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Monthly News & Updates
Editor's Letter

Summer brings about many changes...children out of school, family vacations, and increasing utility consumption, just to name a few.  For some owners and managers this may also mean a new or reviewed budget.  This month's article from Breana discusses your assets and liabilities and how understanding both very well helps you run your business.  We also answer a client's question about which income should or should not be included when processing HUD applications or recertifications.

If you find yourself having a question you'd like answered in our newsletter then please email us at [email protected] and it might be included in one of our editions.  Also, check out the full training calendar at the end of this newsletter.  Not only do our trainings cover everything from A-to-Z, but we will customize any specific topic that would be of benefit to you and your staff.  

Warm summer wishes,

Jeffrey Promnitz
Senior Director of Operations
Income from Assets
by Breana Thomas, Trainer

With the first day of summer setting the tone, many of us have started looking at our bank accounts to budget for vacation.  Keeping in line with the mindset of assets, this month we are going to shine light on income from assets.

"Surround yourself with assets, not liabilities."

Fair Housing & Accessibility, Article 17
by Randy McCall, Trainer

The Design and Construction Requirements of the Fair Housing Act

We will continue our discussion about multifamily covered units as we look at different design structures.  As mentioned in last month's issue, it is important to note that the ownership type of a property or project has no bearing on the Fair Housing Accessibility rules.  All units are covered by the Fair Housing Act and must comply with the guidelines, including condominiums, single-story town homes, vacation timeshares, college dormitories, apartments housing on private universities, sleeping accommodations intended for residency in a shelter, retirement communities, and continuing care facilities.  These facilities are covered as long as they include at least one building with four or more dwelling units.  Continuing care facilities are a special case as they must be examined on a "case-by-case basis" to determine whether it contains covered multifamily dwellings.

Industry Updates

Fraud Alert: Phony Grant Scams
Beware of fraudsters who say you have been awarded a grant from the Department of Housing and Urban Development (HUD), but they need an upfront fee. HUD will never email or call to "award" you money.

HUD's Office of Inspector General (OIG) has received complaints about fraudsters using the same scam to trick their targets into sending them "fees" so they can process grants for thousands of dollars. While the same phone number is being used, that is likely to change over time. Examples of the fraud are:

Read more about this update

HUD Publishes FY 2016 HOME Match Reductions
HUD has published the FY 2016 HOME Match Reductions list which includes match reductions granted for FY 2016 due to fiscal distress, severe fiscal distress, and Presidential disaster declarations. For those Participating Jurisdictions (PJs) with both fiscal distress and Presidential disaster match reductions, the PJ may take the higher match reduction for the current fiscal year.
Note: Since match reductions due to major Presidential disaster declarations are requested by PJs and granted by field offices at any time during the fiscal year, this list will be updated as needed.
Income Calculator Updated with FY 2016 HOME Program Income Limits
HUD has updated the Community Planning and Development (CPD) Income Eligibility Calculator to incorporate FY 2016 HOME Program Income Limits. These limits are effective for the HOME Program as of June 6, 2016 and can be viewed on the HUD Exchange.

How Does This Affect the Income Calculator?


Discrimination Against Tenant with Disabilities
HUD CHARGES SANTA FE, NEW MEXICO, PROPERTY OWNER WITH DISCRIMINATING AGAINST TENANT WITH DISABILITIES

WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) announced today that it is charging a Santa Fe, New Mexico landlord with housing discrimination for refusing to allow a renter with disabilities to keep her emotional support animal and to have her daughter reside with her. HUD's charge further alleges that Paula Anderson threatened to evict the woman if she did not get rid of her support animal and have her daughter move out.  The woman's daughter provided her with disability-related assistance.

Client question

Josephine from New Mexico asked:

For HUD properties, is there a list of sources of income we should not include as income when we process applications and recertifications?

Read the answer
Discounted Package Program

If you need more than one of our services then let us offer them at a discount in one package.
  • Training
  • File reviews
  • Capital Needs Assessments
  • Accessibility Assessments
  • Transition Plans
  • Utility Allowance Calculations
Read more about these benefits
Quizzle

As we check our bank accounts to budget for summer vacation, we are reminded of the many types of assets in the affordable housing world. This month's questions will focus on some of these assets.

QUESTIONS

1.  What portion of a whole life insurance policy is considered an asset?

a.  The face value of the policy.
b.  The cash value of the policy available to the individual before death.
c.  The yearly premiums made on the policy.
d.  The interest rate times the face value of the policy.

2.  An applicant drives a 1968 Chevy Camaro to your property to apply for an apartment.  How do we handle the vehicle as an asset?
a.  Calculate the percentage of time that the vehicle is NOT driven and then multiply that percentage by the cash value to determine how much is counted as an asset.
b.  The market value of the vehicle is counted since it is considered a classic car.
c.  Even though it is a classic car, it is not counted as an asset because it is used on a regular basis and not held for investment purposes.
d.  Look up the vehicle's value on the Internet and use the resale value.

3.  What is the correct method in determining rental income for a home that includes a mortgage loan?
a.  Count only the monthly payments received for the next twelve months.
b.  Count the total annual rental payments, minus the yearly mortgage interest payments.
c.  Determine the annual rent payments and subtract the yearly mortgage interest payments, as well as any costs to maintain the home.
d.  None of the above.

4.  The Manager at Pinewood Heights Apartments submitted an asset verification form to the local bank for an applicant's checking account. The completed verification form that was returned showed four additional accounts with the applicant listed as "joint owner or beneficiary". How do you handle this?

a.  Count all of the assets to determine asset income because it is the most restrictive.

b.  Get a self-affidavit from applicant that they don't know about the accounts.

c.  Verify whether or not the applicant has access to each account and the percentage of ownership in each. Only count the accounts and portions the applicant actually owns.

d.  Obtain a self-affidavit from the applicant; count half of each account's value.

 

5.  An applicant just finalized his divorce and is applying at your property. He lists that he previously owned the home that he lived in, but lost it in the divorce. How is the disposal of the house handled?

a.  Half of the cash value of the real estate must be counted as an asset.

b.  The applicant can deduct the amount of his loss from his income.

c.  Count as an asset disposed of for less than fair market value.

d.  Do not count assets lost in foreclosure, bankruptcy, divorce or separation settlements.


 

Check your answers!

Zeffert's Training Calendar
Click on the topic for more information or to register from our course catalog

Date
Topic
Location
July 20-21
Flagstaff, AZ
June 21
Affirmative Fair Housing Marketing PlanWebinar
June 22
Violence Against Women ActWebinar
June 23
HUD/EIV BasicsWebinar
June 28
LIHTC Compliance Basics: Part IWebinar
June 29
LIHTC Compliance Basics: Part IIWebinar
July 13
Fair Housing: Focus on Reasonable Accommodations and ModificationsWebinar
July 14
Avoiding Top Errors in Affordable Housing FilesWebinar
July 26-28
LIHTC with HCCP examSt Louis, MO
August 3
LIHTC Acquisition/Rehab Basics: Part IWebinar
August 4
LIHTC Acquisition/Rehab Basics: Part IIWebinar
August 9-11
LIHTC with HCCP examKnoxville, TN
September 14-16
LIHTC with HCCP examHouston, TX
September 27
HUD Basics: Part IWebinar
September 28
HUD Basics: Part IIWebinar
October 5
A "Tour" of the IRS form 8609Webinar
October 6
To Protect and ServeWebinar

NCSHA Conference - June 2016 - Seattle, Washington

It was wonderful seeing many of you this month at the NCSHA conference in Seattle!  Thank you for stopping  by our booth or finding us to say hello.


 


 

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