2020 compliance ohio housing policies and finance agency … · 2020-04-20 · page 4 —...

2020 Compliance Policies and Regulations Training

OHIO HOUSINGFINANCE AGENCY

— Introduction

COURSE OBJECTIVESThe objective of today’s training is to provide an overview of OHFA’s compliance policies, regulations and expectations so our partners can efficiently manage their projects and stay in compliance with OHFA and federal regulations.

What will be covered?• Multifamily basics• The Tax Credit Program• OHFA’s required forms and compliance reporting• Tenant file organization• OHFA Policies• Overview of VAWA and OHFA’s requirements• Monitoring and Reporting procedure

Who Should Attend?• Site staff• District/regional managers• Compliance staff• Owners• Developers

TABLE OF CONTENTSSection OneOHFA’s Multifamily Basics .................................................................................................................................... 6

Section TwoOHFA Forms ........................................................................................................................................................... 14

Section ThreeQualifying Households ........................................................................................................................................ 34

Section FourTenant Files Organizations And Recordkeeping ................................................................................................. 52

Section FiveOHFA Inspections .................................................................................................................................................. 56

Section SixViolence Against Women Act ................................................................................................................................ 62

Section SevenDevCo and Annual Reporting ................................................................................................................................ 71

Section EightOHFA’s New Policies .............................................................................................................................................. 75

— Compliance Policies and Regulations Training

The Ohio Housing Finance Agency facilitates the development, rehabilitation and financing of low- to moderate-income housing. The Agency’s programs help first-time homebuyers, renters, senior citizens, and others find quality affordable housing that meets their needs. OHFA has served as the state’s affordable housing leader, ensuring that Ohioans with low and moderate incomes have access to safe, quality and affordable housing.

OHFA was created in 1983 and assumed the duties of the Ohio Housing Development Board. The Agency started to allocate Low Income Housing Tax Credits (LIHTC) and monitor program compliance for the LIHTC program in 1987. OHFA became independent from the Ohio Department of Development on July 1, 2005.

OHFA is a self-supporting state agency governed by an 11-member board. The board includes the Director of the Ohio Department of Commerce, the Director of the Ohio Development Services Agency, and nine public members who represent various housing sectors and the public. Agency staff, led by an Executive Director, conduct the daily operations that drive OHFA’s mission.

Since 1983, OHFA has empowered more than 162,700 households throughout Ohio to achieve the dream of homeownership. As the allocating Agency for the federal Housing Tax Credit program, OHFA has allocated more than $7 billion in housing credits and supported financing for more than 157,800 affordable rental housing units since 1987.

OHFA uses federal and state resources to fund fixed-rate mortgage loans and provide financing for the development of affordable rental housing. The Agency relies on its partnerships with private sector, public sector, and nonprofit entities to serve first-time homebuyers, renters and populations with special housing

About the Ohio Housing Finance Agency

Sean W. Thomas Executive Director

Shawn Smith Chief of Staff

Betsy Krieger Training and Technical Assistance Administrator

Ashley Sweeney Trainer and Technical Assistance Coordinator

Web: www.ohiohome.orgPhone: 888.362.6432Fax: 614.644.5393

Join our mailing list at www.ohiohome.org.

— OHFA’s Multifam

ily Basics

SECTION ONE:OHFA’S

MULTIFAMILY BASICS


WHAT’S YOUR PROJECT’S FUNDING?

Low Income Housing Tax Credit (LIHTC):

The LIHTC program provides an incentive for the creation of public-private partnerships that produce affordable housing and increases the supply of quality affordable rental housing throughout the country.

HOME Investment Partnerships Program (HOME):

The HOME Program is an important resource for development of low-income housing. If the HOME program is used for rental housing, at least 90% of units assisted must be for households under 60% area median gross income (AMGI), with the remainder for households up to 80% AMGI. If there are more than five HOME-assisted units in a building, then 20% of the HOME-assisted units must be for households under 50% of AMGI.

Ohio Housing Trust Fund (OHTF): The OHTF provides funding to projects predominantly serving low- to moderate-income households with incomes at or below 50% AMGI. The OHTF gives preference to projects that benefit households with incomes at or below 35% of the AMGI for the county in which the project is located, as established by HUD.

National Housing Trust Fund (NHTF): The NHTF was established by Title I of the Housing and Economic Recovery Act of 2008 to increase and preserve rental housing as well as increase homeownership for very low- and extremely low-income families, including those experiencing homelessness, through formula grants to states.

Davis-Bacon labor standards do not apply to NHTF; however, Ohio Prevailing Wage may apply.

Multifamily Bond Program: The multifamily bond program provides lower-cost debt financing for the acquisition, construction and substantial rehabilitation of multifamily housing and single-family housing for low- and moderate-income residents through the issuance of tax- exempt mortgage

revenue bonds. The program can be effective as a sole financial resource, or combined with non-competitive 4% LIHTC.

Department of Medicaid Subsidy Demonstration (ODMSD): ODMSD is a partnership between The Ohio Department of Medicaid (ODM) and the Ohio Housing Finance Agency expanding affordable housing opportunities to persons with disabilities. This funding targets extremely low-income people with disabilities who are exiting facility-based settings and require accessible housing. The operating assistance covers the difference between 30% of the tenant’s income and the units 50% AMGI rent level calculated for the LIHTC program.

Ohio 811 Project Rental Assistance: The purpose of the 811 program, as authorized under the Frank Melville Supportive Housing Investment Act of 2010, is to allow households composed of one or more persons with a disability, who are at least 18 but less than 62 years of age and are extremely low income, to live as independently as possible by subsidizing rental housing opportunities and providing access to supportive services.

YourProperty

OHFA SourcesRequirements

LIHTC

HOME

OHTF

MFBond

Students

Rent

Income


ily Basics

PARTNERS INVOLVED

The roles and responsibilities of a developer:• Research and prepare applications for OHFA multifamily projects.• Obtain financing for developments.• Oversee:

→ Construction of new projects → Acquisition of existing buildings → Rehabilitation of acquired buildings

The roles and responsibilities of an investor/syndicator:• Work with developers during the application process• Pool monies from various sources for investment into housing developments• Serve as an asset manager for projects

The roles and responsibilities of an owner:• Ensure that the developments/properties are run within compliance guidelines as outlined by the IRS and the state

housing credit agency• Ensure that the physical asset is maintained• Ensure that units are occupied by qualified households

The roles and responsibilities of the management company:• Conduct the day to day operations of the property• Maintain the physical asset• Maintain the documentation of qualified households• Prepare reports on the owner’s behalf

The roles and responsibilities of OHFA:• Allocate credits each year for the development or preservation of affordable housing• Monitor developments/properties for compliance during compliance and extended use periods• Refer items of uncorrected non-compliance to the IRS; Refer all physical non-compliance to the IRS• Provide training to owners/managers/agents in the state of Ohio• Work with developments/properties to achieve and maintain compliance.


LIHTC PROGRAM

What is the LIHTC program?• The program was established by the Tax Reform

Act of 1986.• It is regulated by the Internal Revenue Code

Section 42 with monitoring guidance given by the IRS 1.42-5.

• The program is monitored by individual state housing finance agencies such as OHFA.

What are tax credits?• Tax credits are dollar-for-dollar reductions in the

tax liability of the owner in exchange for monies invested into LIHTC developments.

• The LIHTC program allows private investors to enter the affordable housing market.

• Tax credits are awarded annually based on the state’s population. In 2019, OHFA allocated more than $40.1 million in federal housing tax credits to 52 projects consisting of 4,434 units.

• Qualified Allocation Plan (QAP): → The QAP is developed annually by each

state and provides developers with information on the LIHTC program including the minimum development requirements, competitive scoring and underwriting criteria.

→ The plan contains rules specific to certain housing needs and state preferences.

→ Developers prepare applications based on the items identified in the QAP to request tax credit money to build new properties or to acquire/rehabilitate existing properties.

Who is involved in a tax credit deal?

This program require teams of differently skilled people to create successful projects. This includes the developers, investors, syndicators, owners, management companies, state agencies, and the Internal Revenue Service.

LIHTC Time Periods

The Credit Period (IRC 42(f )) is usually 10 years following the date the building was placed in service. It is the time period in which the owners of the development/ property receive tax credits, which they can then apply to their respective income tax liabilities.

The Compliance Period (IRC 42(i)(1)) is the duration of the credit period plus 5 years. The compliance period is 15 years beginning with the first year of the tax credit period (placed in service year or subsequent year if deferral was elected).

The Extended Use Period (IRC 42(h)(6)(D)) restricts the eligibility of developments to receive an allocation of Tax Credits to only those developments that agree to keep the property income and rent restricted for an extended period of time. The term for this period is a minimum of 15 years in addition to the 15 year compliance period. This results in a total term of 30 years for the affordability period.

What Qualifies a LIHTC Unit?

When owners apply for tax credits development/property, they commit to specific incomes and rent levels. These tax credit units are the building blocks of qualified projects.

To be qualified as a housing tax credit unit: • The households must be certified to document that

their income falls below certain levels • Units must be suitable for occupancy• Units must be non-transient• Units may not be occupied by households where

all members are full-time students• Households must be rent-restricted

Compliance Tip: OHFA’s QAP contains information on Housing Finance Agency (HFA) and IRS requirements that will help owners/property managers stay compliant.


ily Basics

Loss of Housing Tax Credits

The credits generated by units first occupied by qualified residents during the first year of the credit period are more valuable than those produced by those not qualified until after year one. For a unit first occupied by a qualified household during the first year of the credit period, the owner may take 1/10th its total credit each year of the 10-year credit period. One-third of the tax credit taken is referred to as the accelerated portion. If a unit is not occupied by a qualified household until after the close of year one, the owner may take 1/15th of its total credit each year of the 15-year compliance period, beginning the year it first qualified for the LIHTC program.

An easier way to explain the impact of this rule may be to say that for a unit first qualified after the first year of the credit period, the owner may only take 2/3rds of its projected annual credit every year beginning with the first year it is occupied by a qualified resident and ending with year 15 of the compliance period. There is no accelerated portion because the owner is denied the right to take a unit ’s credit one-third faster than it is earned like they do for units qualified during year one.

Consequence of Noncompliance

Noncompliance during the first year of the compliance period can be a serious problem. In some cases this may result in significant financial loss to the property owner. The owner may be forced to refund monies provided by equity partners or investors. (i.e.. credit adjuster) and/or subject to tax credit recapture by the IRS.


Minimum Set Asides

The minimum set aside (MSA) is the minimum number of LIHTC units that must be reserved for a project to produce a tax credit. In Ohio, there are three minimum set-asides:

• 40/60 – meaning 40% of the units in a project will be income and rent restricted to households at/or below 60% of the area median gross income (AMGI)

• 20/50 – meaning 20% of the units in a project will be income and rent restricted to households at/or below 50% of AMGI

• Average Income (AI) – The Consolidated Appropriations Act, of 2018, also known as the omnibus spending bill created a new IA set aside. At least 40% of the units must be both rent restricted and occupied by individuals whose incomes do not exceed the 60% AMGI. The average of the designated imputed income limits cannot exceed 60% of AMGI. Income averaging applies to the designated income/ rent levels of the units, not the incomes of individual tenant households

OHFA’s Qualified Allocation Plan (QAP), outlines requirements for AI projects: à Unit designations will be documented in the Carryover Agreement or 42m Letter of Eligibility but will not be

recorded in the restrictive covenant. à If IRS Form 8609 is issued and recorded, the project is not eligible for Average Income set aside à Unit designations must be equally distributed among bedroom sizes à Projects owners must select yes to the 8b election on IRS Form 8609 à Unit designations are set at 10% increments between 20%-80% and can float within the project or building à Projects approved before 2018 (2015-2017) must consist of 100% low income units

This average income set-aside allows LIHTC units to serve households earning as much as 80 percent of AMGI, as long as the average imputed income/rent limit of the property is 60 percent or less of AMGI. Higher rents charged to households with incomes above 60 percent of AMGI will have the potential to offset the lower rents for households living in units designated at lower income levels. Average income preserves rigorous targeting to low-income households, while providing greater income-mixing potential.

