  In fact, in her most recent LIHTC Newsletter, Grace Robertson of the IRS explains the impact on the LIHTC program resulting from the changes found in Chapter 5 of the handbook.  Of particular interest, Grace describes how the IRS views the information found in Paragraph 5-6 on deferred disability payments received from the Veterans Administration.  Grace provides us guidance through a helpful Q & A format.

“Q3: Paragraph 5-6, Q-3, has been added to the Handbook (page 5-20) and specifies that for section 8 tenants only, any deferred disability benefits from the Department of Veterans Affairs (VA) that are received in a lump sum or in prospective monthly amounts are excluded from annual income. Should deferred disability benefits from the VA be excluded for all households for IRC §42 purposes, or just households receiving section 8 assistance?

A3: The exception applies only to tenants receiving section 8 assistance. If the exception does not apply, the lump sum deferred payments are counted as an asset. If the lump sum payment was caused by delays in processing periodic payments, then the lump sum payment is included in income.”

The IRS approach is comparable to that applied to student financial assistance.  Since the handbook states that student financial assistance a resident receives in excess of what they need to pay tuition is included, but only for residents who receive Section 8 rental assistance, the financial aid is included in the annual income for LIHTC residents only if they also participate in the Section 8 program.

You can read all of Grace’s guidance by clicking on LIHTC Newsletter.

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Income Limit Webinar for LIHTC and Tax-Exempt Bond Programs

January 6, 2014

Income Limits and Rents in the LIHTC Program

HUD issued the 2014 income limits on December 18, 2013.  Do you know how and when to implement your new limits?  HUD elected to stop holding its income limits harmless in 2010. What does this mean for the LIHTC program and for new and existing LIHTC and tax-exempt bond projects? How does the Housing and Economic Recovery Act of 2008 protect the LIHTC program from the full impact of HUD’s decision now and in the future? Does the rule governing the rent floor in the LIHTC program remain relevant? How about mixed-finance projects? What do the new rules mean for projects with project-based Section 8 or Section 236 mortgage insurance? What does it all mean for public housing projects with LIHTC?
The webinar is a 90 minute discussion of how owners determine their income limits and maximum allowable rents at LIHTC and/or bond-financed projects.  Bring your income limits, rents and your questions to class.

Income Limits and Rents in the LIHTC & Tax-Exempt Bond Programs is a beginner to intermediate level course.  Everyone who is new to the LIHTC and bond programs must learn how to determine the income limits and rents for their projects.  Practitioners with years of experience must insure they understand how the rules governing rents and income limits have changed in recent years.

Thursday, January 9, 2014 1:00 – 2:30 PM, Eastern Time

Class Agenda

Part One – Income Limits in the LIHTC and Tax-Exempt Bond Programs

– Changes to HUD’s Hold Harmless Policies

– Impacted VS Non-Impacted Projects

– Existing VS New Projects

– Key Dates For Selecting Your Income Limits

– Special Reminders for Owners Who Deep Rent Skew

– Special Issues for Projects With Multiple Income Limits

Part Two – Maximum Allowable Rents In LIHTC and Bond-Financed Projects

– Basic Rules for Calculating Maximum Allowable Rents

– Impacted VS Non-Impacted Projects

– Existing VS New Projects

– Special Rules for Owners Who Elect to Deep Rent Skew

– Maximum Rents in the Tax-Exempt Bond Program

– Special Issues for Owners With Multiple Rent Limits

– Applying the Current Rules Governing the Rent Floor

– Don’t Forget Your Utility Allowance

Part Three – Mixed Financed LIHTC Projects

– Income Limits in Section 8/LIHTC Projects

– Income Limits in Section 236/LIHTC Projects

– Income Limits in Public Housing/LIHTC Projects

– Impact of Decreasing Section 8 Income Limits

Part Four – Wrap Up with Questions

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IRS Issues Draft Audit Technique Guide

January 2, 2014

On December 19, 2013, the IRS issued a draft audit technique guide (ATG) for the Low-Income Housing Tax Credit program. It provides guidance for IRS examiners who audit taxpayers owning LIHTC properties. It was last updated in 1999. The IRS is accepting comments on the draft until March 28, 2014. You can find instructions for submitting comments on page ii of the draft ATG.

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Maximizing Your Acquisition/Rehab Project – NYC

November 7, 2013

The same rules apply to LIHTC projects a developer buys and rehabs as to those they build from scratch. But acquisition/rehab projects are more complicated to take through the allocation process and to place in service because there are more moving parts in play, all of which can impact the value of the tax credits. Unique in the marketplace, Maximizing Your Acquisition/Rehab LIHTC Project provides guidance for developers, syndicators, asset managers, property managers and LIHTC agency officials on how to manage and track all those moving parts, including the existing residents, so that a project produces its maximum tax credit.  

