In response to confusion over the applicability of the Federal Trade Commission's "Red Flag Rules" to prevent identity theft, NAHMA requested that the law firm Hessel, Aluise, and Neun, P.C. analyze the regulations and how they affect the multifamily affordable housing industry.

Hessel, Aluise, and Neun, P.C. determined that the address verification regulation does apply to the multifamily housing industry, while the "Red Flag Rules" regarding the prevention and mitigation of identity theft DO NOT apply to providers of multifamily affordable rental housing. These regulations apply to creditors and financial institutions only and therefore excludes the multifamily housing industry.

The full text of the NAHMAnalysis and the legal opinion are available on the member section of the NAHMA website, www.nahma.org.

Today, March 27, 2009, HUD announced that the effective date of the rule entitled ''Refinement of Income and Rent Determination Requirements in Public and Assisted Housing Programs'' published in the Federal Register on January 27, 2009 has been delayed.  The rule, which was originally scheduled to become effective on March 30, 2009, will become effective on September 30, 2009.

A delay until September 30, 2009 will provide HUD with additional time to:

• Review the public comments received in response to the February 11, 2009, notice;
• Respond to those comments in a subsequent publication; and
• Consider whether additional regulations or changes to the regulations are in order.

The delay only affects changes to the income calculation, citizenship verification requirements and Social Security Number requirements.  The deadline for owner/agents to implement EIV is still September 30, 2009.

On March 19, HUD released the estimated median family incomes (MFIs) and income limits for Fiscal Year (FY) 2009. MFIs are used as the basis for income limits in several HUD programs (including the Public Housing, Housing Choice Voucher, CDBG, and HOME programs), as well as in programs run by the Department of Agriculture, the Department of Treasury, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, and Government Sponsored Enterprises.

The FY 2009 estimates are calculated for 532 metropolitan and 2,043 nonmetropolitan areas in the U.S. and its territories, using the Fair Market Rent area definitions applied in the Section 8 Housing Choice Voucher program. The FY 2009 MFIs are derived from 2000 Census data updated with local and state American Community Survey 2005-2007 multiyear data.

The FY 2009 HUD income estimates and limits, a documentation system that explains the derivation of each area's limit and median income estimate, links to the current Income Limits Area Definitions, and other useful information are available as a free download from HUD USER at www.huduser.org/datasets/il/il09/index.html.

In addition to the traditional Income Limits described above, HUD has developed a new set of income limits specifically for projects that rely upon Internal Revenue Code Section 42 Low-Income Housing Tax Credits and Section 142 projects financed with tax-exempt housing bonds. Projects in these two categories are now referred to by HUD as Multifamily Tax Subsidy Projects (MTSPs). The FY 2009 HUD MTSP income limits, a documentation system that explains the derivation of each area's MTSP limit and median income estimate, and other useful information are available as free downloads from HUD USER at www.huduser.org/datasets/mtsp.html.

HUD has released its final rule, "Refinement of Income and Rent Determination Requirements in Public and Assisted Housing Programs."

The rule requires the use of HUD's Enterprise Income Verification (EIV) system by public housing agencies (PHAs), and multifamily housing owners and management agents (O/As), when verifying the employment and income of program participants at the time of all reexaminations or recertifications. The overall rule is effective March 30, 2009, but the EIV requirement for multifamily housing O/As is effective six months from the effective date [September 30]. HUD explained, "The final rule requires PHAs and O/As to implement and use HUD's EIV system for verifying income of current participants only. For multifamily housing O/As, implementation of the use of EIV will commence 6 months after the effective date of this final rule to allow them additional time to become as familiar with using the EIV system as their PHA counterparts and to prepare for the full implementation of EIV."

Other requirements in the final rule include (but are not limited to):

• Social Security Numbers are required for participants and new household members (including children);
• Applicants who cannot provide Social Security Numbers for all family members retain their place on the waiting list for the program; however, all members of the household must provide appropriate documentation of his or her Social Security Number before the household is admitted into the program; and
• Verification of U.S. citizenship or nationality is also required.

Annual rent adjustments are required for housing units receiving assistance under Section 8 of the U.S. Housing Act of 1937. To help meet this requirement, HUD has developed rent adjustment factors, known as the Annual Adjustment Factors (AAFs). AAFs are calculated based on changes in residential rent and utility costs for specified geographic areas, according to Bureau of Labor Statistics Consumer Price Index survey data. The AAFs for 2009 were published in the Federal Register on January 12, 2009 and are available electronically from HUD USER at www.huduser.org/datasets/aaf.html.

Separate rent adjustment procedures are used for each of three program categories:

• Section 8 New Construction, Substantial Rehabilitation, and Moderate Rehabilitation programs;
• Loan Management and Property Disposition programs; and
• Section 8 Certificate Project-Based Certificate program.

The adjustments are shown in two schedules: one for adjusting the rent of units where the highest-cost utility is included in the contract rent, and the other for units where the tenant pays for the highest-cost utility. Separate AAF schedules are also shown for specified geographic areas.