In addition to the minimum set-aside, a project may have additional income and rent restrictions that stem from either the tax credit application made to OHFA or from other financing secured to build the property. The most restrictive of these set-asides will determine how units are leased.

60% AMI 60% AMI

60% AMI 60% AMI

40/60

50% AMI 50% AMI

20/50

20% 50%

60% 80%

20%

80%

70% 60% 80%

9 total units x 40% = 3.6 units

20% + 50% + 60% + 80% / 4 = 52.5%

This shows that at least 4 units are needed to meet the 40% requirement.

4 units with average ≤ 60% meets the minimum set aside. OHFA requires the entire projects awarded before 2018 to average at 60% or below. The 9 units average to 57.8%.


ily Basics

IMPORTANT DOCUMENTATIONIn order for a project to run efficiently, these documents need to be readily available to property management staff.

8609 Form(s) – Issued for each building in tax credit project. This form can be used to obtain a housing credit allocation from the housing credit agency and certify certain information such as the 8b election, the building’s minimum set aside and placed in service date.

Final Affordable Housing Funding Application (AFHA) – The AFHA summarizes the project characteristics such as the type of funding requested, number of units and buildings and their types (low income, market and employee), and the various income and restrictions for each funding type.

Restrictive Covenant and Amendments – A Restrictive Covenant imposes a restriction on the use of land. The Restrictive Covenant is an agreement between the owner and a housing finance agency. The income and rent limits are included in these documents.

Housing Development Assistance Program (HDAP) Funding Agreement (if applicable) – This is an agreement between OHFA and the HDAP recipient and Limited Partnership. The document specifies the income and rent limits for HDAP funded programs such as HOME, OHTF and NHTF.

Affirmative Fair Housing Marketing Plan (AFHMP) – The purpose of the AFHMP is to help applicants and residents receive equal housing opportunities regardless of race, color, national origin, religion, sex, familial status, or disability. The AFHMP helps owners/agents (respondents) effectively market the availability of housing opportunities to individuals of both minority and non-minority groups that are least likely to apply for occupancy. Affirmative fair housing marketing and planning should be part of all new construction, substantial rehabilitation, and existing project marketing and advertising activities.

Tenant Selection Plan (TSP) – Owners must develop and make public written tenant selection policies and procedures that include descriptions including but not limited to: eligibility requirements, income limits for admission, and VAWA information.

VAWA Emergency Transfer Plan – This plan identifies who is eligible for an emergency transfer, the documentation needed to request an emergency transfer, confidentiality protections, how an emergency transfer may occur, and guidance to tenants on safety and security.

Inspection Certifications and Maintenance Records – for elevators, sprinklers, generators etc.

Utility Allowances – An average monthly cost for the utilities paid by the resident. Utility allowances must be current and, per IRS regulation 1.42.10, allowances must be updated annually. 1.42-10 (a) Inclusion of utility allowances must be in the gross rent. If the cost of any utilities (other than telephone, cable and internet) for a residential rental unit are paid directly by the tenant(s), the gross rent for the unit includes the applicable utility allowance determined under this section.

What Utility Allowance should I use?Utility allowances are given to residents to encourage residents to conserve energy since they pay for what is used. The utility allowance is a building rule for the LIHTC program. On July 29, 2008, the IRS issued updates to the Utility Allowance (UA) regulation (IRS Regulation 1.42-10) with additional UA methods. These additional UA methods are included in the final regulation in addition to the previously allowable methods. OHFA accepts the following utility methods as defined in IRS Regulation 1.42-10:

• USDA Rural Development (RD) Assisted Building → If a building receives assistance from Rural Development, the RD Utility Allowance must be used. → If any resident in a building receives assistance from RD, the RD Utility Allowance must be used for the entire

building.• HUD

→ If the building is HUD regulated and there is no RD assistance, the HUD utility allowance is used if any unit in the building is HUD regulated


Reference Documents

The following documents and resources should be used by multifamily property owners and management companies to ensure compliance with federal regulatory requirements:

• LIHTC à IRS 8823 Audit Guide- Definitions of non-

compliance for housing finance agencies. à IRS Section 42- general rules for the tax

credit program à IRS Revenue Ruling and Revenue

Procedures à IRS Notices and Newsletters

• USDA Rural Development à Rural Development (RD)- HB-2-3560-

Multi-family Housing Asset Management Handbook

• HOME à 24 CFP Part 92- HOME Investment Partnerships Program- Compliance in HOME Rental Properties: A Guide for

Property Owners• Multiple Programs

à HUD Handbook 4350.3 à Chapters 3– eligibility for assistance and occupancy à Chapter 5– determining income and calculating rent à HUD 4350.3 REV-1 Change 4 Chapter 5 Exhibits 5-1 and 5-2- income and assets inclusions/exclusions à HUD notices à HUD Listserv

• Public Housing Authority (PHA) → If a resident receives HUD rental assistance (Section 8 Housing Choice Voucher), the PHA utility allowance must

be used for that unit → For properties with HOME funds committed on or after August 23, 2013, the PHA estimate or other estimates that

are not project-specific cannot be used for the HOME units.• OHFA approved utility company estimates• OHFA approved HUD Utility Schedule Model• OHFA approved Engineer’s Energy Consumption Model

Compliance Tip: Check for utility allowance changes quarterly (every 90 days). If the PHA UA amount has changed, it is imperative that the rent for tenants are updated within 90 days of the change. These changes also need to be updated in DevCo. Refer to OHFA's utility allowance policy.


ily Basics

SECTION TWO:OHFA FORMS


Form 8609(Rev. May 2018)Department of the Treasury Internal Revenue Service

Low-Income Housing Credit Allocation and Certification

▶ Go to www.irs.gov/Form8609 for instructions and the latest information.OMB No. 1545-0988

Part I Allocation of Credit

Check if: Addition to Qualified Basis Amended Form A Address of building (do not use P.O. box) (see instructions) B Name and address of housing credit agency

C Name, address, and TIN of building owner receiving allocation

TIN ▶

D Employer identification number of agency

E Building identification number (BIN)

1 a Date of allocation ▶ b Maximum housing credit dollar amount allowable . 1b

2 Maximum applicable credit percentage allowable (see instructions) . . . . . . . . . . 2 %

3a Maximum qualified basis . . . . . . . . . . . . . . . . . . . . . . . . 3a b Check here ▶ if the eligible basis used in the computation of line 3a was increased under

the high-cost area provisions of section 42(d)(5)(B). Enter the percentage to which the eligiblebasis was increased (see instructions) . . . . . . . . . . . . . . . . . . . 3b 1 %

4 Percentage of the aggregate basis financed by tax-exempt bonds. (If zero, enter -0-.) . . . 4 % 5 Date building placed in service . . . . . . . . . . . . . . . . ▶

6 Check the boxes that describe the allocation for the building (check those that apply): a Newly constructed and federally subsidized b Newly constructed and not federally subsidized c Existing building d Sec. 42(e) rehabilitation expenditures federally subsidized e Sec. 42(e) rehabilitation expenditures not federally subsidized f Allocation subject to nonprofit set-aside under sec. 42(h)(5)

Signature of Authorized Housing Credit Agency Official—Completed by Housing Credit Agency Only

Under penalties of perjury, I declare that the allocation made is in compliance with the requirements of section 42 of the Internal Revenue Code, and that I have examined this form and to the best of my knowledge and belief, the information is true, correct, and complete.

▲

Signature of authorized official

▲

Name (please type or print)

▲

Date

Part II First-Year Certification—Completed by Building Owners with respect to the First Year of the Credit Period

7 Eligible basis of building (see instructions) . . . . . . . . . . . . . . . . . . 7 8a Original qualified basis of the building at close of first year of credit period . . . . . . . 8a

b Are you treating this building as part of a multiple building project for purposes of section 42 (see instructions)? . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

9a If box 6a or box 6d is checked, do you elect to reduce eligible basis under section 42(i)(2)(B)? Yes No b For market-rate units above the average quality standards of low-income units in the building, do you elect

to reduce eligible basis by disproportionate costs of non-low-income units under section 42(d)(3)(B)? . ▶ Yes No 10 Check the appropriate box for each election.

Caution: Once made, the following elections are irrevocable. a Elect to begin credit period the first year after the building is placed in service (section 42(f)(1)) ▶ Yes No b Elect not to treat large partnership as taxpayer (section 42(j)(5)) . . . . . . . . . . ▶ Yes c Elect minimum set-aside requirement (section 42(g)) (see instructions):

20-50 40-60 Average income 25-60 (N.Y.C. only) d Elect deep rent skewed project (section 142(d)(4)(B)) (see instructions) . . . . . . . . . 15-40

Under penalties of perjury, I declare that I have examined this form and accompanying attachments, and to the best of my knowledge and belief, they are true, correct, and complete.

▲

Signature

▲

Taxpayer identification number

▲

Date

▲

Name (please type or print)

▲

First year of the credit period

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 63981U Form 8609 (Rev. 05-2018)

REQUIRED FORMSIRS Form 8609

SAMPLE

— OHFA Forms

Tenant Income Certification

S AM

PL E

OHIO HOUSINGFINANCE AGENCY Tenant Income Certification

Report generated on Page 1 of 2

PART I - UNIT INFORMATIONMove-In Date: Certification Date:

Current Household Size: Project Name:Building ID#:Address:

Unit: # Bedrooms: Square Footage: County:

PART II - HOUSEHOLD COMPOSITION

Last Name First Name and Middle Initial Gender Relationship to

Head of Household Date of Birth F/T StudentLast four digital of Social Security or

Alien Registration No.

PART III - INCOME OTHER THAN ASSETSMember (A) Employment

Wages(B) Social

Security/SSI(C) Pensions (D) Public

Assistance(E) Child Support

(F) Other Income

(G) Income other than Assets

Totals

PART II - HOUSEHOLD COMPOSITION

Member (H) Type of Assets

(I) Current/Imputed

(J) Cash Value of Assets

(K) Annual Income from

Assets

(L) Total Imputed Income from Assets if (J) is over $5,000

(M) Income fromAssets

Totals under $5,000 times current passbook rate of 0.06% =

PART V - TOTAL ANNUAL HOUSEHOLD INCOME FROM ALL SOURCES

TOTAL ANNUAL HOUSEHOLDINCOME FROM ALL SOURCES:

FRANKLIN County, 3 Household MembersCertification Date:

Income Equates to: Maximum Income Limit for Household:

HH Meets Income Restriction at: 140% of AMGI (Income Limit x 140%):Is Income > 140% Level?

S AM

PL E

OHIO HOUSINGFINANCE AGENCY Tenant Income Certification

Report generated on Page 2 of 2

PART VI - RENT

Tenant Paid Rent: Other Non-Optional ChargesUtility Allowance: Housing Assistance Payment:

GROSS RENT FOR UNIT(Tenant Paid Rent + Utility Allowance)

Rent Assistance Type:Rent Equates to:

Maximum Rent Limit for this Unit: Unit Meets Rent Restriction at:

PART VII - STUDENT STATUSAre all occupants full time students? Student Explanation:

SIGNATURES

The information on this form will be used to determine maximum income eligibility. I/We have provided for each person(s) set forth in Part II acceptable verification of current anticipated annual income. I/We agree to notify the landlord immediately upon any member of the household moving out of the unit or any new member moving in. I/We agree to notify the landlord immediately upon any member becoming a full time student.

Under penalties of perjury, I/we certify that the information presented in this certification is true and accurate to the best of my/our knowledge. The undersigned further understands that providing false representations herein constitutes an act of fraud. False, misleading or incomplete information may result in the termination of the lease agreement.

I/We certify that the information in this tenant certification is true and correct for both the signature and certification dates. Should there be any change in any information contained in this tenant certification form prior to the certification date, I/We agree to immediately notify management of the changes.

I/We certify that my/our income for the period starting and ending is: .

Signature of Leasee Date Signature of Leasee Date

Signature of Leasee Date Signature of Leasee Date

Based on the representations herein and upon the proofs and documentation required to be submitted, the individual(s) named in Part II of this Tenant Income Certification is/are eligible under the provisions of Section 42 of the Internal Revenue Code, as amended, and the Restrictive Covenant (if applicable), to live in a unit in this Project.

