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Question from a Client:

Rose from Illinois


Question:  In an acquisition rehab say a tenant who is disabled moves into a regular unit because the disabled units are not yet completed. The tenant turned on the credits in the unit he moved into.  The tenant now needs to be transferred to a disabled unit. How does it [the credits] work?

Answer:  The credits follow the qualified household when they transfer on property.  When the tenant with disabilities transfer to the accessible unit, that unit becomes a qualified tax credit unit and the unit they are leaving becomes an empty unit.  In other words the credits follow the tenant when they transfer to the empty accessible unit.  The status of the units switch once the transfer occurs which means the old unit becomes an empty unit.  Once a qualified household moves into the empty unit, that unit will become a qualified unit.

The Social Security Administration has announced that there will be no COLA for 2016. 

Click this to see the full article on our Zeffert Blog


Press Releases  -- October 18, 2017

Social Security Announces 0.3 Percent Benefit Increase for 2017

Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 65 million Americans will increase 0.3 percent in 2017, the Social Security Administration announced today.

The 0.3 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 60 million Social Security beneficiaries in January 2017. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2016. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.

Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $127,200 from $118,500. Of the estimated 173 million workers who will pay Social Security taxes in 2017, about 12 million will pay more because of the increase in the taxable maximum.

Information about Medicare changes for 2017, when announced, will be available atwww.Medicare.gov. For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.

The Social Security Act provides for how the COLA is calculated. To read more, please visit www.socialsecurity.gov/cola.

NOTE TO CORRESPONDENTS: Attached is a fact sheet showing the effect of the various automatic adjustments.


The Notice reminds owners that tenants have certain rights against termination of leases that cannot be ignored just because a property now has tax credits and existing HUD residents may not qualify for LIHTC units. Even if tenants accept incentives to move, HUD will examine situations to be sure that the resident leaving was truly a voluntary choice.

Click HERE for the notice

HUD’s Office of Multifamily Housing has issued a memorandum titled Use of Marijuana in Multifamily Assisted Properties.  The memorandum, which is posted on the Multifamily Housing website, details how owners enforce the requirements found in the Controlled Substance Act and the Quality Housing and Work Responsibility Act of 1998.

Click this link to read the memorandum: Use of Marijuana in Multifamily Assisted Properties

These rates are used in Multi-family housing to calculate medical expenses for programs that calculate rent based on adjusted income and as an allowable expense to establish net income from a business for self employed persons. The medical rate is 23 cents a mile (down half a cent from 2014). The business use rate is 57.5 cents (up from 56 cents in 2014). These new rates are effective January 1st, 2015.

HUD released the 2012/13 Fiscal year annual report on Fair Housing to congress. Want to see how the industry is doing? 

Click on this to see the report as a PDF

On October 30, IRS published Revenue Procedure 2014-61. Among other items, it set the LIHTC and tax-exempt bonds volume caps for 2015.


For 2015, the state LIHTC ceiling will be the greater of $2.30 multiplied by the state’s population or $2,680,000.  While the $2.30 at the same level as in 2014, the small state minimum is increased a bit from the 2014 level of $2,635,000.


The state private activity bond cap for 2015 will be the greater of $100 multiplied by the state population, which is the same as 2014, or $301,515,000.  In 2014, the small state minimum was $296,825,000.


Click on this to see the Rev Proc

Effective February 1, 2015 the HUD Passbook Savings will change from 2% to .06%. 

Beginning February 1, 2015, Multifamily Housing will annually publish the passbook savings rate to be used for all certifications to replace the previously set rate of 2% with a rate reflective of the national average. The Office of Policy Development and Research publishes income limits on an annual basis to which owners must refer. Likewise, Multifamily Housing will publish the passbook savings rate, and its effective date,on a similar timeframe through a Housing program notice. Owners must begin using the new rate for all move-in, initial, annual, and interim certifications concurrent with the effective date provided. The provided effective date will allow for sufficient time to update software to include the new passbook savings rate.  

The passbook savings rate will be based on the national average provided by the Federal Deposit Insurance Corporation.


Click on this to see the HUD Notice



The attached memorandum signed by Benjamin Metcalf, Deputy Assistant Secretary for Multifamily Housing Programs, provides specific steps for owners and management agents who choose to implement a smoke-free policy.  Additionally, HUD’s Office of Lead Hazard Control and Healthy Homes (OLHCHH) has published a Smoke-Free Action Guide entitled “Change is in the Air – An Action Guide for Establishing Smoke-Free Public Housing and Multifamily Properties”.  The purpose of the guide is to further educate PHAs and owners and management agents of subsidized or market rate multifamily housing about the benefits of smoke-free policies and recommended best practices to follow for implementing smoke-free policies.  The guide is available for download from the Healthy Homes website by clicking HERE or directly by clicking HERE. Hard copies of the guide can be requested vie email at This email address is being protected from spambots. You need JavaScript enabled to view it.

2017 Social Security COLA announced October 18, 2017

Press Releases

Social Security Announces 0.3 Percent Benefit Increase for 2017

Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 65 million Americans will increase 0.3 percent in 2017, the Social Security Administration announced today.

The 0.3 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 60 million Social Security beneficiaries in January 2017. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2016. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.

Click HERE for more information


HUD had issued a memo in May on HUD Affirmative Fair Housing Marketing Plans (AFHMP). A memo issued in September  provides further details. Topics duscused in the memo include situations when owners must submit updates to existing AFHMPs to HUD for its approval.  The memo also specifies that an AFHMP is required for projects new to multifamily assistance, including projects transitioning to Project-Based Rental Assistance through the RAD Program.  Additionally, the guidance clarifies that owners adopting a new residency preference in their admission policies must submit a modified AFHMP to FHEO for approval. 


