Liz Bramlet Consulting’s Fall Training Calendar

Change 4 to the 4350.3 HUD Handbook for LIHTC Projects

At long last, HUD has issued Change 4 to the 4350.3 Handbook.  HUD is making numerous changes to and providing clarification of many of its policies, but only a portion apply to the compliance requirements of the low income housing tax credit (LIHTC) program.  Through this 90 minute interactive webinar, hear about the big change HUD has made regarding the treatment of foster children and foster adults.  Learn what HUD is saying about verification requirements.  And, yes, HUD addresses the confusion about how owners and managers should treat an investment vehicle when calculating annual income for a resident who has begun to receive periodic payments through that investment.  And, let’s talk about VAWA.  We will discuss some tips for LIHTC owners about how to comply with VAWA from recent HUD guidance.

New Topic:  Legally married gay couples qualify for the married exemption under the student rule.

Date:  Thursday, September 12, 2013

Time:  1:00 PM – 2:30 PM, Eastern Time

 

Resyndicating an Existing LIHTC Project

Owners are resyndicating older LIHTC projects.  But when they do, what rules apply?  Is there a new credit and compliance period?  What income limits apply, and how much rent may the owner charge?  And what happens with the existing residents?  What does the owner do with a resident who originally qualified for the LIHTC program but is now over-income?  Do the rules differ for the oldest of LIHTC projects where the original owner never agreed to an extended use period?  Find out the answers to these and other questions by participating in this 2-hour interactive seminar on resyndicating existing LIHTC projects. 

The webinar is a 2-hour discussion of the rules that apply when an owner resyndicates an existing LIHTC project.  Bring your questions about a project you are resyndicating to class. 

Resyndicating an Existing LIHTC Project is an intermediate level course.  It is assumed that anyone registering already has a working knowledge of the LIHTC program.   

Date:  Tuesday, September 24, 2013

Time:  12:00 PM – 2:00 PM, Eastern Time

Planning the Lease-Up for Your LIHTC Project Webinar

 Sold Out!

 Are you responsible for planning the lease-up for an LIHTC project?  Do you know how to strategize your project’s lease-up so it produces the LIHTC as expected and when promised to the investors?  If you answered yes to either question, this class is for you.   Learn how to plan the lease-up for new construction or an acquisition/rehab project.  Develop an understanding of how to apply the rules for the LIHTC program when planning to lease-up a bond-financed property or when you are resyndicating an existing LIHTC community. 

Date:  Tuesday, October 15, 2013

Time:  12:00 PM – 4:00 PM, Eastern Time

Maximizing Your Acquisition/Rehab LIHTC Project NYC

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, October 24, 2013 at the Downtown Conference Center

Time:  9:00 AM – 4:30 PM, Eastern Time

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®.

Managing a HOME/LIHTC Project

This webinar has been updated to reflect the changes implemented through the new final rule for the HOME program issued by HUD in July 2013. 

More than one-half of the LIHTC projects nationwide have HOME funding. Owners and managers must know how to plan and operate these projects so they comply with the requirements of the HOME program while also meeting their investors’ goals and producing the maximum possible tax credit. This interactive webinar addresses the intricacies involved in managing a HOME/LIHTC project. Managing a HOME/LIHTC Project discusses how to place your HOME and LIHTC units, blending the eligibility requirements for the HOME and LIHTC programs, how much rent you may charge for a HOME/LIHTC unit, the impact of Section 8 rental assistance at a HOME/LIHTC project, maintaining compliance through the HOME period of affordability and LIHTC compliance period, and the impact of tax-exempt bond financing. 

Managing a HOME/LIHTC Project is an intermediate level class.  It is assumed that someone registering for this class has a working understanding of the LIHTC program.

 Date:  Tuesday, November 12, 2013

 Time:  12:00 Noon – 4:00 PM, Eastern Time

Email support@lbctrainingcenter.com to receive our Course Catalog

•  To learn about all the designations we offer professionals in the affordable housing industry, click on: http://stores.lbctrainingcenter.com/-strse-Certification-Exam/Categories.bok
•  To review our current training calendar, click on: http://stores.lbctrainingcenter.com/-strse-Current-Calendar/Categories.bok
•  Sign up for our free list service by clicking on LIST SERVICE.