Signature of Owner/Agent Date


Tenant Sworn Income and Asset Statement - Page 1

SAMPLE


Applicant / Tenant Sworn Income and Asset Statement

PC-E01 | Revised on 04/20/2020 Page 1 of 2

NOTE: All household members 18 years of age or older are required to complete a separate income statement. All applicable questions must be completed in their entirety.

Name: S.S.# (Last four digits):

Date:Document YES answers with third party verification.

INCOME

Income Sources I have or receive the following:(Check YES or NO) Monthly Amount Notes

Job 1 YES ☐ NO ☐Job 2 YES ☐ NO ☐Self Employment YES ☐ NO ☐

Includes digital income sources such as and others:App Based Driving Services (e.g. Uber, Lyft, Doordash); Sales with E-commerce (e.g. Shopify, Ebay, Etsy); Video-based platforms (e.g. Youtube Influencer)

Social Security YES ☐ NO ☐Supplemental Security Income (SSI) YES ☐ NO ☐Pension / Veteran’s Administration YES ☐ NO ☐TANF/ AFDC YES ☐ NO ☐Unemployment Benefits YES ☐ NO ☐Workers Compensation YES ☐ NO ☐Educational Financial Assistance YES ☐ NO ☐Other: YES ☐ NO ☐

Do you receive regular or periodic payments from: Amount Frequency

Persons not Living in the Unit? YES ☐ NO ☐Holder/Provider

Trust, Annuity or Other Claims? YES ☐ NO ☐Holder/Provider

Peer-to-Peer Payment systems? YES ☐ NO ☐(e.g. Paypal, Venmo,Blockchain, Square, etc.) Holder/Provider

Do you currently receive Assistance with your housing payment? YES ☐ NO ☐If yes; Agency Name?

Do you HAVE court-ordered or an agreement for child support or alimony?(This means there is an order for you to receive child support or alimony, not pay support to someone else)

YES ☐ NO ☐ Ordered Amount:

Are you currently receiving child support or alimony? YES ☐ NO ☐Amount Received:

Have reasonable efforts to collect the amounts due, including filing with courts or agencies responsible for enforcing payments, been made? YES ☐ NO ☐ N/A ☐

List State and County where granted.Are you a student (either full or part-time) enrolled in an institution of higher learning? YES ☐ NO ☐

— OHFA Forms

Tenant Sworn Income and Asset Statement - Page 2

SAMPLE


Applicant / Tenant Sworn Income and Asset Statement


ASSET SOURCES

YES ☐ NO ☐ Do you have a Checking Account?6 Month Avg. Balance $_________ Interest Rate __________

YES ☐ NO ☐ Do you have a Savings/Holiday Account? Balance $_________ Interest Rate __________YES ☐ NO ☐ Do you have a Certificate of Deposit (CD)? Cash Value $_________ Interest Rate __________YES ☐ NO ☐ Do you have a Direct Express ® Card?

(or any card where benefits or pay are deposited) Balance $_________ Interest Rate __________YES ☐ NO ☐ Do you have Cash on Hand? Amount $_________YES ☐ NO ☐ Do you have Cryptocurrency? (e.g. Bitcoin) Cash Value $_________ Annual Earnings $_________YES ☐ NO ☐ Do you have Internet Based Funding? (e.g. Go Fund Me) Cash Value $_________ Annual Earnings $_________YES ☐ NO ☐ Do you have Stocks, Bonds or Annuities? Cash Value $_________ Annual Earnings $_________YES ☐ NO ☐ Do you have Money Market or Mutual Funds? Cash Value $_________ Annual Earnings $_________YES ☐ NO ☐ Do you have IRA, 401K, or Keogh Accounts? Cash Value $_________ Annual Earnings $_________YES ☐ NO ☐ Do you have Treasury Bills? Cash Value $_________ Annual Earnings $_________YES ☐ NO ☐ Do you have a Safety Deposit Box? What is held in the Box? _____________________ Cash Value $_________YES ☐ NO ☐ Do you have any Personal Property held as on Investment? ** Cash Value $_________YES ☐ NO ☐ Do you own a Home, Rental Property or other Capital Investments?

(Market Value less unpaid balance and selling costs = Cash Value) Cash Value $_________Current Status/Intention: ☐ Keeping ☐ Selling ☐ Renting ☐ Being Foreclosed ☐ Giving AwayNotes: __________________________________________________________________________________

YES ☐ NO ☐ Have you received any Lump Sum Amounts? (e.g. inheritances, capital gains, lottery winnings, insurance settlements)When: ___________________________ Amount: $___________________________

YES ☐ NO ☐ Do you have Whole Life Insurance or Universal LifeInsurance policies? Cash Value $_________ Annual Earnings $_________

YES ☐ NO ☐ Have you sold, given away or otherwise transferred ownership of assets within the last two (2) years?If yes, list items: _______________________________________ Date: _____________________________

YES ☐ NO ☐ Are there minor children in the household that have any assets (Savings Account, Certificate of Deposit, Savings Bond(s), etc.)?If yes, please provide:Type: _______________ Value: $_____________ Where Held: ____________ Annual Yield: ________________Type: _______________ Value: $_____________ Where Held: ____________ Annual Yield: ________________Type: _______________ Value: $_____________ Where Held: ____________ Annual Yield: ________________Type: _______________ Value: $_____________ Where Held: ____________ Annual Yield: ________________

Total of Net Family Assets $_____________ (Total Value of Assets Listed Above)**Personal property held as an investment may include, but is not limited to, gem or coin collections, art, antique cars, etc. Do not include necessary personal property such as, but not limited to, household furniture, daily-use autos, clothing, assets of an active business, or special equipment for use by the disabled.

The information provided on this form will be used to determine maximum income eligibility.

Under penalties of perjury, I certify that the information provided herein is true and accurate to the best of my knowledge. The undersigned further understands that providing false representation herein constitutes fraud. False, misleading or incomplete information may result in the termination of the application or lease agreement.

Signatures:

Signature of Applicant/Lessee Date

Owner/Management Agent Signature Date


Student Certification

SAMPLE

OHIO HOUSINGFINANCE AGENCY Student Certification


Applicant/Resident:

TO BE COMPLETED BY ALL APPLICANTS/RESIDENTS OVER THE AGE OF 18

Yes No

Are you a part or full-time student? ☐ ☐“Student” includes those attending public or private elementary schools, middle or junior high schools, senior high schools, colleges, universities, technical, trade, or mechanical schools, but does not include those attending on-the- job training courses or those pursuing a GED. If you are not sure, please mark “yes” and the property management company will verify your student status.

If you answered NO, please skip the following questions and sign below.

If you answered Yes, please complete the following questions: Yes No

1. Are you a part-time student? ☐ ☐2. Are you a full-time student? (Will you or have you attended school for five months or more this calendar year with a full-time status?) ☐ ☐3. Are you disabled? ☐ ☐

a. If yes, were you receiving Section 8 assistance as of November 30, 2005 ☐ ☐4. Are you a graduate or professional student? ☐ ☐5. Are you over 23 years of age? ☐ ☐6. Are you a veteran of the United States military? ☐ ☐7. Are you receiving any financial assistance to pay for your education? ☐ ☐8. Will you be living with your parents? ☐ ☐

If no:a. Are your parents receiving or eligible to receive Section 8 assistance? ☐ ☐b. Are you claimed as a dependent on your parent’s tax return? ☐ ☐

9. Are you married? ☐ ☐10. Do you have a dependent child? ☐ ☐11. Were you an orphan or a ward of the court through the age of 18? ☐ ☐12. Receiving assistance under Title IV of the Social Security Act (e.g.TANF) ☐ ☐13. Enrolled in government-sponsored job training program (e.g. Job Corp, AmeriCorp) ☐ ☐14. The Individual has been verified during the school year in which the application is submitted as either an unaccompanied youth who

is a homeless child or youth. ☐ ☐

Signature Date


— OHFA FormsLOW INCOME HOUSING TAX

CREDIT LEASE ADDENDUM

This Low Income Housing Tax Credit Lease Addendum (the “Addendum”) is entered into by

(the “Owner”) and (referred to herein singularly or jointly as the “Tenant”) and is hereby

incorporated into and modifies that lease agreement between Owner and Tenant (the “Lease”) for the premises located at

(the “Premises”).

RecitalsWhereas, Owner and Tenant acknowledge that the Premises is subject to the rules and regulations of the Federal Low Income

Housing Tax Credit Program as set forth in Section 42 of the Internal Revenue Code (the “Program”) and as administered by the Ohio Housing Finance Agency (the “Agency”);

Whereas, the Program provides for a specific maximum monthly rent that may be charged for the Premises, which amount is subject to an annual adjustment based on changes in area median incomes and/or utility allowances, as determined by the United States Department of Housing and Urban Development;

Whereas, the Program requires the Premises be leased to “Qualified Households,” as defined by Section 42 of the Internal Revenue Code, that may not exceed certain income limitations and are subject to household composition and student status requirements;

Whereas, Owner and Tenant agree to and are required to comply with all Program requirements as interpreted and enforced by the Agency; and

Whereas, Owner and Tenant each receive material benefits from participation in the Program.

Terms of AddendumNow, therefore, in consideration of the foregoing, Owner and Tenant agree as follows:

1. Tenant Protections. Owner acknowledges and agrees that the Lease is subject to the provisions of Section 42 of the Internal RevenueCode and Ohio Law, including, without limitation, the Fair Housing Act, the Ohio Fair Housing Act, the Violence Against Women Act, andthe Ohio Landlord Tenant Act, all as may be amended from time to time.

2. Termination or Nonrenewal of Lease. Owner may not terminate the tenancy or refuse to renew the Lease or rental agreement ofTenant except for good cause, which includes, but is not limited to, serious or repeated violations of the material terms and conditionsof the Lease or house rules, or a violation of applicable federal, state, or local law. In addition to any provision of Ohio Law governing theeviction of a tenant, Owner must take the following actions before terminating or refusing to renew the Lease.

a. Minor Violations. Prior to terminating or refusing to renew the Lease for a Minor Violation, which shall include those violationsnot related to health, safety, criminal activity, actions by the Tenant creating a hostile environment for other tenants of the Owner,inflicting damage to the Premises or property of Owner, or Program eligibility issues caused by Tenant’s misrepresentation orfailure to provide required information, the Owner must first deliver written notice to the Tenant supplying sufficient details of theviolation to adequately inform Tenant of its scope and provide a reasonable period of time, but in no case less than thirty (30)days from the date notice is delivered, for the Tenant to cure the violation. The provisions in this section are intended to be inaddition to any termination procedures provided for by Ohio law, including but not limited to issuing the notice required by OhioRevised Code 1923.04.

b. Serious Violations. Owner is not required to provide a cure period or any additional notice, other than what is required by OhioLaw, prior to terminating or refusing to renew the Lease if Tenant has committed a Serious Violation, which shall include thoseviolations related to nonpayment of rent, health, safety, criminal activity, actions of the Tenant that create a hostile environmentfor others, damage to the Premises or property of Owner, and Program eligibility issues caused by Tenant’s failure to providecomplete, true and accurate information necessary to certify Program eligibility or report changes in status as set required bythe terms of this Addendum.

Page 1 of 2Effective 1/1/2020


LIHTC Addendum

SAMPLE


3. Occupancy of Premises. Tenant must reside in the Premises and the Premises must be the Tenants sole place of residence. Tenantshall use the Premises exclusively as a private dwelling for himself/herself and those individuals listed on the Lease. Tenant agreesnot to allow others to occupy the Premises until and unless the Owner has approved such occupancy in writing. Tenant agrees not tosublet or assign the Premises or any portion thereof or to allow any roomer or boarders to occupy the Premises for any period of time.

4. Need Based Relocation. If the Premises contains accessibility features and those features are not needed by Tenant to address asubstantial need of the Tenant, Tenant agrees, upon reasonable notice and at no cost to the Tenant, to relocate to another comparablepremises made available by Owner, should another Tenant need a unit with accessibility features.

5. Income Eligibility and Certification. Upon request from Owner and at least on an annual basis, Tenant and any occupant of thePremises over the age of 18 agree to promptly supply complete, true and accurate information related to household composition,student status, annual income, and to otherwise fully cooperate in the Program certification and recertification process.