In a study dated June 2008, HUD's Office of Policy Development and Research released its assessment of the effectiveness of the Section 202 program in meeting the needs of very low income elderly Americans.   The study was a thorough analysis of the Section 202 program, its history, its demographics, and key issues including processing delays, cost limits, and project size and allocations.

According to the NAHMA government affairs staff, the study finds that the Section 202 program is an important and cost effective alternative to premature placement in institutional settings, and necessary where states are engaged in transitioning seniors from costly nursing homes to the community. It estimates the potential cost savings for the first time as it acknowledges that seniors overwhelmingly prefer to remain in their own homes. Recommendations include the following: providing funding for service coordinators in all Section 202 properties, producing 10,000 units per year over the next 10 to 15 year period, and encouraging owners and managers of Section 202 properties to collaborate with nursing homes in their communities to provide necessary health related services. Further, if we can successfully couple tax credits with the Section 202 advances, we can have a real impact on the availability of senior housing.

To read the complete study, Section 202 Supportive Housing for the Elderly: Program Status and Performance Measurement, go to http://www.huduser.org/Publications/pdf/sec_202_1.pdf .

"From: HUD USER News

The Housing and Custom Residential Knowledge Community of the American Institute of Architects (AIA), in conjunction with the Office of the Secretary of Housing and Urban Development, is now accepting applications for the 2009 Housing and Community Design Awards program. These annual awards recognize the best in residential housing design, particularly in affordable housing, community-based design, participatory design, and housing accessibility. Award recipients will have their projects publicized by HUD and in AIA's enewsletter, AIArchitect, at www.aia.org/aiarchitect/. The winning designs will also be honored at the 2009 AIA National Convention in San Francisco,
on April 30 - May 2.

Applications are due December 12, 2008. The criteria and instructions for online submissions are located at www.aia.org/nationalawards. Questions should be directed to AIA at (202) 626-7586
or by email to honorsawards@aia.org."

"The Housing and Economic Recovery Act of 2008 provided roughly $4 billion through CDBG for redevelopment of abandoned and foreclosed properties. HUD has issued a notice describing the allocation formula, allocation amounts, the list of grantees, alternative requirements, and the waivers of regulations granted to grantees under the legislation for this Neighborhood Stabilization Program.

For more information, please see:

Notice of Allocations, Application Procedures, Regulatory Waivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Grantees Under the Housing and Economic Recovery Act, 2008."

"The Violence Against Women Act (VAWA) provides legal protections to victims of domestic violence, dating violence or stalking in the Housing Choice Voucher and project-based Section 8 program.

HUD's Office of Housing NOTICE: H 08-07 describes the implementation of VAWA for the multifamily project-based Section 8 program. These protections prohibit owners and management agents (O/As) from evicting or terminating assistance from individuals being assisted under a project-based Section 8 program if the asserted grounds for such action is an instance of domestic violence, dating violence or stalking. O/As may request a tenant to certify that he/she is a victim of domestic violence, dating violence or stalking and that the incidence(s) of threatened or actual abuse are bona fide in determining whether the protections afforded under the VAWA are applicable.

The notice transmits the Certification of Domestic Violence, Dating Violence or Stalking, Form HUD-91066 (Attachment 1), as required by the provisions of Section 606 of the VAWA. It also transmits the HUD-approved Lease Addendum (Form HUD-91067) (Attachment 2) for use with the applicable HUD model lease for the covered project-based Section 8 program.  This addendum revises the lease to reflect the statutory requirements of the VAWA that are related to the project-based Section 8 assistance programs. 

For more information, please see:

Implementation of the Violence Against Women and Justice Department Reauthorization Act of 2005 for the Multifamily Project-Based Section 8 Housing Assistance Payments Program."

HUD has made changes to the Section 8 Renewal Guide:

Chapter 15 has been revised to simplify its use.  There are two key changes in the chapter.  First is the removal of the 6 percent return on equity.  This passage is being moved to new Chapter 2 that will be released in the near future.  Secondly, we have removed the prohibition of identity-of-interest transfer transactions.

The addition of Attachment 20 provides for extension of the term of an existing 524 MAHRA Housing Assistance Contract renewed under Option One or Option Two of the Section 8 Renewal Policy Guide.

1. The Department will permit a one time extension of the existing contract term if:
   There is no resetting of contract rents upon execution of the contract extension; and
   Annual rent adjustments and if applicable, RCS updates adhere to the original anniversary date.
2. Only the term of the existing MAHRA contract is affected by the extension if:
   The PM/CA approves the request, the Owner and HUD/CA will sign the HAP Extension form. Change to Attachment 5 provides clarifying where the Owner may find where the initial equity was computed.
   
   

Relevant Documents:

• Final Attachment 5 Page Change 09-10-08 (Word PDF)
• Final Attachment 20 Contract Extension 9-10-08 (Word PDF)
• Final Transmittal Page V2 9-10-08 (Word PDF)
• Final User Guide Chap 15 Page Changes 9-10-08 (Word PDF)

Change to Attachment 5 provides clarifying where the Owner may find where the initial equity
was computed.