Married Same Sex Couples Qualify Under the LIHTC Student Rule

Earlier this afternoon, Grace Robertson of the IRS notified the LIHTC industry that legally married same-sex couples qualify for the married student exemption under the student rule.  She shared Revenue Ruling 2013-17, and provided guidance on how it applies within the LIHTC program.

I have pasted the guidance from Grace below.  You can download Revenue Ruling 2013 – 17 at http://www.irs.gov/pub/irs-drop/rr-13-17.pdf. 

On August 29^th, the IRS and Treasury released Revenue Ruling 2013-17, providing guidance for the treatment of same-sex marriages. (Copy attached.) To summarize, for Federal tax purposes:

1. the terms “spouse,” “husband and wife,” “husband,” and “wife” include an individual married to a person of the same sex if the individuals are lawfully married under state law, and the term “marriage” includes such a marriage between individuals of the same sex.

 2. the Service adopts a general rule recognizing a marriage of same-sex individuals that was validly entered into in a state whose laws authorize the marriage of two individuals of the same sex even if the married couple is domiciled in a state that does not recognize the validity of same-sex marriages.

 3. the terms “spouse,” “husband and wife,” “husband,” and “wife” do not include individuals (whether of the opposite sex or the same sex) who have entered into a registered domestic partnership, civil union, or other similar formal relationship recognized under state law that is not denominated as a marriage under the laws of that state, and the term “marriage” does not include such formal relationships.

Application

Revenue Ruling 2013-17 will be applied prospectively as of September 16, 2013. Except for specific instances described in the ruling, affected taxpayers also may rely on this revenue ruling for the purpose of filing original returns, amended returns, adjusted returns, or claims for credit or refund for any overpayment of tax resulting from these holdings, provided the applicable limitations period for filing such claim has not expired. 

Specific to IRC §42 and 100% full-time student households, the exception under IRC §42(i)(3)(D)(ii)(II) for students who are married and can file a joint return applies to married same-sex couples as described in #2 above. Further, the exception can be applied retroactively to same-sex couples currently occupying low-income units.  For example, if a same-sex married couple is in the process of being evicted because they are both full-time students and were determined to be ineligible for the exception, then the exception is applied retroactively and the couple does not violate the requirement that a unit not be occupied entirely by full-time students.

 Email support@lbctrainingcenter.com to receive our Course Catalog. 

To review our current training calendar, click on: http://stores.lbctrainingcenter.com/-strse-Current-Calendar/Categories.bok.

• Send an email to support@lbctrainingcenter.com to request a proposal for Liz to provide training for your company or association.
• Sign up for our free list service by clicking on LIST SERVICE.

The LIHTC Program and Gay Marriage – A Follow Up

In my last post I suggested that everyone stay tuned as guidance might change on how gay couples are to be treated within the low income housing tax credit (LIHTC) program.  I had no idea that the guidance might be changing so soon.  The IRS is issuing a revenue ruling recognizing legally married gay couples for federal tax purposes.  We await instruction as to what this means for the LIHTC program, and specifically, for the implementation of the student rule.

Again, stay tuned … 

 Email support@lbctrainingcenter.com to receive our Course Catalog. 

To review our current training calendar, click on: http://stores.lbctrainingcenter.com/-strse-Current-Calendar/Categories.bok.

• Send an email to support@lbctrainingcenter.com to request a proposal for Liz to provide training for your company or association.
• Sign up for our free list service by clicking on LIST SERVICE.

 

The LIHTC Program and Gay Marriage

On Tuesday, August 27, 2013, Grace Robertson of the IRS published the most recent issue of her very helpful LIHC Newsletter.   Grace answers questions people have throughout the industry, and she addresses topics that are hot on peoples’ minds.  In her August issue, she addressed the subject of gay marriage and the LIHTC student rule in light of the Supreme Court’s decision that struck down a portion of the Defense of Marriage Act (DOMA). 

