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Articles | "Audit" Your Policies? Are They Up-To-Date?

article casualty loss compliance monitoring fair housing home hud income calculations lihtc nhtf productivity tax-exempt bonds vawa Dec 14, 2022

As we approach the end of the taxable year for many properties, many competent owner/agents are doing file audits to ensure that household files are in good shape. Another audit that we encourage relates to compliance policies. Are they up-to-date? To assist our Blog readers, we are providing a checklist of regulatory and other changes in the last 10 years that might require policy adjustments. If any matter related below does not "ring a bell" we are also providing references to allow for further investigation to guide policy making. 

Checklist Recent federal guidance or case law changes that may affect management or monitoring Agency compliance policies

  1. Change 4 of the HUD Handbook adjustments - treatment of foster household members - definition of "third-party" verification - how to calculate retirement accounts | HUD 4350.3 Rev 1, CHG 4, IRS Newsletter #54

  2. HOME regulation changes - prohibition of PHA UAs - 2 months of income history verification requirement - HOME student rules | 24 CFR 92 (2013)   

  3. Updates to HUD income regulations with several changes not reflected yet (as of 2022) in the HUD Handbook 4350.3 Exhibit 5-1 | 24 CFR 5.609(b) and (c)
  4. Charging rents for tax credit employee units  | IRC §42 ATG Chap 12 - June 2014

  5. LIHTC casualty loss clarification for declared disasters | Rev. Proc. 2014-49
  6. Tax-exempt bond casualty loss clarification for declared disasters | Rev. Proc. 2014-50 
  7. Nation HTF regulations - several important differences from HOME such as no student requirements and UA and lease termination differences  | 24 CFR 92 (2015)

  8. Clarification of tenant rights during an LIHTC rehab of a HUD property | Occupany Protections for HUD-Assisted Households in Properties with LIHTCs - January 12, 2015 
  9. Procedures to ensure that persons are not discriminated against based on disparate impact for criminal background checks under the Fair Housing Act | FHEO Chief Counsel Guidance, March 2016

  10. The definition of “tuition” for student financial assistance | HUD Fed Reg Notice, September 2016

  11. Procedures and forms to support compliance with the Violence Against Women Act | HUD Regulation, November 2016 & Further Guidance, May 2017

  12. The 15-day notice given for LIHTC inspections  | Treas. Reg 1.42-5, July 2020

  13. The change in the definition of “HUD-regulated” in the LIHTC UA rule and its impact on LIHTC/HOME properties | Treas. Reg 1.42-10, March 2019

  14. Handling of ABLE Accounts | Notice HUD-H-2019-06

  15. Handling of internet-bought assistance animal verifications | FHEO Notice 2020-1, January 2020

  16. Handling conflicting reasonable accommodation needs | Cohen v Clark, SCO Iowa, June 2020

  17. Addressing spouses as live-in aids | Johnson v. Guardian, April 2021

  18. A number of COVID-related deadlines and policies | IRS Notices 2021-12, 2022-05, and 2022-52

  19. HUD carbon monoxide detector rules (for HUD MF & HCV holders) | NOTICE H 2022-01

  20. “Nuisance” policies made illegal as they relate to VAWA 2022 | VAWA Reauthorization, March 2022

  21. The Average Income Test regulation - AIT and AUR adjustments | Treas. Regs. 1.42-19, -19T, and -15, October 2022

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