The Kansas Housing Resources Corporation (KHRC) released a draft version of its 2021 LIHTC Compliance Policies and Procedures Manual. Public comments must be submitted to Katie Whitehead, director of housing compliance, at kwhitehead@kshousingcorp.org by September 22. The final copy is slated to be published in October. The most notable changes have been made in the following sections:  

Chapter 2:  

  • 2.1.3 – State Set Asides – Example added; 
  • 2.4 – Procorem reporting for existing LIHTC tenants for Acq/Rehab projects; and 
  • 2.4.1 – Examples: Corrections made to cert effective dates and Procorem entry. 

Chapter 3:  

  • 3.6 – Citizenship Requirements; 
  • 3.7 – Added information regarding live in aides and leases; 
  • 3.9 – Elderly Housing Exception – Clarifying language added; and 
  • 3.10 – VAWA. 

Chapter 4 (4.1):  

  • Student definition – Clarified enrollment can be in-person or online. 

Chapter 6:  

  • Income & Assets – References new Average Income set-aside; 
  • 6.4.1 – Employment Income – Types of Income Verifications – Clarifying language added  
  • to paragraphs A to E; 
  • 6.4.2.1 – Gig Income – New section; 
  • 6.4.5 – Periodic Payments – Verifications, clarification regarding 120-day rule; 
  • 6.4.6 – Income from Students – Information added regarding students receiving Section 8 assistance; 
  • 6.5.23 – Income Excluded by Federal Statue: Clarified ABLE accounts; 
  • 6.6.1 – Assets – Clarified Health Savings Accounts; and 
  • 6.6.2 – Expanded Cash Value of an Asset Example to include home used as Rental property. 

Chapter 7:  

  • 7.1 – NAUR paragraph for state set-asides removed. How to handle state set-aside targets exceeding the current income limit at recertification is discussed in Section 2.1.3 and 
  • 7.2 – Further guidance provided on completing Sample Form 18. 

Chapter 8 (8.8.4):  

  • Added clarifying information, including a note when HOME funds are involved. 

Chapter 9 (9.2):  

  • State level NAUR removed. Owner/agents should follow what is outlined in Section 2.1.3 regarding restoring the state set aside requirements. 

Chapter 11 (11.3):  

  • KHRC Homeless Program. 

Chapter 12:  

  • Property dispositions – LURA assignment and assumption required for ownership changes in addition to State Form 22. 

Chapter 17:  

  • State Audits – Rev Proc 2016-15 inspection details. 

Chapter 20 (20.22):  

  • Property Viability – specifically updated process for requesting changes to the LURA. 

Chapter 21:  

  • Harmonization information updated.