6. Tenant Obligation to Report Changes. Tenant agrees to promptly notify owner of any material change in household income, thenumber of persons residing within the Premises, or the enrollment of any member of the household as a full-time student.

7. Inspection. In addition to any right of entry or inspection set forth in the Lease, Owner shall have the right to periodically inspect thePremises and permit representatives of any entity with a regulatory interest in the Premises to enter and inspect the Premises withoutinterference. Owner shall provide at least 24 hours’ notice to Tenant for such regulatory inspections.

8. Conflict. In the event of a conflict between the terms of the Lease and the terms of the Addendum, the terms of the Addendum shallcontrol with the exception of any Lease term or addendum that is required by an Agency or Department of the United States of America.

This Addendum has been executed by the Tenant and a duly authorized representative of Owner.

Tenant Signature

Date Owner Signature

Tenant Printed Name Title

Date

Tenant Signature

Date

Tenant Printed Name

Page 2 of 2Effective 1/1/2020

[Insert Company Name Here]

SAMPLE

LIHTC Addendum - Page 2

— OHFA FormsOHIO HOUSINGFINANCE AGENCY

Supporting Document from Public Housing Authority for Residents/ Applicants Receiving

Section 8 Housing Assistance Payment


Release: I hereby authorize the release of the requested information. Information obtained under this consent is limited to information that is no older than 12 months. There are circumstances that would require the owner to verify information that is up to 5 years old, which would be authorized by me on a separate consent attached to a copy of this consent.

Applicant/Resident Date

You do not have to sign this form if either the requesting organization or the organization supplying the information is left blank.

Name/Title of Person Supplying Information Firm/Organization

Signature Date

Phone # Fax # Email Address

To Be Completed By Owner/Owner Representative

Head of Household Name: Head of Household Social Security Number:

The applicable income limit under section 42(g) for family size of residing in the County of

is $ on (effective date of applicable income limit).

In accordance with IRS Regulation 1.42-5 (b)(vii) the following is submitted as documentation to support the low- income tenant income certification for the following resident/applicant, in the case of a resident/applicant receiving housing assistance payments under Section 8, of the United States Housing Act of 1937.

To Be Completed By Public Housing Authority Representative

The above named applicant/resident’s income does not exceed the applicable income limit under Internal Revenue Code Section 42(g). The

household’s gross income (before allowances) is $ .

Date Last Certified: Number of people in household:

Any income being counted under the Earned Income Disallowance?


Supporting Document from PHA

SAMPLE


OHIO HOUSINGFINANCE AGENCY Under $5,000 Asset Certification


For households whose combined net assets do not exceed $5,000. Complete only one form per household; include assets of children.

This form is not to be used at LIHTC projects that have funding from HDAP/HOME, HDAP/NHTF, HDAP/OHTF assisted units, or any project- based rental assistance.

Household Name:

Property Name:

I/We certify that the net assets (as defined in 24 CFR 813.102) of this household do not exceed $5,000.

The annual income from the net household assets is $ . This amount is included in the total gross income for this household.




Under $5,000 Asset Certification

SAMPLE

— OHFA Forms

1 Effective 1/2019

☐

The 2013 HOME Final Rule requires Participating Jurisdictions (PJ’s) to review and approve rents annually for all multifamily HOME assisted properties during their affordability period. To comply with 24 CFR 92.252, you must submit this completed form, a copy of the newly published HOME Rent Limits, and a copy of the current utility allowance chart within 30 days of the release of the HOME Rent Limits each year. HUD published HOME Rent Limits may be accessed at: https://www.hudexchange.info/manage-a-program/home-rent-limits/. You may submit this information by mailing it to: Ohio Housing Finance Agency, 57 East Main Street, Columbus, Ohio 43215 or by emailing it to [email protected]

Project Name: HOME Funding #:

Project Address:

Project Completion Date: County:

Directions: (A) Enter bedroom size and choose whether the unit is Low or High HOME (B) Enter total rent charged (C) Enter current utility allowance. The “Gross Rent” columns will auto-calculate if completed electronically. If you are not requesting a rent increase, please certify that by duplicating the “Current Rent Structure” in the “Proposed Rent Structure” column.

Current Rent Structure Proposed Rent Structure

BR Size (A)

Low HOME (50%)

High HOME (80%)

Rent (B)

UA(C)

Gross Rent (B+C)

BR Size (A)

Low HOME (50%)

High HOME (80%)

Rent (B)

UA(C)

Gross Rent (B+C)

Effective date of HOME Rent Limits

HOME Program - Annual Rent Approval Form

Year Year

____________________

Select OneAdams

$ 0.00 $ 0.00

$ 0.00 $ 0.00

$ 0.00 $ 0.00

$ 0.00 $ 0.00

$ 0.00 $ 0.00

$ 0.00 $ 0.00

$ 0.00 $ 0.00

$ 0.00 $ 0.00

Home Rent Approval Form - Page 1

SAMPLE


HOME Program - Annual Rent Approval Form

2 Effective 1/2019

By signing below, I certify the information submitted on this form is true and correct and I am aware of the following:

• Tenant rent portions do not exceed 30% of the monthly household income. If instances occur, explain below.• OHFA reserves the right to request additional information to support the need for rent increases.• Any and all rent increases require a thirty (30) day written notice to tenants.• Failure to receive OHFA approval and/or provide tenants with proper notice of rent increases may

require a reduction in rent and restitution paid to affected tenants. • This document is exclusively intended for HOME Investment Partnership Program use only.• Recipients who fail to submit the Rent Approval Form will be reported to OHFA’s Office

of Planning, Preservation and Development. Allocation of funding for new projects may be impacted.

Comments:

Signature of Home Funding Recipient: Date:

Printed Name: Title: _______________________________

Phone: Email:

OHFA Staff Use Only:

PROPOSED RENT STRUCTURE APPROVED

PROPOSED RENT STRUCTURE DENIED

Reviewed By: Date: _____________________

Comments: ____ _

SAMPLE

Home Rent Approval Form - Page 2

— OHFA Forms

Affirmative Fair HousingMarketing Plan (AFHMP)

Page 1 of 3 PC-E45 Revised 7/2017

Project Name: OHFA Project Number:

Address: Number of Units: Number of Buildings:

Plan Type: ☐☐ Initial Plan ☐☐ Updated Plan

Previous Plan Effective Date:

Reason(s) for update:

Owner Name & Address: Entity Responsible for Marketing (check all that apply)

Phone: Email:

☐☐ Owner ☐☐ Agent ☐☐ Other (specify)

Contact information for this AFHMP? Include Name and Address

Phone: Email:

Management Company Name & Address:

Phone: Email:

Approved Occupancy of the Project (check all that apply)

☐☐ Elderly ☐☐ Family ☐☐ Disabled ☐☐ PSH

1a. Demographic Groups Least Likely to Apply 1b. Housing Marketing Area:

Is Housing Marketing Area selection based on? ☐☐ Population/Density ☐☐ Multiple Sites/Census Tracts ☐☐ Other

List the percentage of each demographic group for the project (if occupied), waiting list (if applicable), and housing market area (e.g. census tract, city, county). Can be obtained from a local planning office, or other official source like the U.S. Census Bureau http://factfinder2.census.gov/main.html Map showing the Housing Market Area and the housing marketing area demographic source should also be attached.

Demographic Characteristics

White American Indian or

Alaskan Native

Native Hawaiian or Pacific Islander

Asian Black or African American

Hispanic or Latino

Persons with Disabilities

Families with Children

Other (specify)

% Project

% Waiting List

% Housing Market Area

Indicate which demographic group(s) in the housing market area is/are least likely to apply for the housing without special outreach efforts. (check all that apply)

☐☐ White ☐☐ American Indian/ Alaska Native ☐☐ Native Hawaiian/ Other Pacific Islander

☐☐ Asian ☐☐ Black or African American ☐☐ Hispanic/ Latino ☐☐ Persons with Disabilities ☐☐ Families with Children

☐☐ Other underserved group, religion etc. (specify)

State Protected Classes: ☐☐ Ancestry ☐☐ Military Status Local Protected Classes/Underserved:

2a. Brochures, Signs and HUD’s Fair Housing Poster

The Fair Housing Poster must be prominently displayed in all offices in which sale or rental activity takes place. Location(s):

Affirmative Fair Housing Marketing Plan - Page 1

SAMPLE




AFHMP is available for public inspection at the sales or rental office. Location(s):

Project Site Signs, if any, must display the HUD approved Equal Housing Opportunity (EHO) logo, slogan, or statement (24 CFR 200.620(f)). Submit photo of project signs. Location(s):

Will printed materials and advertising include: Equal Housing Opportunity logo or slogan? ☐☐ Yes ☐☐ No Use of alternative format (e.g. Braille, large print, etc.)? ☐☐ Yes ☐☐ No If yes, list in 2c. Use of multiple languages? ☐☐ Yes ☐☐ No If yes, list in 2 b or c as applicable.

2b. Community Contacts for Marketing and Outreach For each targeted population least likely to apply, identify at least one community contact organization you will use to facilitate outreach to the particular group. In addition to the organization name, state the names of contact persons, their addresses, their telephone numbers, and title of the contact person. May include a social service agency, religious body, advocacy group, community center, etc. Attach correspondences to organizations.

Target Population(s) Community Contact(s) Information: May be applicable to multiple populations

Explanation on why/how organization works with population(s) identified

2c. Methods of Advertising

For each targeted population, include the Name of Media Organization, Size & Duration of Advertising, and the Type of Media. Examples of media: newspaper, radio, billboards, website, etc. If pertinent include any language(s) in which the material will be provided or identify any alternative format(s) to be used (e.g. Braille, large print, etc.). Attach copies of the advertising or marketing materials.

Target Population(s) Name of Media Organization Size/Duration Type of Media

2d. Evaluation of Marketing Activities Explain the evaluation process used to determine whether your marketing activities have been successful in attracting individuals least likely to apply, how frequent is evaluation, and how you will make decisions about future marketing.

SAMPLE

Affirmative Fair Housing Marketing Plan - Pages 2 & 3

— OHFA Forms



3a. Marketing Staff

What staff positions are/will be responsible for affirmative marketing?

3b. Staff Training and Assessment: AFHMP

(1) Has staff been trained on the AFHMP? ☐☐ Yes ☐☐ No If yes, list in 5d.

(2) Has staff been instructed on fair housing policies as required by 24 CFR 200.620(c)? ☐☐ Yes ☐☐ No If yes, list in 3d.

(3) Are staff’s skills assessed on the use of the AFHMP and the Fair Housing Act? ☐☐ Yes ☐☐ No If yes, list in 3d.

3c. Tenant Selection Training/Staff (1) What staff positions are/will be responsible for tenant selection?

(2) Has staff been trained on tenant selection in accordance with the project’s occupancy policy? ☐☐ Yes ☐☐ No 3d. Staff Instruction/Training: Samples and Dates

Please provide documentation of fair housing training and list below the names of attendees and dates of trainings.

4. Additional ConsiderationsIs there anything else you would like to tell us about your AFHMP to help ensure that your program is marketed to those least likely to apply for housing in your project? Please attach additional sheets, as needed.

5. Signature and AcknowledgementBy signing this form, the agent/owner agrees to review its AFHM Plan at least once every 5 years throughout the life of the OHFA compliance period and to update it as needed in order to ensure continued compliance with HUD's Affirmative Fair Housing Marketing Regulations (see 24 CFR Part 200, Subpart M) and OHFA’s policies. I hereby certify that all the information stated herein, as well as any information provided in the attached, is true and accurate.

Owner Signature Date of Submission

Name (type or print) Title Name of Company

For OHFA Use Only

Signature & Date (mm/dd/yyyy)

Name (type or print) Title

For OHFA Use Only

☐☐ Approval

☐☐ Disapproval

SAMPLE


Management Questionnaire - Pages 1 & 2

SAMPLE

OHIO HOUSINGFINANCE AGENCY Management Questionnaire

PC-I225F | Revised on 04/20/2020 Page 1 of 3

Date Owner: Management Co.:Project: Address: Address:Address: City/State: City/State:City/State Owner Contact: Region Contact:Site Contact: Phone: Phone:Phone: Email: Email:Email:

Syndicator:How Long has the Site Manager managed this property: Synd. Contact:Have you had any local code violations within the last 3 years: Synd. Email:

Affirmative Fair Housing Marketing Plan (AFHMP)1. Date the AFHM Plan was last approved: (Updated every 5 years)

• If there are no changes to the plan, a PC-E46 AFHMP Review Verification Form must be submitted with current Fair Housing Training certificatesfor all applicable staff.

