The following guidance is being provided regarding several Housing Tax Credit (HTC) and/or HOME issues. First, on October 31, 2014 HUD issued Notice H 2014-15. In this memo, they indicated that the long standing passbook rate of 2% would change to .06%. This change becomes effective on February 1, 2015. This passbook rate is to be applied to the value of assets of a family when they total over $5,000. The owner will compare this amount to the actual anticipated income stemming from the family’s assets and count whichever amount is higher.
The memo as published by HUD can be found on our website in the Program Compliance area under Updates and Resources. HUD Notice H 2014-15 – Change to Passbook Rate
Second, HUD announced earlier this month that the 2015 Income Limits have been delayed. This is because the Department of Health & Human Services has not yet released the 2015 poverty guidelines which are used to help determine HUD’s new Extremely Low Incomes. These limits are the greater of the federal poverty guidelines or 30% of AMGI. HUD anticipates the 2015 limits will be published in February 2015. Shortly after their release, we will be issuing charts with both income limits and maximum rents for the HTC program.
Third, changes in the 2013 HOME Final Rule will impact those properties in Ohio that have HOME funding.
- HOME is now requiring compliance with the HUD Student Rule. Those of you who attended our housing conference in November may have heard us announce it would be effective for all properties within their compliance period including future allocations. We are currently awaiting technical guidance from the HOME program as to which properties will need to comply with this rule based on their funding date. We anticipate receiving this guidance in early January.
- The HOME rule is now requiring owners to have rents approved for their HOME units. We will be developing a form for owners to use to submit this information for approval by OFHA staff.
- Another change in the 2013 HOME Final Rule requires Housing Credit Agencies to determine an individual utility allowance for each HOME rental project either (1) by using the HUD Utility Schedule Model or (2) by otherwise determining the allowance based upon the specific utilities used as the project. PHA estimates or other estimates that are not project specific are no longer acceptable. The effective date for implementation of this new Rule was August 23, 2013. However, due to many comments and questions from the industry, HUD issued additional technical guidance indicating the new Rule would apply only to projects awarded HOME funding in 2015 and beyond. OHFA will provide further guidance within the next several weeks on this issue.
The Ohio Housing Finance Agency has announced the dates of the remaining opportunities to collaborate and provide input on proposed changes to the 2016-2017 Qualified Allocation Plan.
Regional Public Forum (Athens)
Thursday, January 8, 2015
9:30am
COAD – Ohio Weatherization Training Center
1 Pinchot Lane Athens, Ohio 45701
Regional Public Forum (Toledo)
Thursday, January 22, 2015
9:30am
Toledo Public Library – Kent Branch
3101 Collingwood Blvd
Toledo, Ohio 43610
Regional Public Forum (Dayton)
Wednesday, January 28, 2015
12:30pm
Dayton Public Library – Main Branch
215 East Third Street
Dayton, Ohio 45402
Regional Public Forum (Cleveland)
Thursday, January 29, 2015
10:30am
Cleveland Public Library – Collinwood Branch
856 East 152nd Street
Cleveland, Ohio 44110
Public Hearing
Wednesday, March 18, 2015
1:00pm
Ohio Housing Finance Agency – Roger McCauley Board Room
57 E. Main Street
Columbus, Ohio 43215
Public Hearing (Formal)
Wednesday, April 15, 2015
1:00pm
Ohio Housing Finance Agency – Roger McCauley Board Room
57 E. Main Street
Columbus, Ohio 43215
OHFA will hold a DevCo Online Application User Training for individuals who will be completing the online application for the 2015 Housing Tax Credit Program. The training will be held on Tuesday, January 6, 2015 from 9:30 AM – 12:30 PM at the Ohio Department of Transportation (ODOT) Auditorium in Columbus.
A draft of the 2015 Housing Development Loan Guidelines has been posted to the OHFA website for public review and comment. Given the nature of the proposed changes to requirements and eligible use of this resource, the comment period has been extended to January 1, 2015 to gather additional feedback from development partners.