Affordable Housing Connections
April 2021 Newsletter
April is Fair Housing Month
This year, the Department of Housing and Urban Development (HUD) celebrated the 53rd anniversary of the Fair Housing Act. This directive was signed into law on April 11, 1968, by President Lyndon B. Johnson. The Fair Housing Act prohibits housing discrimination because of race, color, religion, national origin, sex, disability, and family status. For more information about fair housing, visit HUD's webpage.
Even with more than 50 years of fair housing law, discrimination and unfair treatment still occur in some housing transactions. Housing discrimination can take many forms and is not always obvious. Read Examples of Housing Discrimination and learn more about Fair Housing Rights and Obligations.
The Industry Wants More! AHC's Education and Leadership Center and Hamline University
AHC's Education and Leadership Center and Hamline University announce the second offering of Course 1 of the Leadership in Affordable Housing Certificate (LAHC) for the Summer Semester (May-August 2021).
Registration is now open! The class size will be limited to a new cohort of 12 students. Click HERE for enrollment and financial aid information, found on our EDUCATION Tab.
The Certificate program will examine the roots of the nation's affordable housing crisis and seek to prepare the next generation of diverse community leaders to address this ongoing problem in two courses to be offered in 2021.
Course 1: The Affordable Housing Crisis. This course will examine the impacts of government policies on equity and affordability in the housing market and the successes and limitations of policies that have not fully addressed the housing crisis.
Course 2: Leadership in Affordable Housing Policy. This course will guide students in policymaking across multiple entities in government, industry, and the nonprofit sector through interactive case studies and the creation of original affordable housing policies.
The Certificate courses have been accredited through the Minnesota Office of Higher Education for a total of 8 credits applied as electives to any eligible Hamline Graduate School program. Students can take courses sequentially, no need to take Course 1 prior to Course 2.
2021 Income & Rent Limits
On Thursday, April 1, 2021, HUD released the 2021 Income Limits and simultaneously released Multifamily Tax Subsidy Program income limits for 2021, used to determine eligibility for low-income housing tax credit and tax-exempt bond properties.
On April 19, 2021, Minnesota Housing used the HUD published limits to compute FY2021 income and rent limits. You can locate the necessary income and rent limits on Minnesota Housing's website or click the link here to access http://www.mnhousing.gov/sites/multifamily/limits.
Affordable Housing Connections has updated income and rent limits accordingly. Please visit our website for further information. https://www.ahcinc.net/htclimits.html
In accordance with IRS requirements, rent limits are based on an imputed formula of 1.5 persons per bedroom. For example, to calculate the one-bedroom rent limit: add the one person income limit to the two person income limit, divide by two, multiply by 30% and divide by twelve. Rent is gross rent, which includes utilities paid by the tenant and other non-optional charges.
HUD states, the Low-Income Housing Tax Credit (LIHTC) program is administered by the Internal Revenue Service (IRS). Pursuant to an IRS revenue ruling, participating properties base their rents on the income limits that HUD is mandated to publish. However, HUD has no control over how LIHTC rents are set and has not required or suggested rent increases. HUD continues to encourage property owners to exercise compassion with respect to tenants affected by the COVID-19 pandemic and would be surprised that an owner would be so out of step with the moment in which we are living to raise rents at this time.
There is a forty-five (45) day grace period from the effective date to when the income and rent limits must be implemented. Grace period ends May 16, 2021.
Should you have questions surrounding these newly published limits at your Affordable
Housing Connections monitored property, please contact AHC here for further information.
HOME and National Housing Trust Fund limits for 2021 have not yet been published. We will notify you as soon as we receive them.
CDC Updates Eviction Moratorium FAQ
On April 13, the U. S. Centers for Disease Control and Prevention (CDC) released updated FAQs regarding the agency's federal eviction moratorium order, which has been extended through June 30, 2021.
WHAT SHOULD I DO?
Question: I work at a property that is set to open this Fall 2021. Because of The Cares Act and various types of unemployment income, I am struggling to determine what type(s) of unemployment are considered income. This lease up is extremely important because I must safeguard the investors credits with 100% eligible households. All these new codes are impossible to follow, can you please help me?
Answer: The table below provides a description of each unemployment code and whether or not they are to be considered income. Should you encounter different codes from those in this CHART or have difficulty deciphering which code is being used please reach out to your compliance department or monitoring agency for assistance. Help is only a phone call or email away!
Affordable Housing Connections
We deliver monitoring and consulting services to governmental organizations, property owners and managers; and education to individuals who aspire to leadership in the affordable housing industry. Our aim is to protect the investment of private equity and tax dollars and to ensure continued quality affordable rental housing.