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This year marks the 56th anniversary of the Fair Housing Act (FHA), enacted by Congress on April 11, 1968. The FHA has been amended several times and now prohibits housing discrimination based on race, color national origin, religion, sex (including gender identity and sexual orientation), disability, and familial status.
Four new types of income will no longer impact eligibility calculations.
Specific sources of income are excluded by federal statute from consideration as income for purposes of determining eligibility for, or benefits in, a HUD program. By extension, these income exclusions also apply to the LIHTC program. This is because tax credit law requires owners to use HUD rules regarding income calculations.
On Jan. 10, HUD published a notice on changes the agency is intending to make to the methodology used for calculating Section 8 income limits. HUD publishes these income limits each year based on changes to each housing area’s median income. In calculating the income limits for each housing area, HUD relies on census data, subject to various rules and adjustments.
A definite plan to deal with potential disasters at your site is an important element of providing a safe environment for your staff and residents. The U.S. is experiencing more frequent and intense weather- and climate-related hazards such as hurricanes, wildfires, and flooding. These extreme weather events can lead to flooding, power loss, property damage, transportation disruptions, interrupted access to critical resources, and even loss of life.
Prepare for how these annual changes will affect income, asset, and eligibility determinations.
Low-income housing tax credit law requires site owners to use HUD’s Section 8 rules regarding income calculations. According to Treasury Regulations §1.42-5(b)(1)(vii), “Tenant income is calculated in a manner consistent with the determination of annual income under Section 8 of the U.S. Housing Act of 1937.”
As Congress considers reforms, sites may need to take action now to limit the financial strain.
As a site owner or manager, you understand the severe financial consequences that can result from things beyond your control, such as a loss due to fire, flood, weather, or other causes. In addition, whether it’s a legitimate claim or not, you could also face expensive legal difficulties from liability claims associated with on-site crime, common parking areas, and site amenities such as swimming pools and playground equipment.
We’ll explain how to treat real estate when calculating a household’s income and assets.
The regulations for the tax credit program require site owners to use the rules found in HUD Handbook 4350.3 to calculate the annual income of applicants and residents. During the process of certifying or recertifying households, you may learn that an applicant or household member owns real estate.
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