Legislative Updates

AHMA-PSW’s Affordable Housing News 02/28/19

February 28, 2019

The FY 18 Appropriations Act authorized the conversion of properties assisted by Section 202 Project Rental Assistance Contracts. HUD is in the process of revising the RAD Notice to include a new Section 4 that would provide implementation instructions for the conversion of Section 202 PRACs under RAD. Prior to implementation, a draft Section 4 has been posted to HUD’s Office of Multifamily Housing’s “Drafting Table” where HUD will be accepting public feedback for the next two weeks. Following consideration of public feedback received, the Office of Recap will proceed toward incorporation of the new Section 4 into a revised RAD Notice.
CTCAC has announced the final proposed regulation changes to Section 10325(c)(7): Final Proposed Regulation Changes
CTCAC requirements for developer fee limits and resyndication projects result in some project owners contributing general partner equity. This general partner equity is in addition to the typical $100 capital contribution required by the usual ownership structure, a limited partnership. Because TCAC issues 100% of the tax credits based on 100% of the tax credit equity (which includes a general partner portion and a limited partner portion), TCAC is providing guidance for projects with additional general partner equity. If the limited partnership agreement’s (LPA’s) capital contributions include additional general partner equity, the LPA should reflect a distinction in general partner equity between the LPA capital contribution requirement and the additional general partner equity. If you have questions about this please contact Marisol Parks or Gina Ferguson.
ADOH announced that Tuesday, February 26, 2019, the Internal Revenue Service published the final regulations to amend compliance monitoring requirements under Section 42 of the Internal Revenue Code. The Arizona Department of Housing (ADOH) Section 8/Compliance Division will adopt these amended regulations effective February 26, 2019. Please download the Information Bulletin for additional information.
HUD has announced that they are currently seeking comments for the renewal of form HUD-2530 (previous participation). Comments or requests for draft copies of the form must be submitted to Colette.Pollard@hud.gov by April 27, 2019.