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You may be weighing the advantages of having a full-time live-in staff member at your tax credit site. But before you set aside a unit for a member of your management, leasing, or maintenance staff, there are a few guidelines that you must be aware of to stay in compliance.
Available Options for Employee Units
If you are planning to charge the employee rent for the unit, the Internal Revenue Service (IRS) makes two options available, depending on the type of project.
There is probably nothing more essential to a tax credit site than having trained, competent staff. Over the past few years, the regulations have changed so quickly, it can be difficult to stay completely up to date. Add to that the burden caused by high turnover—when a staff member quits, knowledge and expertise go walking out the door, and getting his or her replacement up to speed can strain tight site budgets.
If you're like most owners and managers of assisted sites, you've brought Internet access into your offices to help you run your site and communicate with HUD, prospects, applicants, and residents. In fact, most of the business your site conducts with HUD probably takes place over the Internet. As a result, you can expect your site employees to spend a good deal of their time using the Internet and sending site-related email.
It's a good idea to quiz your staff members regularly to assess their familiarity with the low-income tax credit (LIHTC) program. Testing staff members this way can confirm that you're working with a team equipped to tackle important compliance issues and keep the owner's tax credits safe. Or it can reveal gaps in staff members’ compliance knowledge, so you'll know where they need training to get up to speed.
The manager of a Texas tax credit site reported that a cunning criminal got into the management office by pretending to be a rental applicant. The criminal asked to tour a vacant unit. A female member of the leasing staff, who was on duty alone in the office at the time, had a bad feeling about him. But she shook it off, considering him a prospect, and turned to get her handbag so they could begin the tour. He struck her on the back of the head, grabbed the handbag, and fled the office.
In 2007, HUD's Office of Fair Housing and Equal Opportunity (FHEO), the division devoted to anti-discrimination and Fair Housing concerns, investigated approximately 10,300 cases involving claims of discrimination, according to Kim Kendrick, assistant secretary for FHEO. Based on a pattern of investigation by HUD, going back several years, HUD is increasing its efforts to end discrimination in housing.
This month, the manager of an affordable housing site in Texas reported how—as many managers have done—she had brought Internet access into the management office to help run the site and communicate with HUD, prospects, applicants, and residents. She expected site employees to spend a lot of time using the Internet and sending site-related email. What she did not expect was that Internet access would also lead employees to spend a good deal of time using the Internet for personal purposes.
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