The Memo, which also includes the original May Memo can be found HERE.

Good news! HUD has recently issued a revisedTRACS 202D Monthly Activity Transmission Guide (MAT Guide). This will be of great interest to personnel involved with the management of HUD properties that use the TRACS system. As you will note as you read the newGuide, the 50059 and 50059-A transmission information that used to be in the old Chapter 9 of the 4350.3 has been transported to Chapter 7 of the new MAT Guide. Please note that the 202D is now live, and HUD properties will be required to convert from 202C no later than January 31, 2015. After that date, 202C transmissions will no longer be accepted.
The new MAT Guide can be obtained HERE

Following the release of a draft last December and a comment period ending in March, the IRS has published the finalized IRC Section 42 Audit Technique Guide. This will primarily provide information for IRS auditors tasked with completing audits of LIHTC property owners’ tax returns. However, it will also provide useful information for other industry personnel. It has several useful features such as compilations of industry terms and references to the tax code and other documents. This document does not replace the 8823 Guide, already heavily used by the industry, but rather complements it. As such, the new ATG has cross-references to the 8823 Guide in many places.



On July 14,2014 HUD published a notice on the Relocation Requirements under the Rental Assistance Demonstration (RAD) Program. The notice discusses the public
housing conversion process under the first component.
Click HERE for the notice
The IRS has issued two Revenue Procedures to provide guidance for casualty loss situations resulting from presidentially declared disasters. These cover the LIHTC and tax exempt bond programs.
The LIHTC §42 guidance is HERE
The Bond §142 guidance is HERE
Federal Register / Vol. 79, No. 158 / Friday, August 15, 2014 / Notices
"The February 28, 2013 OMB Area  definition update has not been  incorporated in this set of proposed FMRs due to the timing of the release and the availability of ACS data. HUD  will work toward evaluating the impact  of these new area definitions and discuss these findings in the final FY  2015 FMR publication, or, if that is not  possible, in a subsequent publication in January 2015."
HUD has released a new version of the form 50066, Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking. The new form can be found HERE.
Note: although the form has been updated with provisions and terminology consistent with the 2013 reauthorization of VAWA, it still only explicitly applied to HUD programs covered under VAWA 2005. We will look to HUD for further guidance on VAWA 2013 and the many new programs covered, including LIHTC, RD and HOME.
As reported on our website news HERE, the Social Security Administration had posted a notice that local offices would not provide benefit letters to verify social security benefits. They were going to require persons seeking these letters to get them through online or fax systems. Although the online system is very helpful and convenient for those who figure out how to use it, the policy created concerns for affordable housing professionals. Many programs do not have access to EIV and the SS info that it provides. This includes the LIHTC, RD and HOME, all of which generally require 3rd-party or source documentation for verifications. Even HUD’s EIV-using programs do not have access for new move-ins and other situations within EIV procedure call for 3rd-party verification of benefits. Also, most importantly, many social security recipients require in-person assistance from SSA experts on these sometimes complex matters.
Responding to feedback from stakeholders, SSA will continue to provide benefit letters from local offices until further notice. The reversal of this policy is very welcome.
Check HERE for the announcement from SSA

The Department of the Treasury is looking for comments on the IRS Form 8823. Written comments should be submitted by September 15, 2014.

Click HERE for more infomation

The ADA turns 24 years old! This month marks the 24th Anniversary of the Americans with Disabilities Act (ADA) - a landmark law.

Click HERE for more information

ADA 2010 now an option
Up until now owners of federally-funded properties have used the Uniform Federal Accessibility Standards (AFAS) to establish compliance with Section 504 requirements. In an announcement last month, HUD is also allowing the Americans with Disabilities Act (ADA) as amended in 2010 as a standard. There are some parts of ADA that HUD will not except, however. HUD’s notice explains the exceptions.
Click HERE for the announcement from HUD
Click HERE for further information on ADA 2012

HUD CPD has changed the 2014 Low HOME rent limits that were originally published earlier this month. They are still effective May 1, 2014.

If you downloaded the information from the HUD site earlier, be sure to re-check the limits before you implement them on May 1st, 2014. Your HOME projects may have adjusted rent limits. According to the CPD HOME rent limit page, "the only rents that were revised were Low HOME Rent Limits that should have been held harmless based on decreasing 50 percent rent limits. The 2014 Rent Limits have been updated to correct this error." Participating Jurisdictions will need to pay special attention to the revision as they approve rents for their HOME projects going forward.

Social Security Announces that SS Offices will no longer provide benefit letters for SS recipients. 


Click HERE for more information on how to verify SS benefits

HUD released new additions to their HOME Funds rental program FAQs!

HUD has released new Affirmative Fair Housing Marketing Plan forms 935.2a, 9352b and 9352c. The new forms have an expiration date of 12/31/16. These replace the previous versions, which expired 8/31/13. Owners should begin using these forms for new submissions and updates to the Plan.

The forms also comprise Appendix 1 of the HUD Handbook 4350.3 CHG-4. Owners should replace the forms in their electronic or paper copies of the Handbook.  
The forms can be found at the following links:
                                                                Multi-Family Housing 
                                              Single-Family Housing
                                      Condominiums or Cooperatives 

Grace Robertson, from the IRS, has released to Tax Credit industry personnel a draft Audit Guide. This guide, upon finalization, will replace a long defunct 1999 version. The comment period for this draft guide is until March 28, 2014. Please note: this will be a guide for IRS auditors. It is important not to confuse this with The 8823 Guide, which gives guidance on compliance at Tax Credit properties. 

Click here to get  a look at the Draft Audit Guide

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