• If there are changes to management, ownership, demographics or marketing/outreach a PC-E45 AFHMP form must be submitted with allmandatory documentation.

2. Is there a tenant selection plan? ☐ Yes ☐ No Effective Date:

Special Needs Housing

☐ ELI (Extremely Low Income) ☐ MSI (Mobility and Sensory Impairment) ☐ Transitional/Permanent Supportive Housing

☐ DD (Developmentally Disabled) ☐ EP (Elderly Persons) ☐ MI (Severe Persistent Mental Illness)

☐ SP (Single Parent) ☐ Other:

Utility AllowanceUtility Allowance Source: ☐ Owner Paid ☐ PHA ☐ RD ☐ HUD Rent Schedule

OHFA Approved: ☐ Engineer’s Energy Consumption Model ☐ Utility Company Estimate ☐ HUD Utility Schedule Model

Effective Date:

Non-OHFA Funding Source(s)Please mark all that apply: ☐ Section 8 ☐ PBA ☐ TBA ☐ RD 538 ☐ RD 515 ☐ Bonds ☐ HOME ☐ PBV ☐ 811

Projects with OHFA Gap Financing—HOME/Trust1. Are the assisted units: ☐ Floating? ☐ Fixed?

• If ‘floating,’ does the owner ensure that the rental units are comparable? ☐ Yes ☐ No• When the tenant vacates, is the Next Available Unit made available to a HOME eligible tenant? ☐ Yes ☐ No ☐ N/A

2. When Tenant’s income rises above 80% AMI, is the Next Available comparable unit rented to a HOME/Trust-eligible tenant? ☐ Yes ☐ No3. In properties of five or more assisted units are at least 20% of the units rented at or below the LOW HOME Rent level? ☐ Yes ☐ No4. Were the assisted units initially leased to households per the Funding Agreement? ☐ Yes ☐ No5. Are tenant leases properly executed and free of all prohibited provisions? ☐ Yes ☐ No6. Are the tenant leases for a minimum of one year (unless otherwise agreed upon by tenant and owners)? ☐ Yes ☐ No7. Does the owner provide adequate information to program applicants about program rules and expectations? ☐ Yes ☐ No8. Is the Contract Rent for HOME units with project-based subsidy in compliance with the HOME rule? ☐ Yes ☐ No ☐ N/A

— OHFA Forms

SAMPLE



HOME/Trust Units

Current HDAP Recipient: Address:

Total # of Assisted Units: 1BD: 2BD: 3BD: 4BD: 5BD:

# High Home Units:

# by Bedroom Size: OBD:

# Low HOME units:

Unit # Date Unit Became HDAP Unit # Date Unit Became HDAP Unit # Date Unit Became HDAP

*Attach an additional page if necessary

Building/Units

Number of Buildings: Total Number of Units: Model Unit: ☐ Yes ☐ No

Number of Low-Income Units: Number of Market Rate Units: Employee Unit: ☐ Yes ☐ No

List of Market Rate Units:

# 811 Units: Unit Numbers:

List of Bed Bug Units, including those treated within last 30 days:

# of Accessible Units: List Units:

Total # of Vacancies:

# of Vacant units Rent Ready (or could be within 72 hours): Number of Vacant units Not Rent Ready (list details below):

List Vacant Units Not Rent Ready Identified Above. (Use additional page if necessary)

Buildings (BIN) Unit # Date Vacant Reason not Rent Ready


SAMPLE

Management Questionnaire - Page 3



Resident Social/Supportive Services1. Did the project indicate at application that supportive services would be provided? ☐ Yes ☐ No

2. Does the property offer supportive services? ☐ Yes ☐ No

• If ‘yes,’ specific population(s) served:

3. Does the property have an on-site service coordinator/counselor? ☐ Yes ☐ No

4. Types of services offered: ☐ Mental Health Counseling ☐ Drug/Alcohol Addiction Counseling ☐ Housekeeping☐ Financial/Credit Counseling ☐ Health Screening or Health Programs ☐ Meal Programs ☐ Daycare☐ Vocational Training ☐ Youth Programs ☐ Other (please list under comments) ☐ Social Events

Comments/Other Information of which OHFA should be aware:

Completed By (Printed Name)

Title

Signature Date

Auditor Initials: Follow-up Required? ☐ Yes ☐ No

For OHFA Use OnlyShould read Date reviewed for accuracy:

Comments/Clarifications


— OHFA Forms

RECOMMENDED FORMSThe following forms are not required, but recommended for best practices. They can all be found online on the Compliance Forms page at www.ohiohome.org/compliance/forms.aspx.

Income Verifications• Alimony and/or Informal Child Support Affidavit (PC-

E34)• Child Support Verification (PC-E10)• Employment Verification (PC-E02)• Financial Aid Verification (PC-E12)• Informal Support Verification (PC-E14)• Military Pay Verification (PC-E09)• Pension Verification (PC-E08)• Public Assistance Verification )PC-E13)• Social Security/Supplemental Security Income

Verification (PC-E07)• Unemployment Verification (PC-E11)• Certification of Zero Income (PC-E15)

Asset Verifications• Annuity Verification (PC-E18)• Bank Account Verification (PC-E16)• Life Insurance Verification (PC-E17)• Real Estate Worksheet (PC-E19)• Retirement Savings Plan Verification (PC-E35)• Stock Verification (PC-E36)• Trust Account Verification (PC-E29)

Certification Tools• Clarification Record (PC-E20)

Unit Number:

Applicant / Resident Name:

Project Name:

Certification / Recertification Date:

Means of Clarification: Phone Conversation

Person-to-Person Conversation

Other: (please state below)

Name of Person Supplying Information:

Title:

Date of Clarification

Company / Organization:

Reason for Clarification:

Explanation for Clarification Given:

Name & Title of Person Receiving above information Date

PC-E20Rev. 12-09

Clarification Record

SAMPLE

— Compliance Policies and Regulations Training KNOWLEDGE CHECK MODULE

1. To be a qualified tax credit unit, check all that apply:

� Unit must be suitable for occupancy.

� Households must be “certified” to document that their income falls at or below the applicable tax credit limit.

� Households must not be occupied by all full- time students unless at least one member or all household members meets one of the student status exceptions.

� Households must be rent restricted.

� Non-transient

2. What document is developed annually by each state and provides developers with information on the LIHTC program including the minimum development requirements, competitive scoring and underwriting criteria and compliance requirements?

� Qualified Alliance Program

� Qualified Allotment Plan

� Qualified Allocation Plan

3. What two documents are not required OHFA Forms:

� Management Questionnaire and Student Income and Asset Statement (SIAS)

� OHFA Clarification Record and Employment Verification

� AFHMP and Student Status Certification

� HOME Rent Approval Form and LIHTC Addendum

4. The minimum set aside is the minimum number of units in a project that must be set aside as low income and is irrevocable.

� True

� False

5. The Credit Period is 15 years beginning with the first year of the tax credit period.

� True

� False

— Qualifying Households

SECTION THREE:QUALIFYING

HOUSEHOLDS


INCOME QUALIFYING HOUSEHOLDSSection 42 regulations require that “the income of individuals and area median gross income shall be determined… in a manner consistent with determinations of lower income families under Section 8…,” meaning that the HUD Section 8 regulations found in the HUD 4350.3 Rev-1 Change 4 Manual generally stipulate how income is determined.

There are four steps in order to income qualify a household:• The applicant fills out a self-disclosure of income, assets and student status (the OHFA Sworn Income and Asset

Statement or SIAS);• Supporting documentation is gathered;• Income is calculated based on the information gathered; and• A certification is signed by the resident(s) and property manager.

Step 1: Self Disclosure

All adults aged 18 and over are required to fill out an application and OHFA’s Sworn Income and Asset Statement (SIAS) (form PC-E01). OHFA’s Student Certification form is also required if LIHTC funding is on the project. All questions must be answered completely leaving no blanks and without correction fluid. The forms must be completed, signed and dated by both the household member and the site staff in ink (signatures in pencil are void).

What questions should be asked on the application?

Minimum requirements:• The names of the individuals living in the unit;• The ages and the relationships of all household members, and• Changes to the household anticipated in the next 12 months.

There must be a space for all household members over the age of 18 to sign the application. This information is necessary in order to:

• Determine whose income has to be counted and what rules may apply, and• Ensure that the correct income limit for the household size is used.

Applications may also be used to collect information on the following topics:• Household qualifications for a special needs category such as:

→ Elderly → Extremely low-income → Persons with certain disabilities → Persons that need permanent supportive housing

• Income sources• Assets• References• Previous rental/housing history

Compliance Tip: Make sure your application contains questions about digital age income sources.


Step 2. Gathering Documentation

The next step to qualifying a household is gathering all of the necessary documents to determine student status, income and assets for all of the household members.

Student Verifications

Student Status for the LIHTC Program

The LIHTC program prohibits renting to households that are made up entirely of full time students, unless at least one member or all household members meet one or more of the five exceptions.

• A full-time student is defined as any individual who is a full-time student at an educational institution (elementary, high school, college, trade school, university) at least five months in a calendar year (Section 151(c)(4) of the IRC Code). All or part of a month is considered a full month.

Student Status Exceptions:

1. All adults are married and ENTITLED to file a joint tax return. Same-sex couples qualify if legally married under any state’s law (IRS Revenue Ruling 2013-17)

2. A single parent household with at least one dependent child. The parent is not dependent of another individual and the child is only a dependent of the resident or the other, non-resident parent.

3. The household contains a member enrolled in a government sponsored job training program such as Workforce Investment Act

4. The household contains a member who formerly received foster care assistance.

5. The household contains a member who is receiving assistance under Title IV of the Social Security Act, e.g. Temporary Assistance for Needy Families (TANF).

Households must provide proof that one of the exceptions are met if they are claiming to have full time student status.

Student Eligibility

The LITHC student rule has to be maintained at all times (8823 Guide 17-2 and Exhibit 17-1) Student eligibility is evaluated at:

• Move-in• Recertification (even for 100% LIHTC developments/

properties)• When a household reports a change in household

composition• When a household reports a change in student

status.

Owners must use OHFA’s Student Status Certification to verify household student status.

Households or individuals that meet the LIHTC rule may be ineligible under the HUD student rule.


Student Status for HUD/RD/HOME

HUD Section 8 student rules were established with the U.S. Housing Act of 1937. The restrictions on assisting students enrolled in an institution of higher education were outlined (24 CFR 5.612). RD adopted HUD’s Section 8 student eligibility and income rules in early 2007. A clarifying letter in 2011 adjusted the student income rules, but did not change the eligibility policy

(HB-2-3560 6.5 A). On July 23, 2013, the U.S. Department of Housing and Urban Development (HUD) published a revision to the regulations governing the HOME Investment Partnerships Program (e.g. 2013 HOME Final Rule). With the new HOME regulations, HOME adopted the Section 8 student rule. In 2017 there was also additional guidance about the definition of an independent student to align with the Department of Education’s definition. (24 CFR 92.2)

A student who is enrolled as either a part time or full time student at an institute of higher education for the purpose of obtaining a degree, certificate, or other program leading to a recognized educational credential will be eligible for assistance if they are:

• Is at least 24 years old or• A dependent of the household or• Is married or• Is a veteran of the Armed Forces of the United States or is currently serving on active duty in the Armed Forces other

than training purposes or• Has legal dependents other than a spouse or• Is a person with disabilities who was receiving Section 8 assistance as of November 20, 2005 or• An orphan or ward of the court

OR

Must be independent from parents and needs to meet ALL of these requirements:• Of legal contract age under state law and• Have established a household separate from parents/ guardian for at least 1 year and• Must not be claimed as a dependent by parents or legal guardian pursuant to IRS regulations and• The parents must provide signed certification stating if they are providing financial assistance to the student

OR

Must be independent from parents, be of legal contract age under state law and needs to meet at least one of these requirements as an independent student by:

• Having legal dependents other than a spouse in the unit or• Is a graduate or professional student or• Is an emancipated minor or was an emancipated minor before they became an adult or• Is or was an orphan or a ward of the state or in foster care at any point since 13 years old age or• Been established this school year to be an unaccompanied homeless child our youth and self- supporting as defined

by: The McKinney Vento Act, Runaway and Homeless Youth Act, or A financial aid administrator.

