Rhode Island Housing Updates WCMS/ HDS Updates Pilot program Technology
WCMS/HDS Updates New Requirements for CAPs NEW - Set Owner Income Designation and Owner Rent Designation on each LIHTC tenant/unit Training to be provided in Spring 2014
HUD's Physical Inspection Alignment Pilot Program (Pilot Program) Partnership with HUD, the IRS and Rural Development Meets the criteria of all three agencies Satisfies the UPCS inspection requirements for the Low Income Housing Tax Credit Housing (LIHTC) program Sample will be drawn from the entire project All agencies involved will utilize the inspection results REAC inspection results will determine if further action is required
Pilot Program (continued) What this means for RI Housing: Use of technology More scrutiny – 8823 ?
Pilot Program (continued) What this means for you: Reduced administrative and tenant burden No more duplicate inspections R I Housing may inspect all vacant units RI Housing will conduct a “look around” Health and Safety (EH& S) items will be noted More 8823s
Non-compliance 8823 When noncompliance is identified Rhode Island Housing is required to notify the Internal Revenue Service using Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition. Findings worthy of an 8823 include (but not limited to): -Failed REAC inspection -Physical deficiencies, uncorrected EH&S -Fires -Fair Housing violations -Over income households -Full time students – not meeting an exemption
Students A “student” is an individual (regardless of age) who during any five calendar months of a calendar year (5 calendar months do not need to be consecutive) is a full-time student at an educational organization. - Educational organization is described in IR §170(b)(1)(A)(ii)
Students (continued) Full time or part time? Must be stated by the educational organization and is based on their criteria. Educational organization includes elementary, junior and senior high schools, colleges, universities, on-line universities, and technical, trade and mechanical schools. On-the-job training courses – not applicable
Students (continued) Households made up of all full-time students (regardless of age) do not qualify for the LIHTC program unless they meet one of the exceptions. There are five (5) exceptions to this rule and they are: 1.At least one individual is receiving assistance under Title IV of the Social Security Act (i.e.TANF); 2.At least one individual is enrolled in a job training program receiving assistance under the Workforce Investment Act or under other similar federal, state, or local laws; 3.Household consisting of a single parent and his/her dependents, where neither the single parent nor their children are dependents of another individual (other than a parent of such children); 4.Household consisting of persons who are married and eligible to file a joint tax return; 5.At least one individual was previously under the care of a state foster care program.
Students (continued) Remember the 5 month rule – any 5 months of a calendar year (5 months do not need to be consecutive.) Ensure your rental application form asks the student question and include the 5 month rule Determine student status at time of application Determine student status at time of move-in
Who's Who at Rhode Island Housing Divisions: Loan Servicing Development Resident Services
Loan Servicing Division Leslie McKnight, Director email@example.com@rhodeislandhousing.org 401-457- 1184 Michael DiChiaro, Assistant Director firstname.lastname@example.org@rhodeislandhousing.org 401-457-1274 Kathleen Millerick, Multifamily Compliance Supervisor email@example.com@rhodeislandhousing.org 401-457-1241 Kathleen Stewart, Multifamily Finance Supervisor firstname.lastname@example.org@rhodeislandhousing.org 401-457-1143 Susan Halloran, Multifamily Work Out Specialist & Quality Control Manager email@example.com@rhodeislandhousing.org401- 450-1339 Multifamily Compliance Specialists: Jamie Wolcott, firstname.lastname@example.org 401-450- email@example.com Dotty Valentini, firstname.lastname@example.org 401-457- email@example.com Glen Turner, firstname.lastname@example.org email@example.com Lynne Crowell, firstname.lastname@example.org email@example.com
Loan Servicing (continued) Loan Servicing - Responsible for the servicing of the Corporation’s single and multi-family loan portfolio. Loan servicing staff services a portfolio of more than 12,300 single family loans totaling more than 1.2 billion dollars. Provide customer service and mortgage counseling support to more than 8,100 Rhode Island homeowners. In 2007, Loan Servicing assumed responsibility for the purchase of municipal tax liens for residential owner-occupied properties. To date, we have assisted more than 1,800 homeowners facing the possible loss of their home from tax sale.
Loan Servicing (continued) Oversee the physical and financial condition of more than 20,000 affordable rental homes funded under the Low Income Housing Tax Credit program (LIHTC), The tax-exempt and taxable Bond programs, the Tax Credit Exchange Program (TCEP), the Tax Credit Assistance Program (TCAP), and the HUD Risk Share Program. Primary responsibilities include compliance with Federal, State, investor and insurer regulatory requirements. Multifamily compliance staff perform compliance reviews on more than 154 LIHTC projects and 12,000 LIHTC files and units. Multifamily financial staff services a portfolio of more than 500 multifamily loans totaling more than half a billion dollars.
