CLICK BELOW FOR THE QUIZZES & ANSWERS
HOME & HTF Evictions (04/28/2021)
Details | The HOME statute, SEC. 225, under the heading TERMINATION OF TENANCY, says “an owner shall not terminate the tenancy or refuse to renew the lease of a tenant of rental housing assisted under this title except for serious or repeated violation of the terms and conditions of the lease, for violation of applicable Federal, State, or local law, or for other good cause. Any termination or refusal to renew must be preceded by not less than 30 days by the owner's service upon the tenant of a written notice specifying the grounds for the action.”
Details | Appropriations bills since 2014, most recently 2016's HR 2029, SEC. 235. (amending HOME statute Subsection (b) of section 225), have included an exception. It says that the "30-day waiting period is not required if the grounds for the termination or refusal to renew involve a direct threat to the safety of the tenants or employees of the housing, or an imminent and serious threat to the property (and the termination or refusal to renew is in accordance with the requirements of State or local law)."
Details | HTF regulation § 93.303 (c) says a owners must provide a "specific period for vacating that is consistent with State or local law."
Net Income (5/26/2021)
1. We are not ever allowed to subtract amounts off of periodic payment sources to use net income when calculating gross annual income for a household.
True or False.
Details | There are times when we take off certain amounts before calculating gross annual income for households.
2. If the above is False, create a list of exceptions.
NOTE: this does not represent all excluded income (per HUD 4350.3 Exhibit 5-1), but rather times when we commonly must calculate a lower amount from available information.
1. Self-employment: "When calculating annual income, owners must include the net income from operation of a business or profession including self-employment income. Net income is gross income less business expenses, interest on loans, and depreciation computed on a straight-line basis." HUD 4350.3 5-6 H
2. Benefit adjusted for prior overpayment: "If an agency is reducing a family's benefits to adjust for a prior overpayment (e.g.,social security, SSI, TANF, or unemployment benefits), count the amount that is actually provided after the adjustment." HUD 4350.3 5-6 J
[calculation: gross social security less adjustment for prior overpayment]
3. Social Security delayed benefits: Excluded as income are the parts of payments that represent "deferred periodic amounts from supplemental security income and social security benefits that are received in a lump-sum amount or in prospective monthly amounts." HUD 4350.3 Exhibit 5-1 Income Exclusions(13).
[calculation: gross social security less amounts for delayed benefits]
4. State, local government, social security or private pensions paid to
a former spouse:
"Other state, local government, social security or private pension funds paid directly to an applicant’s/tenant’s former spouse pursuant to the terms of a court decree of divorce, annulment, or legal separation are
also not counted as annual income." HUD 4350.3 5-6 L 5
[calculation: gross social security less amounts ordered to former spouse]
5. VA deferred benefits for section 8 residents: "For Section 8 tenants only, any deferred Department of Veterans Affairs (VA) disability benefits that are received in a lump sum or in prospective monthly amounts are excluded from annual income." HUD 4350.3 5-6 Q 3
[calculation: gross VA benefit less amounts for delayed benefits]
6. Earned income for adult dependent full-time students: Income is excluded that is for "earnings in excess of $480 for each full-time student 18 years or older (excluding the head of household and spouse)." HUD 4350.3 Exhibit 5-1 Income Exclusions(11)
[calculation: gross earned income less everything but $480]
7. Adoption assistance payments: "Adoption assistance payments in excess of $480 per adopted child" are excluded." HUD 4350.3 Exhibit 5-1 Income Exclusions(12)
[calculation: gross adoption assistance payments less everything but $480]
8. Military hostile fire pay: Income exclusions include "the special pay to a family member serving in the Armed Forces who is exposed to hostile fire."HUD 4350.3 Exhibit 5-1 Income Exclusions(7).
[calculation: ALL military pay and allowances, less hostile fire pay]
Reserved for a future quiz. Check back on 6/23/2021!
Details | Starting with Change 4 of the HUD Handbook, foster members of the household are counted as household members when determining income limits. See HUD 4350.3 3-6 (E)(3).
Details | Starting with Change 3 of the HUD Handbook, foster members of the household have their income counted as other household members. All unearned income is counted for minors. See 4350.3 Figure 5-2 and 24 CFR 5.609.
Details | See references for questions 1 and 2 above, but contrast HUD 4350.3 5-10 (A)(1)
Details | See 4350.3 5-6 (A)(3)(g) and Exhibit 5-1, Exclusions, (2). Compare Exhibit 5-1, Exclusions, (12) and note that adoption assistance payments are limited to $480 per adopted child, while foster payments are entirely excluded.
Reserved for a future quiz. Check back on 7/21/2021!
Details | The tax credit program uses the Section 8 program rules to determine household income calculations. The IRS refers to the 4350.3 as the HUD authority to be used. See IRS Notice 88-80 and the 8823 Guide 1-2.
Details | The 4350.3 is the official guidebook to the Section 8 multi-family program.
