Housing Credit Compliance Manual 1 Revised August 2019 Table of Contents Introduction ........................................................................................................................................ 7 Foreword ............................................................................................................................................. 7 Background .......................................................................................................................................... 7 1. Program Fundamentals .................................................................................................................... 9 Project Lifecycle .............................................................................................................................................. 9 Before Credit Period ........................................................................................................................................ 9 Eligible Basis ................................................................................................................................................... 9 Claiming Credits .............................................................................................................................................. 9 LURA ............................................................................................................................................................. 10 Credit Period ................................................................................................................................................. 10 IRS Form 8609 .......................................................................................................................................... 10‐11 Minimum Set‐Aside Election ......................................................................................................................... 11 Income Averaging ..................................................................................................................................... 11‐13 Multi‐Building Projects ............................................................................................................................ 13‐14 Federal Income and Rent Limit ..................................................................................................................... 14 Applicable Fraction ................................................................................................................................... 14‐15 Empty Units VS. Vacant Units ........................................................................................................................ 15 Special Needs and Set‐Aside Units ............................................................................................................... 16 Gross Rents ................................................................................................................................................... 16 Initial Audit ................................................................................................................................................... 16 Compliance Period ....................................................................................................................................... 16 Determining the End of the Compliance Period ...................................................................................... 16‐17 Extended Use Period .................................................................................................................................... 17 1.1 FAIR HOUSING & DISCRIMINATION ............................................................................................. 18 Fair Housing .................................................................................................................................................. 18 Fair Housing, Disparate Impact and Criminal History ................................................................................... 19 Violence Against Women Act (VAWA) ..................................................................................................... 19‐20 1.2 PROPERTY TYPES ......................................................................................................................... 20 Property Types ............................................................................................................................................. 20 Assisted Living Project ............................................................................................................................. 20‐21 Assisted Living: Supportive Services ............................................................................................................. 21 Assisted Living: Rents ................................................................................................................................... 22 Assisted Living: Non‐Optional Fees or Services/Mandatory Fees ................................................................ 22 Assisted Living: Income ................................................................................................................................ 22 Acquisition and Rehabilitation ................................................................................................................ 22‐23 ‘In‐Place’ Acquisition/Rehab ................................................................................................................... 23‐24 Tenant Relocation Plan ................................................................................................................................. 24 Income Limits Inside 120 days ...................................................................................................................... 24 Outside 120 days .......................................................................................................................................... 24 Rent Limits .................................................................................................................................................... 24 Resyndication .......................................................................................................................................... 24‐25 Mixed Income Properties ............................................................................................................................. 25 2 Revised August 2019 Permanent Supportive Housing ................................................................................................................... 26 Mixed Use Recertification’s .......................................................................................................................... 26 Tax‐Exempt Bond ......................................................................................................................................... 26 HUD(Project Based)/RD Funding Combined with LIHTC .............................................................................. 26 Section 8 ................................................................................................................................................... 26‐27 2. Owner Requirements ..................................................................................................................... 28 On‐going Compliance .................................................................................................................................... 28 Record Keeping & Record Retention Requirements ................................................................................ 28‐29 Special Needs and Set Asides ................................................................................................................... 29‐30 Change of Ownership/Management ............................................................................................................. 30 Casualty Loss ............................................................................................................................................ 30‐31 Training .......................................................................................................................................................... 31 Reporting ....................................................................................................................................................... 31 Certification On‐line ..................................................................................................................................... 32 Annual Reporting Requirements ................................................................................................................... 32 Annual Reporting Requirements – Documentation ................................................................................. 32‐33 Quarterly Reporting Requirements – Tenant Data ....................................................................................... 34 Quarterly Reporting Requirements – Financial Data .................................................................................... 34 HUD Demographic Collection Requirement ............................................................................................. 34‐35 3. Rents ............................................................................................................................................. 36 Fees ..............................................................................................................................................................