Grace hit on an extremely timely topic.  I have received questions from numerous clients asking if a gay couple, who is married under state law, can be found eligible for the LIHTC program under the exception in the student rule that allows married couples to qualify, even if every household member attends school full-time.  I have pasted Grace’s article in its entirety below.  You will see that she is instructing the industry that based on current law, the exception that allows married couples to qualify under the student rule still applies only to couples of the opposite sex.  This is an evolving issue, not just in our industry, but in society as a whole, so stay tuned as this guidance may change over time.

I have also provided instructions on how to sign up for Grace’s LIHC Newsletter.

Exception for Married Students

As explained in the legislative history, “In no case is a unit considered to be occupied by low-income individuals if all of the occupants of such unit are students (as determined under IRC §151(c)(4)), no one of whom is entitled to file a joint income tax return.”

While the rule itself is not explicitly included in IRC §42, exceptions for certain 100% full-time student households are specified in IRC §42(i)(3)(D), and includes an exception for full-times students if the students are married and file a joint return.

The Supreme Court recently ruled that a portion of the Defense of Marriage Act is unconstitutional and held that persons of the same sex who are legally married under State law may not be deprived of Federal benefits that are provided to married couples of the opposite sex.

So, how is the exception for married students applied? Registered domestic partners and same-sex partners who are legally married under state law cannot file federal tax returns as “married filing separately” or “married filing jointly” because federal law does not treat same sex partners as married for federal tax purposes. Therefore, the rule continues to be applied only for couples of the opposite sex. Please refer to the Guide for Completing Form 8823, Chapter 17, for additional guidance.

Also, the IRS and Treasury released their joint 2013-2014 priority guidance Plan (Doc 2013-19471) on August 9, 2013. The plan includes providing guidance on the Supreme Court’s decision that Section 3 of the Defense of Marriage Act was unconstitutional. The reference for the case is United States v. Windsor, Sup. Ct. Dkt. No. 12-307 (2013) (Doc 2013-15479).

 Subscribing to the LIHC Newsletter

The LIHC Newsletter is distributed free of charge through e-mail. If you would like to subscribe, just contact Grace at Grace.F.Robertson@irs.gov. Also designate whether you would like to receive the Adobe pdf version or the Word document.

 Email support@lbctrainingcenter.com to receive our Course Catalog.

• To review our current training calendar, click on: http://stores.lbctrainingcenter.com/-strse-Current-Calendar/Categories.bok
• Sign up for our free list service by clicking on LIST SERVICE.

Managing a HOME/LIHTC Project

Managing a HOME/LIHTC Project

This webinar has been updated to reflect the changes implemented through the new final rule for the HOME program issued by HUD in July 2013. 

More than one-half of the LIHTC projects nationwide have HOME funding. Owners and managers must know how to plan and operate these projects so they comply with the requirements of the HOME program while also meeting their investors’ goals and producing the maximum possible tax credit. This interactive webinar addresses the intricacies involved in managing a HOME/LIHTC project. Managing a HOME/LIHTC Project discusses how to place your HOME and LIHTC units, blending the eligibility requirements for the HOME and LIHTC programs, how much rent you may charge for a HOME/LIHTC unit, the impact of Section 8 rental assistance at a HOME/LIHTC project, maintaining compliance through the HOME period of affordability and LIHTC compliance period, and the impact of tax-exempt bond financing. 

Managing a HOME/LIHTC Project is an intermediate level class.  It is assumed that someone registering for this class has a working understanding of the LIHTC program.

Date:  Tuesday, November 12, 2013

Time:  12:00 Noon – 4:00 PM, Eastern Time

 Webinar Agenda

PART 1 – ELIGIBILITY ISSUES AT HOME/LIHTC PROJECTS

– Minimum Set Aside

– Income Limits

– 4 Ways to Mix HOME with LIHTC before July 30, 2008

– Post July 2008 HOME Properties

– Verifications

– Assets not Exceeding $5,000

– Forms

– Fair Housing and Section 504

PART 2 – MAXIMUM ALLOWABLE RENT

– Maximum Allowable Rent

– Impact of Section 8 Rental Assistance

– Utility Allowances

– Rent Increases

– Rent Decreases/Rent Floors

PART 3 – ONGOING COMPLIANCE

– Leasing Requirements

– Tax Credit Compliance Period

– HOME Period of Affordability

– Annual Recertifications

– Fixed & Floating Units

– Available Unit Rule

– Transfers

– Annual Owner Reporting

PART 4 – PRIVATE ACTIVITY BONDS

– Private Activity Bond/LIHTC Projects

– Minimum Set Aside

– Income Limits

– Maximum Allowable Rents

– Full Time Students

– Available Unit Rule

– Regulatory Agreement

PART 5 – WRAP UP WITH QUESTIONS

 Email support@lbctrainingcenter.com to receive our Course Catalog. 

