NEAHMA March Meeting March 19, 2014 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. 2. 3. 4. 5. At least one individual is receiving assistance under Title IV of the Social Security Act (i.e.TANF); 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; 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); Household consisting of persons who are married and eligible to file a joint tax return; 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 lmcknight@rhodeislandhousing.org 401-457- 1184 • Michael DiChiaro, Assistant Director mdichiaro@rhodeislandhousing.org 401-457-1274 • Kathleen Millerick, Multifamily Compliance Supervisor kmillerick@rhodeislandhousing.org 401-457-1241 • Kathleen Stewart, Multifamily Finance Supervisor kstewart@rhodeislandhousing.org • 401-457-1143 Susan Halloran, Multifamily Work Out Specialist & Quality Control Manager shalloran@rhodeislandhousing.org 401- 450-1339 • Multifamily Compliance Specialists: Jamie Wolcott, jwolcott@rhodeislandhousing.org Dotty Valentini, dvalentini@rhodeislandhousing.org Glen Turner, gturner@rhodeislandhousing.org Lynne Crowell, lcrowell@rhodeislandhousing.org 401-450- 1343 401-457- 1211 401-457-1154 401-457-1108 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 cventura@rhodeislandhousing.org 401-457-1129 • Anne Berman, Assistant Director aberman@rhodeislandhousing.org 401-457-1269 • Paula Coleman, Assistant Director pcoleman@rhodeislandhousing.org 401-457-1134 • Brenda Cianciolo, HOME Program Support Specialist bcianciolo@rhodeislandhousing.org 401-450-1332 • Edison Bedoya, HOME Program Support Specialist ebedoya@rhodeislandhousing.org 401-457-1102 • Diane Benjamin, NOP, SHP, Thresholds Program Coordinator dbenjamin@rhodeislandhousing.org 401-450-1347 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. Funding Sources PROGRAM Road Home (RI Housing) INCOME LIMITS Less than 80% of State median income TENANT RENTS greater of 30% monthly gross or a minimum rent of $50 (unless the development has a pre-existing minimum rent less than $50) OTHER Applicant must be homeless, agree to case management and agree to work on meeting benchmarks of case management plan. NOP (State) Less than 40% State median greater of 30% monthly gross or minimum NOP rent {family limit or individual limit} Two categories: FHF - Family Housing Fund or PSH – Permanent Supportive Housing Rental Production (LIHTC) Section 42 (Federal) 40% of units at 60% AMI or lower 20% of units at 50% AMI or lower 50% and 60% of AMI Some 80% maximum of 30% of 60% rents maximum of 30% of 50% rents maximum household income of 140% of AMI greater of 30% adjusted, 10% gross, welfare rent, or minimum rent set by housing authority (if applicable) Section 202 (HUD) 30% of AMI (extremely low) (75% target) 50% of AMI (very low) 80% of AMI (low) 50% of AMI (very low) Section 811 (HUD) 50% of AMI (very low) HOME (Federal / HUD and some Local PJs) HCVP (HUD) low or high HOME rents greater of 30% adjusted, 10% gross, or welfare rent greater of 30% adjusted, 10% gross, or welfare rent elderly (62+) Disabled Resident Services Division • Carlos Hernandez, Director chernandez@rhodeislandhousing.org 401-457-1223 • Gary Monroe, Operations Manager gmonroe@rhodeislandhousing.org 401-457-1237 • Vanessa Galarza, Section 8 Program Manager vgalarza@rhodeislandhousing.org 401-457-1157 • Joanne Curtis, Officer jcurtis@rhodeislandhousing.org 401-457-1117 • Christine Smith, Officer csmith@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 3rd 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 1st 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 OR • Using the rent and income limit calculator found at: www.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/lihcform8823guide.pdf • HUD Handbook 4350.3 revision 1 change 3 • http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/aff ordablehousing/programs/home/ Questions? Thank You !