OR

The adult full or part time student’s parents qualify under the HOME high Income limit for their area.


Comparing Student Rules

Owners must be mindful that the LIHTC student rules are different than the HUD/RD/HOME student rules. One example is the LIHTC rules focuses on households made up of full-time students of any age, while HUD’s student rule applies to individuals who are either part-time or full-time students through age 23. When comparing the HUD and tax credit student rules it is evident that each set of rules are too dissimilar so it is impossible to just pick ‘the most restrictive’ rules. If a tenant has tax credits and HOME, RD or Section 8, they need to qualify under both sets of student rules.

HUD, HOME and RD Student Rules

Need to meet both sets of rules to

qualify.

If full time or part time student: Is student’s independence verified

or 1 of 7 exceptions met?

Tax Credit Student Rules

If full time student: Do you meet at least 1

of the 5 exceptions?


Household Income

Whose income is counted?

Adults age 18 and over, including foster adults and temporarily absent family members must be counted. For dependents under the age of 18, including foster children, count all unearned income such as social security and income from assets.

Only $480 of earned income from adult full-time students are counted.

Do not count income for the following:

• Live-in attendant – These individuals are solely in the unit to provide assistance to a family member. They do not provide financially to the household. They are not on the TIC and not on the lease. They have no right of survivorship for the unit.

What income is counted?

• Income Inclusions and Exclusions are found in the HUD 4350.3 REV-1, Change 4, Chapter 5.

• If a source of income is not specifically listed as an exclusion, you must count it as income.

Some typical sources of income are:• Wages (including overtime, raises and tips)• Self-employment• Social Security, SSI, pensions• Unemployment, workman’s compensation,

disability compensation, severance pay• Child Support/alimony• Public assistance• Regular recurring gifts• Rental income

What income is NOT counted?

Some typical sources of income that are NOT counted are:

• Food, food stamps, Meals on Wheels• Student Financial Aid (different rules may apply)• Experience Works, Retired and Senior Volunteer

Program (RSVP)• Federal Government pension funds – Uniformed

Services pensions and other state, local government, Social Security or private pension funds that are paid directly to an applicant’s or tenant’s former spouse pursuant to the terms of a court decree of divorce, annulment, or legal separation.

à Temporary, nonrecurring or sporadic (including gifts)

Handling TipsFor persons in industries where tips are common, they are often paid considerably less than minimum wage.

• It must be clarified why an employer is reporting paying less than federal law requires. In most cases, the employment verification (EV) does not contain accurate information. It is important to have the employer disclose year- to-date earnings (both hourly wages and tips) to help determine actual income.

• A documented telephone conversation with the employer is an acceptable method of clarification, though a series of pay stubs is preferred.

• Obtaining several consecutive pay stubs is helpful in determining if the employee is really working as many hours as an EV might report. Pay stubs will also show tips earned; be sure to compare the tips on the stubs with what is reported on the EV. If the individual has had the same job for more than one year, previous years’ tax returns can also be useful.

• OHFA recommends that the applicant complete a self-affidavit under penalty of perjury stating all tip income, including tips not reported to the employer and use OHFA’s Clarification Record.


Household Assets

An asset is an item of value that can be converted into cash and is accessible to the household.

Common Asset Terms

1. Market Value: The value of the asset on the open market or the money that another person would pay to acquire the asset.

2. Cash Value: The Market Value of the asset less the cost to turn the asset into cash.3. Actual Asset Income: The actual income from the asset, generally calculated by multiplying the Market Value by

the interest rate.4. Imputed Asset Income: The income from assets based on the Cash Value of all household assets, multiplied by the

current HUD passbook rate

What Assets are counted?• Savings and checking accounts• Certificates of deposit, money market accounts• Stocks, bonds, and treasury bills• IRA’s, 401Ks, Keogh accounts, annuity funds• Equity in rental property or other capital investments

Note: include the current fair market value less (a) any unpaid balance on any loans secured by the property and (b) reasonable costs that would be incurred if selling the asset (e.g. broker fees, penalties, etc.)

• A deed in trust or mortgage held in a household member’s name• Cash value of life insurance policies available to individual before death (whole and universal policies)• Direct express cards• Retirement and Pension Funds• Revocable trusts• Personal property held as an investment• Lump-sum or one-time receipts such as inheritances, one-time lottery winnings, capital gains

What Assets are not counted?• Cars kept for personal use• Personal property: wedding rings or other jewelry that is not held as an investment, , antiques used as household

furniture, cars, etc.• Assets that are not accessible to the household member • Assets not effectively owned by the household member (e.g., income

accrues to someone else; taxes are paid by someone else)• Assets that are part of an active business

Note: “business’ does not include rental of properties that are held as investments unless such properties are the applicant ’s or resident ’s main occupation

• Term life insurance policies (unless the policy has a cash value)

All income that has been disclosed must be supported with documentation.

For a complete list see HUD 4350.3 REV-1 Change 3, Chapter 5.

Please refer to HUD’s 4350.3 manual, Chapter 5 and Appendix 3 for advice on acceptable forms of verification.


Self-Employment

Self-employment income is an earned income source. Self-employed tenants/applicants must provide the following:• IRS Schedule C (1040) if net earnings are $400 or more• IRS Schedule F for rental properties• IRS Form 1099 or Form 1099k (if earning over $20,000)• Audited or unaudited financial statement(s) of the business

Digital Age Income

Alternative means of employment, such as internet “work” is an emerging field. Many in the industry believe these sources of income and assets will increase exponentially in years to come. Digital Age income should be treated as self-employment.

Many owners and management agents are finding residents and applicants with self-employment income for companies such as Uber ®, Uber Eats ® and Lyft ®, just to name a few. Residents are also making money from creating YouTube ® channels. It is hard to keep up with the explosion of income-making computer/phone apps. Some other digital age income sources include:

• Fiverr• Foap• In-Game Economies/Sale of Virtual Goods• E-commerce Sites (e.g., Shopify, Ebay, Etsy, Poshmark)• App based services (e.g. Grubbhub, Doordash, Instacart)• Social Media Influencers (e.g. YouTube, Instagram)

How to Verify these “Gigs”

Treat as self-employment• The 8823 Guide (chapter 4) suggests verifying self-employment income through Form 1040 (tax return), signed

statements from the business owner, completed IRS 1040 Schedules such as C and F• Printouts from the “gig” work website/app as a basis for income.• Any receipts as a basis for expenses• Ridesharing apps provide mileage as part of the printout. Once the owner/management company knows the

timeframe that the IRS 1040 Schedule C covers, annualize appropriately.

Caution: Be mindful of tenants renting their unit as an Airbnb for the weekends. This is becoming more common, especially for projects located close to concert venues or other popular public places. Leases should prohibit use of units as Airbnb which the IRS considers a commercial space.

Compliance Tip: If a tenant has been in business less than one year, the tenant should provide a Profit and Loss Statement or business proforma and self-affidavit.

Compliance Tip: Uber and Lyft can access the IRS 1099 through their online driver accounts and a tax summary that will provide information on expenses (i.e. driver fees) and mileage.


Office of Multifamily Housing Page 1 of 2

Self-Employment with Digital Income Sources

Reference Guide

What is a Digital Income source? Any source of income that involves the use of programs or applications to conduct or manage the sale of goods, services, or other resources over the internet.

Importance for Multifamily Housing Many industry officials believe these sources of self-employment income (or even assets) will become increasingly common. These streams of income should be treated as self-employment (8823 Guide, Chapter 4).

Make sure the tenant application includes questions on digital income and app-based income sources.

Online Sales & E-commerce

App-based “Gig” Work

This category varies greatly. Many companies provide a platform for self-employment.

The most common “gigs” include ride hailing, deliveries, services, or labor. The number and types of apps related to “gigs” is ever growing.

Income generated in this category is predominately based on sales apps or other platforms. Sales may include items (real or in-game), art, photography, and more.

This category also includes platforms that allow for generating income from completing surveys.

This fact sheet is a great tool of OHFA’s guidance for digital age income.


Office of Multifamily Housing Page 2 of 2

Social Media Influencer

Best Practices for Verifying Digital Income • Best Compliance Practice: Provide last year’s tax return (Form

1040 or 1040 Schedules C, E, F)

o Applicant should always complete a self-employment or income from business declaration

• Better Compliance Practice: Obtain payment history (available on internet websites) including receipts as a basis for expenses

• Good Compliance Practice: If best and better practices are not available, obtain an account financial statement of net income from self-employment

Digital Age Assets

Best Practices for Digital Age Assets • What type of transactions will occur or the frequency of transactions will determine how the

asset should be treated for verification.

• Apps or platforms focused on investing generally should be treated like any other investment with stocks or bonds.

o Some apps also provide checking and savings account features as well.

• Internet-based fundraising or crowdfunding may need to be treated like a bank account. This is dependent on the volume and regularity of activity that occurs.

A social media influencer is a social media user who has established credibility in a specific industry. An influencer receives income based on their reach to an audience.

There are several platforms that allow for investing in small increments.

Additionally, crowdfunding on apps can become an asset depending on how monies are used.

Cryptocurrency is another digital age asset source.

Compliance Tip

If applicant/ tenant is in

business for less than one year,

obtain a Profit and Loss statement

and self-affidavit.


What is considered an Asset?• Cryptocurrency (e.g. bitcoin)• Robinhood• Acorn• Internet-based funding (e.g., Go Fund Me) should

be treated similar to a bank account. Be mindful of moving goals. Tenants may set a goal of $1,000 but then change it to $3,000.

Methods of Income VerificationThree types of verification. All earned and unearned income and assets must be verified by using a HUD acceptable method:

1. Third Party Verifications (3 types)a. Written- sent directly by a 3rd party sourceb. Oral- by telephonec. Electronic- by email

2. Second party or Review of Documentsa. 2nd Party verifications are used if 3rd party

verifications could not be obtained or if 3rd party verification were not required (e.g. birth certificates or divorce decrees)

3. Household certificationa. Self-declaration should only be acceptable

if the other two methods were unattainable. Tenants may submit a notarized statement or signed affidavit regarding the needed information.

Third Party VerificationSection 8 regulations state that third party verification is the most accepted form of verification of income. In order to obtain third party verifications, the household member must sign an authorization for release. The verification forms must be sent directly to the source and at no time should be sent through the household member.

LIHTC and HUD verifications are valid for 120 days from the date of the verification unless the project manager date stamps the verification once it is received. RD verifications are good for 90 days but can be extended through verbal verification for an additional 90 days. HOME unit verifications are good for up to six months.

Keep in mind that if all verifications are not received within the allotted time frame, the outdated verifications must be re-obtained.

Third Party Verification from a PHAIRS 1.42-5 (b) (1) (vii) allows for an owner to accept income verification from a PHA if the household has a Section 8 Voucher as long as they do not exceed the applicable income limit for the household size.

All income that has been disclosed must be supported with documentation. If the household’s total amount of assets is less than $5,000, the household may self-certify the annual amount of income from assets.

Note: your project may have other funding sources that do not permit the use of this form, e.g., the HOME program, Project Based Section 8 or Rural Development. In addition, the owner or syndicator may require full third party verifications to determine the value and income stemming from all assets.

Effective data collection:• Follow up every few days on outstanding

verifications until all verifications are received.• Since email verifications are very common confirm

the verification has the 3rd party name, position and contact information.

• Internet verifications need to have the URL on the printout.

Please refer to HUD’s 4350.3 manual, Chapter 5 and Appendix 3 for advice on acceptable forms of verification.

Compliance Tips:OHFA does allow pay stubs as the first form of verification without attempting to obtain 3rd party verification from employers. 4-6 paystubs are required.If you choose to attempt to obtain 3rd party verification but are unsuccessful:

x Be sure to document the situation and the steps taken to obtain the third party verification.

→ Include a copy of the original verification that was sent showing the date is was sent.

