HUD has released a Federal Register Notice that gives guidance on the Rental Assistance Demonstration Project (RAD). Most significant on the multifamily (as opposed to PIH) programs is information included in the 2018 Appropriations Act that properties converting from RAP, Rent Supp, Mod Rehab, SRO and 202 PRAC that are in high cost areas (established under Housing Notice 2017-06) will have initial rents set at the comparable market rent for the area. This notice also clarifies that existing Residents are not subject to rescreening at time of conversion. The notice also states that further guidance on 202 conversions will be given at a later date. The full notice may be accessed at FR-6105-N-01.
In TCAC’s continued effort to expedite the processing of Placed in Service (PIS) packages and Form 8609 request submissions, TCAC has created tutorial videos to assist low-income housing tax credit (LIHTC) project owners prepare their PIS documentation. The tutorial videos are now available on the TCAC website at: Placed in Service Tutorial Videos. TCAC highly encourages LIHTC project owners to view the tutorial videos and utilize them as a resource when preparing the PIS documents for submission. Please contact PIS staff for any questions you may have.
NAHMA’s Advocacy Challenge call “Advocacy Call Part 2: How to Host a Property Tour” on July 12th at 4pm EST (1-800-377-8846, 80093908#). Hear from NAHMA Members with advocacy experience and bring your own questions or ideas to share. This advocacy workshop mini-series is designed to help us conduct advocacy during the AHMA Advocacy “World Cup” Challenge (July 27 – Sept 3, 2018) and beyond.
Rural Developmentrevised Chapter 3 of the MFH Asset Management Handbook to reflect the Fiscal Year 2019 Management Fees. The FY19 management fee is increased by the 2018 Operating Cost Adjustment Factor (OCAF) for each state. These fees will be used for the FY19 budget cycle beginning January 1, 2019. All FY19 management fees have been rounded up to the nearest dollar.
The IRS recently issued various prescribed rates for federal income tax purposes, including applicable federal interest rates, adjusted applicable federal interest rates, and adjusted long-term and tax-exempt rates for July 2018. As provided in the ruling, LIHTC Appropriate Percentages Under Section 42(b)(1) for July 2018 include the appropriate percentage for the 70% present value low-income housing credit (7.68%) and the appropriate percentage for the 30% present value low-income housing credit (3.29%).
From CTCAC: The transmittal letter to the local reviewing agency (LRA) has been updated to include information about the timing of the LRA evaluation. While evaluation forms from a local reviewing agency to TCAC can be accepted after the 20 day period, late evaluations may not be acknowledged in the TCAC staff report. Once a staff report has been finalized for the Committee, changes to the LRA language will not be made. For more information California Tax Credit Allocation Committee website