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Chipping and peeling paint on a building's exterior. Loose wood siding. Exposed wiring. Rusted steps and railings. These were just some of the problems uncovered during the Real Estate Assessment Center's (REAC) inspection of a 77-unit Section 8 project. And after receiving low scores on two consecutive physical inspections, HUD terminated the owner's Section 8 payments.

The revised 8823 Guide, released by the IRS on Sept. 25, 2009, addresses issues brought about by the Housing and Economic Recovery Act of 2008 (HERA), amendments to the HUD Handbook 4350.3, and the revised utility allowance regulation. Last month, we looked at significant changes related to household income. In this article, we'll review two key updates that you need to be aware of to ensure that your tax credit units stay in compliance.

If you're planning a building project at your site, whether it involves new construction, rehabilitation, or just light repair work, you may be apprehensive about working with a new contractor. But investing some time up front to find the right candidate and define the terms of the job may make the difference between a smoothly run project and one that is fraught with tension and conflict.

We've asked two leading industry experts to share their advice on h...

On Sept. 25, 2009, the IRS released its revised 8823 Guide, which includes changes brought about by the Housing and Economic Recovery Act of 2008 (HERA), amendments to the HUD Handbook 4350.3, updated interpretations and guidance, and in-depth information on utility allowance procedures.

If you're having problems with groups loitering in your parking lot, common areas, or elsewhere on your property, you're not alone. Nonresident loiterers have been a long-time complaint for tax credit site managers. Loitering has the potential to incite vandalism, burglary, muggings, drug dealing, and other serious crimes, so you need to take a tough stance to stop it now. How? By creating a no-tolerance policy that is consistently enforced.

It is any site manager's worst nightmare—that moment when the phone rings to notify you that your world has been turned upside-down. The potential threats caused by natural hazards, such as hurricanes, wildfires, floods, winter storms, landslides, or earthquakes, happen more often than most people think. While a disaster occurring at your particular site may seem like a low probability, it is possible, and the impact on your site, staff, and residents can be t...

The tough economy has many low-income housing tax credit sites operating with minimal staffing and restricted budgets. Some find that carefully managing operating costs can help to offset the lack of rent growth caused by declining median incomes in the past few years.

Most tax credit sites keep some type of prospect waiting list. If your site participates in HUD-subsidized programs, such as Section 8 or Section 236, a written resident selection plan is mandatory and must follow HUD guidelines [HUD Handbook 4350.3., Ch. 4, Sec. 1]. But even if not required by HUD or your state housing agency, keeping detailed waiting list records helps to show that you've been actively marketing your units, and it offers evidence to dispel potenti...

An all-too-common scenario in tax credit site management is the household that becomes uncommunicative at recertification time. You've probably encountered such households before: Multiple notices to make an appointment for a recertification interview are shrugged off and ignored.

While you want to make every effort to work with qualified households and maintain a long-lasting relationship, it's also your job to make sure that residents who are no longer e...

Keeping household files well organized and up to date is a critical factor in demonstrating compliance with tax credit requirements. Lack of proper documentation, inadequate or missing clarification on verifications, asset or income errors, and typos are among the common mistakes that auditors find during a review.