→ A clarification record explaining your steps, also included.

When in doubt, clarify! x Use the OHFA Clarification Record when there

is missing or unclear information regarding a verification.

→ Do NOT USE Post-It ® notes or White- Out ® type products on a verification or certification.

→ Do NOT clarify information on the actual verification document (this includes editing with a colored pen.)


Step 3: Calculating Income

Once you have all of your verifications, it ’s time to calculate the household’s annual income.

Annual income is the sum of:• Regular income (e.g. wages, Social Security, child support)• Income from assets (e.g. interest income, dividends)• This sum is the gross amount of anticipated income. There are

no allowances taken, and there is no rounding of amounts.

Always count income before any deductions for taxes or insurance, Medicare, or other similar charges. When calculating income, you are projecting forward (“anticipating”) for the certification year based on current circumstances and including any imminent changes (e.g., raises, changes in work hours).

Temporary income should be annualized based on current circumstances even if it might not be received for all 12 months covered by the certification. Unemployment income is an example of a source of income that might not be received for a full 12 months.

• Example:

Wages (no changes anticipated) • $10.00 per hour; 40 hours per week

→ $10.00 x 40 x 52 = $20,800

Wages (raise anticipated in 26 weeks)• Current rate

→ $10.00 per hour; 40 hours per week for 26 weeks + $10 x 40 x 26 = $10,400

• New rate after raise → $10.50 per hour; 40 hours per week for 26 weeks

+ $10.50 x 40 x 26 = 10,920 = Total Annual Wages = $10,400 + $10,920 = $21,320

Social Security• Current monthly award is $650.20

→ 650.20 x 12 = $7,802.40 • Do not round down even if the verification states otherwise!


Child Support/Alimony

The Sworn Income and Asset Statement (SIAS) asks the following questions regarding child support:• Do you have a court order or an agreement for you to receive child support/alimony?• Are you currently receiving payments?• If not, have reasonable efforts to collect been made?

If there is a court order for child support, you must obtain verification of amounts being received. Be sure to check directly with the Child Support Enforcement Agency (CSEA) in the county and state where the court order was issued. If there is not a court order for child support and the household member is not receiving support, there is no further verification needed other than what is provided on the SIAS.

Student Aid as Income

The new Student Rule for Section 8 housing became effective January 30, 2006. While this affects eligibility and income for students in Section 8 projects, there is a portion of this rule that also affects the income calculation for Housing Choice Voucher holders at LIHTC projects.

If a household member is receiving Student Financial Aid in excess of the amount used to pay tuition, it must be counted as income for the household. This applies regardless of full or part time status.

The rule does not apply to the following students:• Over the age of 23• Who have dependent children• Who live with their parents who are applying for or receiving Section 8 assistance

Income from Assets

What IS considered income?• Athletic scholarships• Academic scholarships• Pell Grants• Federal Supplemental Educational Opportunity grants (FSEOG)• State assistance under the Leveraging Educational Assistance Partnership Program (LEAPP)• Robert G. Byrd Honors Scholarship program• Federal Work Study programs• Assistance received from parents or other family members• Assistance from the educational institution

What is NOT considered income?• Student loans (e.g. Perkins, Stafford and Plus loans)


Cash Value of Assets

For purposes of determining the value of the asset, the cash value is the current market value, less any costs to convert the asset into cash.

A few examples of assets that may have costs to convert to cash:

• Certificates of deposit• Real estate• Stocks

Let’s look at examples with both a checking and a savings account to see how the annual income and cash value are calculated.

• The cash value of a savings account is based on the current balance. The income is calculated by multiplying the cash value by the interest rate. Example:

→ Current balance is $1,500 → Interest rate is 1% → Annual income: 1,500 x .01 = $15

• The cash value of a checking account is based on the six-month average balance. The income is calculated by multiplying the cash value by the interest rate.

→ Six-month average balance is $700 → Interest rate is .25% → Annual income: 700 x .0025 = $1.75

Now let ’s look at a Certificate of Deposit to see how the annual income and cash value are calculated.

• Example of a Certificate of Deposit → Current market value: $10,000 → Interest rate: 5% → Annual income: $10,000 x 5% = $500 → Withdrawal penalty: six month’s interest → Penalty: $500/12 x 6 = $250 → Cash value: 10,000 - $250 = $9,750

Assets disposed of for less than fair market value must be counted for two years from the date of disposal.

Zero Income

If a member of the household disposed of an asset and the difference between what WAS received and what COULD HAVE been received is greater than $1,000, the amount that was ‘disposed of ’ must be counted as an imputed asset for two years from the date of the disposal.

• For example → On December 15, 2016 a household member

sells a house worth $100,000 to another family member for $70,000 instead of selling it to a non-related party for full price. Also in this example, the $70,000 they received for selling the house should be represented in some other way, e.g. savings, checking, certificate of deposit, etc.

→ $30,000 (the difference between the fair market value and the sale price) will be counted as an imputed asset until December 15, 2018.

Please note that this does not apply to assets that are disposed of due to

• Divorce• Bankruptcy• Foreclosure

Imputing income

If the household assets are valued at more than $5,000, you must compare the actual income earned to the “imputed income” (using HUD’s passbook rate), and use the higher of these two amounts.

• For example: → Total assets: $7,500 → HUD passbook rate: .06% Eff. 02/01/15 → Imputed asset income: $7,500 x .0006 = $4.50

After making this calculation, compare it to the actual income earned and use the higher amount.

• If a household member is currently unemployed and claims no income from sources such as Social Security, pensions, self-employment, alimony, child support, income from assets, etc., the tenant should complete OHFA’s Certification of Zero Income form and/or Tenant Affidavit. Reoccurring gifts are considered income and should be verified.


Step 4: Tenant Income Certification

The Tenant Income Certification, more commonly referred to as a TIC, is the documented summary of the information that has been gathered for the household

The TIC outlines:• Information on the unit such as number of

bedrooms and square footage;• The date of move-in of the current

certification;• The type of certification;• The members in the household and how

they are related to the head of household;• Each household member’s student status;• The household’s income. This is separated

by household member and by source;• The rent that will be charged to the

resident;• The utility allowance (if applicable); and• Demographic information.

Key Points:• Tenant paid rent is the amount that the

tenant pays out-of-pocket each month.• The gross rent (the amount the tenant pays

plus the utility allowance) cannot go over the maximum amount of rent allowed for that unit/set-aside.

• The TIC is signed by all household members that are age 18 or older, not just the head, co-head or spouse!

• The TIC is to be signed by a management agent at the same time as the household members sign the TIC.


Recertifications

As part of the Housing Assistance Tax Act of 2008, Congress amended Internal Revenue Code Section 142(d)(3)(A) regarding annual income certifications. Effective July 30, 2008, projects financed with LIHTC or multifamily bonds (issued by OHFA) may discontinue recertifying the incomes of existing residents, provided all of the units in the project are restricted for low-income occupancy (i.e. there are no market units in the project).

The amended Internal Revenue Code Section 142(d)(3)(A) ) does not modify the owner’s obligation to certify a household’s income at move-in. Owners and managers should review their policies and procedures to ensure that initial tenant income certifications are accurate and properly documented.

OHFA reserves the right to require recertifications when a pattern of non-compliance is identified with initial tenant income certifications or a project is out of compliance as a result of leasing a unit to a household that is not income- qualified.

OHFA housing tax credit and multifamily bond projects financed with HOME funds or Ohio Housing Trust Funds must continue to recertify the income of residents in assisted units per OHFA and HUD guidelines. Below is a chart with the HOME recertification timeline depending on a project ’s placed in service date.

In addition, owners must continue to comply with the student rule. OHFA requires a student status certification be completed annually within 120 days of the anniversary date of the initial certification. OHFA created form PC-E42 Student Status Certification which is a self-certification of student status. While this particular form is not mandatory, any form utilized must have the same language.

For those projects that still have to recertify residents, the following steps should be followed:

Recertification process

In order to recertify the household, four steps must be completed:

1. The applicant fills out a self-disclosure of income, assets (Sworn Income and Asset Statement) and student status;

2. Supporting documentation is gathered;

3. Income is calculated based on the information gathered;

4. A certification is signed.

Verifications are valid for 120 days (four months) from the date they are received by the management agent.• In order to capitalize on this time, the process should be started four months before they are due. For example, if a

recertification is due in April, paperwork should be started in December. → OHFA will allow the recertification TIC to be signed up to 120 days before the effective date. However, if there

are changes to the household’s income or composition, the changes will need to be verified and a new TIC will have to be created and signed by all parties.

The change in the recertification requirement is not applicable to certifications that are required by federal housing programs such as Section 8 or other HUD multifamily programs, or Rural Development 515 projects. These programs still require annual recertifications.


HOME Recertifications

For properties allocated HOME funds prior to 2014, the certification schedule is tied to the date the unit was qualified as a HOME unit. Following is an example of a recertification schedule for a project allocated HOME funds in 2012.

Prior to 2014

Year of Cycle Type of Recertification Calendar Year

1 3rd Party 2012(tenant move-in)

2 Self 20133 Self 20144 Self 20155 Self 20186 3rd Party 20177 Self 20188 Self 2019

For projects allocated HOME funds in 2014 and after, the recertification schedule is tied to the property’s compliance start date. The following is an example of a property that was allocated HOME funds in 2014 with a resident that became a HOME unit in 2017. Notice how they ‘fall’ into the property’s six-year cycle:

2014 and After

Year of Cycle Type of Recertification Calendar Year New HOME Unit

1 3rd Party 2014(IDIS start date)

2 Self 2015 3 Self 2016 4 Self 2017 3rd Party5 Self 2018 Self6 3rd Party 2019 3rd party7 Self 2020 self8 Self 2021 Self9 Self 2022 Self10 Self 2023 Self11 Self 2024 Self12 3rd Party 2025 3rd party


Multiple Subsidy Recertification Schedule

Properties funded with multiple subsides will have to adhere to all of the recertification requirements for each funding. Below are some of the main funding seen for OHFA funded projects. OHFA monitors for the LIHTC, HOME, OHTF and NHTF funding programs.

LIHTC

100%: only annual student certification Less than 100% LIHTC: recert annually

HUDCertify annually based on the

anniversary date.Interim certifications must be conducted

for certain income and household changes.

RD

Annually Possible interim recerts, may require third party verifications.

HOME/OHTF/NHTF

Annually

— Tenant Files Organization and Recordkeeping

SECTION FOUR:TENANT FILES ORGANIZATIONS ANDRECORDKEEPING


OHFA has developed a new recommended best-practice tenant file organization. This best practice will help streamline the file audit process and simplify how LIHTC files are arranged. This is not a mandatory practice.

• All clarification records and calculations should be directly in front or behind the income or asset verifications they support.

• Each year should be separated with colored paper, label or a tab.

BACKDATINGBackdating is unacceptable when trying to correct documentation in tenant files. It is fraud! Always use the date based on when the tenant actually signs the TIC.

Remember that compliance software programs also print the date the form is being printed on the bottom so backdating is easily identifiable. If there are any discrepancies with the dates, use a clarification record to explain the issue.

RESULTS OF NONCOMPLIANCEOrganized files are critical for compliance. If the recommended best-practice tenant file organization is not used, OHFA may note it on the compliance review report and require training.

Tenant Income Certification (TIC)

Sworn Income and Asset Statement

All income verifications

All asset verifications

Student Status Certification

Move-In/Annual/Move-out Inspection Forms

Lease

LIHTC or HUD Lease Addendum

VAWA Lease Addendum (HUD-91067)

Other LeaseAddendum

Unit Number:

Applicant / Resident Name:

Project Name:

Certification / Recertification Date:

Means of Clarification: Phone Conversation

Person-to-Person Conversation

Other: (please state below)

Name of Person Supplying Information:

Title:

Date of Clarification

Company / Organization:

Reason for Clarification:

Explanation for Clarification Given:

Name & Title of Person Receiving above information Date

PC-E20Rev. 12-09

Clarification Record

Compliance Tip

Keep HUD Enterprise Income Verification (EIV) Documents SEPARATE from the Tax Credit file. According to guidance issued by HUD in May 2008, EIV data can be used to verify tenant income for specific HUD multifamily housing programs but cannot be used to verify tenant income for LIHTC program requirements. The information in the EIV system is extremely sensitive; it is protected under the Federal Privacy Act and HUD’s agreements with the third-party sources of the information. Unauthorized disclosure of EIV information can result in civil and criminal penalties.