To review our current training calendar, click on: http://stores.lbctrainingcenter.com/-strse-Current-Calendar/Categories.bok

• Send an email to support@lbctrainingcenter.com to request a proposal for Liz to provide training for your company or association
• Sign up for our free list service by clicking on LIST SERVICE.

Change 4 To The 4350.3 HUD Handbook for LIHTC Projects

Change 4 to the 4350.3 HUD Handbook for LIHTC Projects

At long last, HUD has issued Change 4 to the 4350.3 Handbook.  HUD is making changes to and providing clarification of many of its policies, but only a portion apply to the compliance requirements of the low income housing tax credit (LIHTC) program.  Through this 90 minute interactive webinar, hear about the big change HUD has made regarding the treatment of foster children and foster adults.  Learn what HUD is saying about verification requirements.  And, yes, HUD addresses the confusion about how owners and managers should treat an investment vehicle when calculating annual income for a resident who has begun to receive periodic payments through that investment.  And, let’s talk about VAWA.  We will discuss some tips for LIHTC owners about how to comply with VAWA from recent HUD guidance.

Date:  Thursday, September 12, 2013

Time:  1:00 PM – 2:30 PM, Eastern Time

All those who register for the webinar will receive an email on or before September 11th with the information necessary to access the training.  We will attach the Power Point created for the webinar for you to use to take notes during the presentation. 

Topics Covered in Change 4 for LIHTC Projects

• New Policy on How to Treat Foster Children/Adults
• Verification and Documentation Requirements
• Treatment of Investments Producing Periodic Payments
• Let’s Talk About VAWA
• Wrap Up With Questions

Email support@lbctrainingcenter.com to receive our Course Catalog.

To review our current training calendar, click on: http://stores.lbctrainingcenter.com/-strse-Current-Calendar/Categories.bok

•  Send an email to support@lbctrainingcenter.com to request a proposal for Liz to provide training for your company or association
•  Sign up for our free list service by clicking on LIST SERVICE.

Maximizing Your Acquisition/Rehab LIHTC Project NYC

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.

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

Located in New York City’s Financial District at William and Ann

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

Email support@lbctrainingcenter.com to receive our Course Catalog.

•  To review our current training calendar, click on: http://stores.lbctrainingcenter.com/-strse-Current-Calendar/Categories.bok
•  Send an email to support@lbctrainingcenter.com to request a proposal for Liz to provide training for your company or association
• Send an email to housingnews@aweber.com to register for our free list service.

Resyndicating An Existing LIHTC Project

Resyndicating an Existing LIHTC Project

Owners are resyndicating older LIHTC projects.  But when they do, what rules apply?  Is there a new credit and compliance period?  What income limits apply, and how much rent may the owner charge?  And what happens with the existing residents?  What does the owner do with a resident who originally qualified for the LIHTC program but is now over-income?  Do the rules differ for the oldest of LIHTC projects where the original owner never agreed to an extended use period?  Find out the answers to these and other questions by participating in this 2-hour interactive seminar on resyndicating existing LIHTC projects. 

The webinar is a 2-hour discussion of the rules that apply when an owner resyndicates an existing LIHTC project.  Bring your questions about a project you are resyndicating to class. 

Resyndicating an Existing LIHTC Project is an intermediate level course.  It is assumed that anyone registering already has a working knowledge of the LIHTC program.    