Details | When a PJ selects to define income based on HUD "Part 5" income, the guidance provided in the HUD handbook is useful. It also provides the most thorough explanation of the HUD student regulations adopted by the HOME regulation in 2013.+
Details | Although the handbook HB-2-3560 is the official 515 handbook, the RD program uses the Section 8 regulation to determine household annual and adjusted income calculations. As the 4350.3 is HUD's most thorough explanation of the HUD regulation, it provides details that are not included in the HB-2. See 7 CFR 3560.153 and 24 CFR 5.609 and 611.
Reserved for a future quiz. Check back on 8/25/2021!
1. To ensure consistency, when a resident or applicant requests a reasonable accommodation, verification of the requester's disability must always be obtained.
True or False
Details | Disabilities that are obvious or otherwise know to an owner/agent are not required to be verified. See Joint Statement of HUD and the DOJ on Reasonable Accommodations Under the Fair Housing Act, question 17.
2. How does a property owned by an entity whose legal name contains a religious reference (for example, St. Martin Lutheran Housing) avoid discrimination when advertising?
Details | By ensuring that all advertising is accompanied by a disclaimer that the housing is open to all without discrimination. See FHEO Guidance Regarding Advertisements under Section 804(c) of the Fair Housing Act, Jan. 9, 1995, page 1.
3. Affordable housing federal income limits apply to a disabled person even if they make a reasonable accommodation request to the limits.
True or False
Details | Reasonable accommodation "is a change, exception, or adjustment to a rule, policy, practice, or service that may be necessary for a person with a disability to have an equal opportunity to use and enjoy a dwelling, including public and common use spaces." (Joint Statement of HUD and the DOJ on Reasonable Accommodations Under the Fair Housing Act, question 6).
Income limits and other provisions based on federal law, are not subject to accommodation.
Reserved for a future quiz. Check back on 9/22/2021!
Details | HUD Handbook 4350.3 Exhibit 5-1 tells us that we count "all regular pay, special pay, and allowances of a member of the Armed Forces, except...the special pay to a family member serving in the Armed Forces who is exposed to hostile fire (e.g., in the past, special pay included Operation Desert Storm)" (compare "Inclusions" (8) and "Exclusions" (7)). Hazardous duty pay is not hostile fire pay, and is therefore included.
Details | Persons in the military receive a Leave and Earnings Statement (LES). These statements act essentially as pay stubs and provide income information for all military pay and allowances received.
Details | 4350.3 5-6 (B)(3)(a) says that normally "if the spouse or a dependent of the person on active military duty resides in the unit, that person’s income must be counted in full, even if the military member is not the head, or spouse of the head of the family." However this section of the handbook goes on to clarify that Owners are encouraged to be as lenient as responsibly possible to support affected households in situations where persons are called to active duty in the Armed Forces." This includes allowing "a tenant living in an assisted unit to provide care for any dependents of persons called to active duty in the Armed Forces on a temporary basis, as long as the head and/or co-head of household continues to serve in active duty. Income of the child (e.g., SSI benefits, military benefits) is not counted as income of the person providing the care." In the described case, the children and absent parent would likely to be considered part of a temporary arrangement and not household members whose income must be counted (4350.3 5-6 C 2). The IRS endorses the same approach for tax credit properties in the 8823 Guide, Chapter 4.
Details | See 4350.3 3-13 (A)(2)(d).
Details | Unlike the HUD rule, the tax credit/bond student rule does not make any exception specifically because someone is a veteran.
Reserved for a future quiz. Check back 10/27/2021!
Details | Term life is excluded as an asset. See 4350.3 Exhibit 5-2 (A)(7).
Details | While term life cannot be cashed in and is not an asset to a person while they are alive, once life insurance is paid, the lump sum amount received by a beneficiary is considered an asset. See 4350.3 5-6 Q.
Reserved for a future quiz. Check back on 11/24/2021!
Details | Starting with the Housing and Economic Recovery Act (HERA) in 2008, tax credit income limits hold harmless. That is, once a project places in service, the income limits used will never go below the limits used in a prior year.
Details | HUD describes the tax program limits as Multifamily Tax Subsidy Program limits.
Details | HOME limits are different than other HUD program (AMI) or the tax credit limits. They are generally published months later and are implemented then.
True or False
Details | HERA Special limits are available to projects with at least one building placed in service in 2008 or earlier. A 2009 project does not qualify.
Details | Tax credit deals that are 4% "federally subsidized" are not eligible for the rural limits. HERA defined "federally subsidized" as tax-exempt bonds.
Details | Areas defined by USDA as eligible for RD assistance are eligible for the rural rent option.
Reserved for a future quiz. Check back on 12/22/2021!
Details | A unit of any size is counted as one unit toward the percentage of total units needed to meet a project's minimum set-aside. Square footage only is a factor when calculating a building's applicable fraction.
Details | The 50 in 20-50 indicates the highest income limit that ANY unit at the project can have and retain its status as a tax credit unit.
Details | New average versions of the 25-60 and 40-60 minimum set-asides were enacted with the new law. The 20-50 rule does not have an average version.