NEAHMA March Meeting

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• NEAHMA March Meeting

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(No Transcript)
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Rhode Island Housing Updates

• WCMS/ HDS Updates
• Pilot program
• Technology

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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

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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

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Pilot Program (continued)

• What this means for RI Housing
• Use of technology
• More scrutiny 8823 ?

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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

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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 EHS
• Fires
• Fair Housing violations
• - Over income households
• - Full time students not meeting an exemption

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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)

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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

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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
• 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.

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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

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Who's Who at Rhode Island Housing

• Divisions
• Loan Servicing
• Development
• Resident Services

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Loan Servicing Division

• Leslie McKnight, Director
• lmcknight_at_rhodeislandhousing.org
  401-457- 1184
• Michael DiChiaro, Assistant Director
• mdichiaro_at_rhodeislandhousing.org
  401-457-1274
• Kathleen Millerick, Multifamily Compliance
  Supervisor 
• kmillerick_at_rhodeislandhousing.org
  401-457-1241
• Kathleen Stewart, Multifamily Finance
  Supervisor
• kstewart_at_rhodeislandhousing.org
  401-457-1143
• Susan Halloran, Multifamily Work Out Specialist
  Quality Control Manager
• shalloran_at_rhodeislandhousing.org 401- 450-1339
• Multifamily Compliance Specialists
• Jamie Wolcott, jwolcott_at_rhodeislandhousing.org
  401-450- 1343
• Dotty Valentini, dvalentini_at_rhodeislandhousing.org
  401-457- 1211
• Glen Turner, gturner_at_rhodeislandhousing.org
  401-457-1154
• Lynne Crowell, lcrowell_at_rhodeislandhousing.org
  401-457-1108

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Loan Servicing (continued)

• Loan Servicing - Responsible for the servicing of
  the Corporations 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.

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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.

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Development Division

• Carol Ventura, Director
• cventura_at_rhodeislandhousing.org 401-457-1129
• Anne Berman, Assistant Director
• aberman_at_rhodeislandhousing.org 401-457-1269
• Paula Coleman, Assistant Director
• pcoleman_at_rhodeislandhousing.org 401-457-1134
• Brenda Cianciolo, HOME Program Support Specialist
  
• bcianciolo_at_rhodeislandhousing.org 401-450-1332
• Edison Bedoya, HOME Program Support Specialist
• ebedoya_at_rhodeislandhousing.org 401-457-1102
• Diane Benjamin, NOP, SHP, Thresholds Program
  Coordinator
• dbenjamin_at_rhodeislandhousing.org
  401-450-1347

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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.

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Funding Sources
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Resident Services Division

• Carlos Hernandez, Director
• chernandez_at_rhodeislandhousing.org 401-457-1223
• Gary Monroe, Operations Manager
• gmonroe_at_rhodeislandhousing.org
  401-457-1237
• Vanessa Galarza, Section 8 Program Manager
  vgalarza_at_rhodeislandhousing.org 401-457-1157
• Joanne Curtis, Officer
• jcurtis_at_rhodeislandhousing.org 401-457-1117
• Christine Smith, Officer
• csmith_at_rhodeislandhousing.org 401-450-1383

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Resident Services (continued)

• Resident Services A.K.A. asset management,
  housing management, section 8, Carloss
  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 states 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.  

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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

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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

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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

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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

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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

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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

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Reference Materials

• Guide for Completing Form 8823, Low Income
  Housing Credit Agencies Report of Noncompliance
  or Building Disposition http//www.irs.gov/pub/ir
  s-utl/lihc-form8823guide.pdf
• HUD Handbook 4350.3 revision 1 change 3
• http//portal.hud.gov/hudportal/HUD?src/program_o
  ffices/comm_planning/affordablehousing/programs/ho
  me/

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Questions?

• Thank You !