Development Division Carol Ventura, Director firstname.lastname@example.org@rhodeislandhousing.org 401-457-1129 Anne Berman, Assistant Director email@example.com@rhodeislandhousing.org 401-457-1269 Paula Coleman, Assistant Director firstname.lastname@example.org@rhodeislandhousing.org 401-457-1134 Brenda Cianciolo, HOME Program Support Specialist email@example.com@rhodeislandhousing.org 401-450-1332 Edison Bedoya, HOME Program Support Specialist firstname.lastname@example.org@rhodeislandhousing.org 401-457-1102 Diane Benjamin, NOP, SHP, Thresholds Program Coordinator email@example.com 401-450-1347 firstname.lastname@example.org
Development (continued) Development - Responsible for the construction, rehabilitation and preservation of affordable rental housing. Administers the Rental Housing Production Program, which includes federal Housing Tax Credits, tax-exempt and taxable bonds and our own deferred-payment loans. Also the Tax Credit Assistance Program (TCAP) and the Tax Credit Exchange Program (TCEP). Oversees our Preservation Program and a pilot program that used Medicaid-waivers to create 200 apartments dedicated to assisted living. Responsible for administering federal programs including HOME, NOP, the Lead Hazard Reduction Program, and the Neighborhood Stabilization Program (NSP), SNRPE, SHP, and Thresholds. Monitors the construction or rehabilitation of affordable projects.
Resident Services Division Carlos Hernandez, Director email@example.com@rhodeislandhousing.org 401-457-1223 Gary Monroe, Operations Manager firstname.lastname@example.org email@example.com Vanessa Galarza, Section 8 Program Manager firstname.lastname@example.org 401-457-1157 email@example.com Joanne Curtis, Officer firstname.lastname@example.org@rhodeislandhousing.org 401-457-1117 Christine Smith, Officer email@example.com@rhodeislandhousing.org 401-450-1383
Resident Services (continued) Resident Services – A.K.A. – asset management, housing management, section 8, Carlos’s department – Responsible for monitoring the financial and physical condition of about 20,000 subsidized apartments. Rhode Island Housing – Resident Services Division - is the public housing authority for 15 Rhode Island cities and towns Administers the state’s Section 8 Housing Choice Vouchers program for these 15 municipalities, serving more than 1,400 low-income households. Administers the Family Self-Sufficiency Program (FSS) which provides up to five years of rental subsidies and supportive services to families that agree to obtain education or job training necessary to achieve independence.
Acronyms HCVP – Housing Choice Voucher Program HOME – not an acronym! FHF – Family Housing Fund PSH – Permanent Supportive Housing PBCA – Performance Based Contract Administration PBV – Project Based Vouchers
Acronyms (continued) LIHTC – Low Income Housing Tax Credit Program NOP – Neighborhood Opportunities Program PIS – Placed in Service TIC – Tenant Income Certification BIN – Building Identification Number UA – Utility Allowance LURA – Declaration of Land Use Restrictive Covenants for Low Income Housing Tax Credits PJ – Participating Jurisdiction
TIPS for Property Managers Know the programs in your project Follow your tenant selection plan Evidence of 3 rd party verification attempts Verifications – Signed, dated, original Verifications – Follow 120 day rule
TIPs (continued) Anticipated income – must be verifiable Methods of determining income must be used consistently Demonstrate income and asset calculations NEVER back date Do not use White-Out®
Extended Use Period Owner commits to maintain the development as low-income housing for at least 30 years beginning with the 1 st day of the 15-year compliance period. – Reviews at least once every three years – 20% of tenant files and units – All buildings, common areas and grounds – Compliance monitoring fees – Tenant data collection
Rent and Income Limits Rent and Income limits may be found on the HUD website: www.huduser.org/portal/datasets/mtsp.html www.huduser.org/portal/datasets/mtsp.html OR Using the rent and income limit calculator found at: www.novoco.com/products/rentincome.phpwww.novoco.com/products/rentincome.php
Reference Materials Guide for Completing Form 8823, Low Income Housing Credit Agencies Report of Noncompliance or Building Disposition http://www.irs.gov/pub/irs-utl/lihc- form8823guide.pdfhttp://www.irs.gov/pub/irs-utl/lihc- form8823guide.pdf HUD Handbook 4350.3 revision 1 change 3 http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/aff ordablehousing/programs/home/