Maximizing Your Acquisition/Rehab LIHTC Project is an advanced level class on the LIHTC program.  It is assumed that someone registering for this class has a strong understanding of the LIHTC program, and is comfortable applying its rules for both development and compliance in order to learn how an acquisition/rehab project produces its maximum possible credit.

Bring a calculator to class.

DATE: Thursday, November 21, 2013 at the Downtown Conference Center

Demonstrate your knowledge by taking the exam to become a certified Acquisition Rehab Expert (ARE®).  We recommend taking the exam soon after you participate in the seminar as the surest way to insure your success.  Register to take the exam by clicking on ARE®.

Seminar Agenda

Part 1 – Introduction to Acquisition/Rehab Projects

– IRS guidance on acquisition/rehab LIHTC projects

– PIS dates, the minimum set aside and the credit allocation

– The first year averaging convention and the two-thirds rule

– LIHTC income limits, available unit, vacant and transfer rules

– Significance of the 8609 form

– Development/management coordination

– Case Study Part One

Part 2 – Acquisition/Rehab With Existing Residents

– Completing the rehabilitation the year of acquisition

– Completing the rehabilitation the year following acquisition

– The Safe Harbor Rule

– Leasing requirements

– Successful resident files

– Case Study Part Two

Part 3 – Resident Relocation Issues

– Residents rights

– Relocating a resident within the same project

– Relocating a resident to a different project

– Relocating residents between buildings with different PIS dates

– Relocating residents when the owner deep rent skews

– Relocating residents off the project

– Tracking relocation activities

– Case Study Part Three

Part 4 – Special Situations

– Rehabilitating empty buildings

– Rehabilitation credits only

– Bond-financed LIHTC projects

– Ac/ rehab for HUD multifamily and public housing projects

– HOME funded projects and projects with state/local funding

– Housing choice voucher program participants

– Resyndicating existing LIHTC projects

– Placing credits in service during the15-year compliance period

– Case Study Part Four

Part 5 – Wrap Up With Questions

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Possible Change to Change 4 of the Handbook

September 19, 2013

On August 7, 2013, the Department of Housing and Urban Development (HUD) issued Change 4 to their 4350.3 Handbook.  The transmittal letter stated that Change 4 was effective immediately upon its release.  Now, word around the water cooler is that HUD may issue a new transmittal announcing a later implementation date for Change 4.  You may be asking why HUD would issue a change to its handbook and state that it was effective immediately, and then find the need to issue a second transmittal announcing a later implementation date.  HUD realized that they need to address the ability of its assisted projects to implement Change 4 electronically.

The projects for which HUD writes the handbook, e.g., those with a project-based Section 8 contract, Section 236 mortgage insurance, a loan or grant through the Section 202 and 811 programs, etc…, must submit all of their initial certifications, recertifications, transfers, etc… to HUD electronically through a system generally referred to as TRACS.  However, the version of TRACS currently in use will not allow owners to implement Change 4.  For example, HUD tells owners to include foster children and foster adults in an applicant’s household size when determining their income limit.  At this time, however, TRACS will not allow owners to include a foster child or adult in a household’s income limit.  The HUD Form 50059 (comparable to an LIHTC TIC) will not print an income limit for an applicant that takes into account a foster child or foster adult. 

This issue is not relevant, strictly speaking, to the LIHTC program because owners are not required to submit information on their residents to the federal government through TRACS.  However, there are state and local housing finance agencies that have established their own electronic systems to receive initial certifications and recertifications from projects in their LIHTC portfolio.  Owners in these states will need to confer with their monitoring agencies on when the relevant updates will be made to their electronic systems. 

At this point we do not know for certain that HUD will issue a new transmittal letter, or when they plan to do so.  We do not know what the IRS will say about when LIHTC owners will be required to implement Change 4 if HUD announces a later implementation date.  Also, we need to determine if there will be an impact from policies included in Change 4 on the LIHTC program’s tenant data collection requirements?  Stay tuned. 

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More On Preserving The LIHTC Program

September 6, 2013

We have been discussing the need for everyone to chip in to help preserve the low income housing tax credit (LIHTC) program.  On Thursday, September 5th, U.S. News and World Report published an article written by Robert Dietz on the benefits of the low income housing tax credit (LIHTC) program.   The name of the article is A Win-Win-Win for Affordable Housing.  Mr. Dietz describes the tremendous need for affordable housing across the country, how the LIHTC program works to create and preserve affordable units, and its many economic benefits to our industry and for society as a whole.  Share this with others, including your elected representatives, to insure the LIHTC program is preserved and enhanced through any tax bill enacted by Congress in the weeks and months ahead. 

You can read the article at http://www.usnews.com/opinion/blogs/economic-intelligence/2013/09/05/defending-a-tax-program-that-helps-provide-affordable-housing_print.html

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