HUD has released a new PowerPoint presentation as of March 9, 2017, as part of their Dine & Learn series. Many of these clarifications are reiterations of existing rules. Many of the rules that need clarification and reinforcement are a little surprising, as the issues are not new and the clarifications are really reinforcing basic rules. It appears that these clarifications are the result of some observations made through reviews of photographs from REAC Inspections as well as observations made by Quality Assurance REAC Inspectors.
The presentation also included a list of examples of pictures that provided clarification on certain situations for REAC Inspectors. Some of these include:
With these recent changes, it is more important than ever that properties take every inspection seriously, regardless of how you may have performed on past inspections. Contact US Housing Consultants at www.us-hc.com or by calling (603) 223-0003 to schedule your next Pre-REAC or a REAC Training to make sure that your property has the acceptable repairs and is compliant with the new Industry Standards.
As compliance consultants who review thousands of HUD and LIHTC files, we have put together some frequently asked questions regarding Annual Recertifications (ARs) and required forms. We are hoping that the following FAQs will provide you with guidance with regard to ARs and the paperwork.
Q When should ARs be started?
A 120 days in advance of the effective date; however, check with the State Agency to determine how long verifications are valid. Some State Agencies require verifications to be dated within 90 days of the effective date.
Q I’m completing recertifications for residents at my property. Do I have to get third-party verification of everyone’s income?
A It depends on the State Agency. HUD now considers documents provided by the tenant that were generated from a third party source as third party verification. Some State Agencies have also adopted this practice; others require traditional third party verification. Note also that it is permissible for a tenant to hand deliver verifications as long as management contacts the verifier to confirm the information.
Q Can I use income/asset information from the 50059 to generate the TIC?
A It depends on the State Agency. Some State Agencies do allow and even prefer for TICs and 50059s to match. Typically, first year LIHTC annual recertifications need to be a full recertification. Many State Agencies allow for self-certification after the first full annual recertification. Check with your State Agency for guidance.
Q What happens if I find out at recertification that one of my residents was over income at the time they moved in to my LIHTC property?
A If an Owner/Management Company discovers non-compliance, they should contact the State Agency for the community and let them know what they found and how they plan to correct the non-compliance. In most cases, non-compliance that is found and corrected prior to a state agency review being scheduled does not need to be reported to the IRS as long as it is disclosed and corrected.
Q Can EIV be used for the LIHTC Program?
A No. EIV cannot be used for any programs other than specific HUD programs.
Q At what point should the EIV Income Report be obtained?
A At time of AR appointment. That way, you can attempt to resolve any discrepancies during the AR appointment.