Tuesday, September 24, 2013 12:00 – 2:00 PM, Eastern Time

Webinar Agenda

Part One – IRS Guidance on Resyndication

– Chapter Four of the 8823 Audit Guide

– IRS Guidance on Resyndicating an LIHTC Project

– Possible Changes to IRS Guidance

– Resyndication by the Original Owner

– Resyndication by a New Owner

Part Two – Planning for Resyndication

– Plan to Review the Existing Resident Files

– Plan to Confer with the HFA and the New Syndicator

– Continue to Follow All LIHTC Compliance Rules

– Plan to Meet Any Laws Governing Resident Relocation

– Plan to Implement Any Required Rent Changes

– Plan to Develop Tracking Mechanism if Relocating Residents

– Plan to Meet Any Local Laws

– Plan to Meet With the Residents

Part Three – Rents and Income Limits

– Remember Those Hold Harmless Rules Allowed Under HERA

– Possible Rent Decreases and The Rent Floor

Part Four – Reviewing the Resident Files

– What Makes a Good TIC?

– The Student Rule

– Household Composition

    Part 5 – Wrap Up with Questions

Email support@lbctrainingcenter.com to receive our Course Catalog.

•  To review our current training calendar, click on: Current Calendar. 
•  Send an email to support@lbctrainingcenter.com if you would like a proposal for Liz to provide training for your company or association. 
• Sign up for our free list service by clicking on LIST SERVICE.

Liz Bramlet Consulting’s Fall Training Calendar

Resyndicating an Existing LIHTC Project

Owners are resyndicating older LIHTC projects.  But when they do, what rules apply?  Is there a new credit and compliance period?  What income limits apply, and how much rent may the owner charge?  And what happens with the existing residents?  What does the owner do with a resident who originally qualified for the LIHTC program but is now over-income?  Do the rules differ for the oldest of LIHTC projects where the original owner never agreed to an extended use period?  Find out the answers to these and other questions by participating in this 2-hour interactive seminar on resyndicating existing LIHTC projects. 

The webinar is a 2-hour discussion of the rules that apply when an owner resyndicates an existing LIHTC project.  Bring your questions about a project you are resyndicating to class. 

Resyndicating an Existing LIHTC Project is an intermediate level course.  It is assumed that anyone registering already has a working knowledge of the LIHTC program.   

Tuesday, September 24, 2013 12:00 – 2:00 PM, Eastern Time

Planning the Lease-Up for Your LIHTC Project

Are you responsible for planning the lease-up for an LIHTC project?  Do you know how to strategize your project’s lease-up so it produces the LIHTC as expected and when promised to the investors?  If you answered yes to either question, this class is for you.   Learn how to plan the lease-up for new construction or an acquisition/rehab project.  Develop an understanding of how to apply the rules for the LIHTC program when planning to lease-up a bond-financed property or when you are resyndicating an existing LIHTC community. 

Planning the Lease-Up for Your LIHTC Project is an intermediate level class.  We assume a participant has a working understanding of the LIHTC program.

Tuesday, October 15, 2013 at 12:00 Noon, Eastern Time

Maximizing Your Acquisition/Rehab LIHTC Project NYC

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, October 24, 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®.

Email support@lbctrainingcenter.com to receive our Course Catalog

•  To learn about all the designations we offer professionals in the affordable housing industry, click on: http://stores.lbctrainingcenter.com/-strse-Certification-Exam/Categories.bok
•  To review our current training calendar, click on: http://stores.lbctrainingcenter.com/-strse-Current-Calendar/Categories.bok
•  Sign up for our free list service by clicking on LIST SERVICE.

HUD Announces 2014 Proposed FMRs

On Monday, August 5, 2013, the Department of Housing and Urban Development (HUD) announced the proposed fair market rents (FMRs) for fiscal year 2014.  The level at which HUD sets these rents is important to most owners who operate in the affordable housing industry.  They are used to establish the maximum rent a public housing authority can subsidize through the housing choice voucher program.  They also serve as a cap on the rents an owner may collect for their HOME units.

You have 30 days to comment on the proposed FMRs.  HUD provides instruction on how to submit a comment both manually and electronically.  You can read the entire notice by clicking on FAIR MARKET RENTS 2014.

Email support@lbctrainingcenter.com to receive our Course Catalog.

• To review our current training calendar, click on: http://stores.lbctrainingcenter.com/-strse-Current-Calendar/Categories.bok
• Send an email to housingnews@aweber.com to register for our free list service.