RECORDKEEPING AND RETENTIONThe following requirements are found in IRS Regulation 1.42-5:

• The owner of a low-income housing project is required to keep records for each qualified low-income building in the project.

• Resident files that initially qualified the unit as tax credit units must be retained for 21 years.• Other resident files must be maintained for six years after move out.

In accordance with Revenue Procedure 97-22, records can be kept electronically but must be available the day of an OHFA compliance review.

Please note: Extended use agreements may require files to be kept for a longer period of time.

Compliance Tip: Be familiar with IRS Revenue Procedure 97-22 and IRS Revenue Ruling 2004-82.


KNOWLEDGE CHECK MODULE

1. The recommended tenant file organization system suggests the student certification be placed on the left side of a file.

� True

� False

2. What steps are required in order to income qualify a household? (check all that apply)

� The applicant fills out a self-disclosure of income, assets and student status (the OHFA Sworn Income and Asset Statement or SIAS) and Student Status Certification.

� Supporting documentation is gathered

� All income is verified and calculated based on the information gathered and current circumstances.

� A Tenant Income Certification is signed by the resident(s) and property manager

3. How long should original tenant files be kept?

� 5 years

� 15 years

� 30 years

� 21 years

4. When calculating income for the LIHTC program always use the gross amount.

� True

� False

5. The Under $5,000 Asset Form is not required if an applicant certifies he/she has zero assets.

� True

� False

6. Which is not a LIHTC Student Rule exception?

� Receiving assistance under Title IV of Social Security Act (specifically Temporary Assistance for Needy Families (TANF)

� Married and eligible to file a joint return

� Enrolled in government sponsored job training program

� Is an independent student that is at least 24 years old

� Previously under the care and placement responsibility of the local county children services agency (i.e. foster care)

� Single parent with a dependent child (The parent is not a dependent of another individual AND the child is a dependent only of the household member or of the other non- resident parent)

— OHFA Inspections

SECTION FIVE:OHFA INSPECTIONS


THE BRIGHT LINEThe “Bright Line” is an IRS concept related to the audit process, when non-compliance is corrected prior to an audit.

• The Bright Line date is established by the date of the Audit Notice letter OHFA sends to notify the owner of an upcoming audit.

• Any item of non-compliance that is discovered and fixed by an owner before this date will not lead to the issuance of an 8823.

→ 1st Example:

The Review Notice is sent on September 1 indicating that OHFA will be conducting a review on September 17th. In this example, the Bright Line date is September 1.

During an internal audit on August 15, it was discovered that the employment verification was not as complete as it should have been for a move-in that occurred earlier in the year. The manager contacts the employer, clarifies the information and proceeds to make the needed corrections to the file and the TIC.

The tenant comes in to review the corrections and to date and initial the changes with the manager on August 18.

Since this was discovered and fixed prior to the Bright Line date of September 1, OHFA would not issue an 8823 based solely on this non-compliance correction.

→ 2nd Example:

On that same internal audit (August 15), the manager

discovers another file missing a pension verification. The verification is sent out but is not received until September 5.

The manager proceeds to make the needed corrections to the file and the TIC. The tenant comes in to the office on September 10th and initial the corrections with the manager.

Since this was discovered before but fixed after the Bright Line date of September 1, this would lead to a finding on the Compliance Review Report.


IRS REGULATION 1.42-5This regulation addresses how state housing credit agencies should monitor for compliance with the LIHTC program requirements, and was revised on February 26, 2019. Under the inspection provision, OHFA has the responsibility to perform an on-site inspection of all low- income housing credit projects through the end of the compliance period. OHFA also inspects properties in the Extended Use Period.

Previous Inspection RequirementsWhile the final regulations carry forward many of the requirements in the temporary regulations published February 25, 2016, a few of the provisions were changed prior to being adopted in the final regulations.

The following are the key areas where the inspection requirements substantively changed, and below are the previous requirements:

• Sample Size – Previously, under the temporary regulations and through the publication of Revenue Procedure 2016-15, the required sample size for inspection was the lesser of 20% of the low-income units or the number of low-income units reflected in the Minimum Unit Sample Size Chart in the Revenue Procedure.

• Reasonable Notice – The temporary regulations provided that a Housing Finance Agency could give an owner reasonable notice of 30 days of an upcoming project inspection.

Final Inspection ProvisionUnder the provision the inspection includes physically inspecting the units, review of files (TIC and supporting documents), inspect all common spaces and the exteriors of all buildings that make up the property. OHFA must review any local health, safety or building code violations.

The final regulation requires:• Inspection Cycle/Timing – First inspection by end of the second calendar year the last building is placed in service

– and – at least once every 3 years thereafter.• Sample Size/Number of Low-income Units – The required minimum sample size for low-income unit and

certification inspections is now solely based on the published chart identified as Table to Paragraph (c) (2)(iii) in the final regulations.

→ The chart lists a set number of units based on the low-income housing credit project as defined by the IRS. Project is defined based on the election made for 8b on the 8609.

→ This sample size chart matches the HUD Minimum Unit Sample Size Reference Chart that is used with REAC inspections with one exception that is defining both physical and file review minimums.

• Selection Method – the selection method must be random, and must not select the same units and files if they would be reviewed on separate days.

• Limited Advanced Notice – OHFA cannot under any circumstances provide advance notice on the units/files being inspected; however, reasonable notice may be given for a review. OHFA will notify the owner the day of the inspection of the units and files being inspected. For inspections on multiple days, notice will be given each day.


• Reasonable Notice – Agencies may give reasonable notice for a review/onsite inspection. Reasonable notice is generally no more than 15 days.

→ Extraordinary circumstances may be considered that would prevent the review from review/onsite inspection from being carried out within 15 days. Extraordinary circumstances include, but are not limited to, natural disasters and severe weather conditions. Review/onsite inspection will then be conducted as soon as practicable.

• Alternative On-Site Inspections – Agencies are permitted to inspect units based on the REAC protocol. This provision allows for use of the Physical Inspection Initiative between HUD, RD, and state HFAs. This method may be used if the following are met: 1) vacant and occupied are in the sample, 2) REAC UPCS software or HUD accepted software is used, 3) inspection is conducted by a HUD or HUD-Certified REAC inspector, and 4) results are reviewed and scored in HUD’s secure system.

Number of Low-Income Units in the Low-Income Housing Project

Number of Low-Income Units Selected for Inspection or Low-

Income Certification Review

(Minimum Unit Sample Size)1 12 23 34 4

5-6 57 6

8-9 710-11 812-13 9

14 - 16 1017 - 18 1119 - 21 1222 - 25 1326 - 29 1430 - 34 1535 - 40 1641 - 47 1748 - 56 1857 - 67 1968 - 81 2082 - 101 21

102 - 130 22131 - 175 23176 - 257 24258 - 449 25450 - 1461 26

1462 - 9999 27


Physical Inspections

OHFA uses Uniform Physical Condition Standards (UPCS) when conducting physical inspections. Findings for UPCS are either life threatening or non-life threatening and has a severity level. There are three severity levels that reflect the extent of damage associated with each deficiency. The following outlines inspectable areas and items under the UPCS inspection protocol.

Inspectable Areas Building Exteriors Site Units• Site• Building Exteriors• Building Systems• Common Areas• Units

• Doors• Fire Escapes• Lighting• Roofs• Walls• Windows

• Fences/Gates• Grounds• Mailboxes• Signs• Parking lots• Driveways• Play areas• Refuse Disposal• Storm Drains• Infestations

Common Areas• Basement/Garage• Mechanical Room• Community Room• Day Care• Halls/Stairs• Kitchen• Laundry• Offices• Pools• Restrooms• Storage

• Bathroom• Call for Aid• Ceilings• Doors• Floors• Walls• Electrical• Lighting• Outlets• Hot Water• HVAC• Smoke Detector• Stairs• Windows

Health and Safety• Air Quality• Electrical Hazards• Elevator• Emergency/Fire Exits• Flammables• Garbage• Debris• Hazards• Infestations

Building Systems• Domestic Water• Electrical System• Elevators• Emergency Power• Fire Protection• HVAC• Sanitary System

Most Common Physical Inspection Findings• Loose toilet bases• Ground Fault Circuit Interrupters (GFCIs) not

installed correctly or not functional• Missing/damaged light fixtures• Open breaker slots or missing covers on electrical

panels• Missing window screens• Smoke detectors with missing or chirping batteries• Furniture blocking egress in bedrooms

Common File Findings

The common file findings include:• Income and/or assets listed on the Sworn Income &

Asset Statement (SIAS), but not listed on the Tenant Income Certification (TIC)

• Management agent not signing and/or dating the TIC or SIAS

• Assets not verified by a third party or the Under• $5,000 in Asset Form was used when not

permissible due to funding sources. Verifications are not dated by verifying source

• Correction fluid used on the forms• Incorrect utility allowance used• Verifications over 120 days old• Calculations for income and/or assets are not clear• Changes made to either the TIC or SIAS are not

initialed and dated by BOTH the resident and the management agent on the same day initialed and dated by BOTH the resident and the management agent on the same day.


OHFA Inspection Software

Beginning in March of 2019, OHFA began utilizing DevCo Inspection for onsite inspections/reviews. Owners/ management agents must use this software to respond to a property review. This software can be accessed by going to the DevCo Online System login screen, and after logging into DevCo clicking DevCo Inspection

from the APPS button on the right side of the banner at the top of the page. DevCo Inspection has five main areas that are used by owners/management. Over time additional features may be added based on need.

Audits Summary

Lists all audits that are currently open for your portfolio that is in DevCo. Each project will individually list

the status of the current review, if OHFA is awaiting response and if findings were found as part of the audit. The statuses include: Audit Pending, Audit In-progress, Review Report, See Report Comments, Pending Follow- up and Archive Audit.

Project

Gives a basic summary of project info and links to features needed to respond to the audit/review. The Audit Stream, Communications (review/audit level) and Reports are all accessible from this area.

Audit Stream

This is the primary area for responses to compliance reviews. It is specific to the project and generally the current review/audit. It lists all findings, follow-up requests, and various responses specific to review under “This Audit”. With this feature written comments can be added, documentation specific to a correction/ finding can be added, or pictures documenting issues or corrections can be utilized. Submissions in this area are based on individual findings and the compliance auditor will mark issues resolved as the corrections are reviewed or request additional documentation.

Communications

This area provides two areas/levels for secure communications with OHFA or DevCo Inspection users in your organization. The communications area is not for finding/review responses; use the Audit Stream for these. “Overall” is for general questions or comments not specific to a review or project. “Review/Audit Specific” is for questions or comments related to project or review.

Reports

This area will include copies of any reports issued by OHFA that are specific to the review. This includes but may not be limited to compliance review reports and the Exigent Health & Safety (EHS) findings, such as smoke detector violations. It is mandatory for owners to be registered in DevCo to receive reports.

Noncompliance

The compliance review report is used to notify the owner of all noncompliance found during an audit.

Consequences with OHFA

Partners or organizations can be placed in Not Good Partnership with OHFA. This can occur when there are uncorrected issues, unresponsive partners, and if systemic noncompliance occurs. This could affect application scoring for future projects and/or require training.

IRS Notification

OHFA is required to notify both the owner and the IRS of any noncompliance. This notification is via issuance of form 8823 Report of Noncompliance to the IRS.

Noncompliance that is corrected during the correction period or even the day of an audit has to be reported to the IRS as a corrected 8823. Findings that have not been corrected will be reported as uncorrected 8823s.

Form 8823(Rev. June 2011)Department of the Treasury Internal Revenue Service

Low-Income Housing Credit Agencies Report of Noncompliance or Building DispositionNote: File a separate Form 8823 for each building that is disposed of or goes out of compliance.

OMB No. 1545-1204

Check here if this is an amended return ▶

1 Building name (if any). Check if item 1 differs from Form 8609 ▶ IRS Use Only

Street address

City or town, state, and ZIP code

2 Building identification number (BIN)

3 Owner’s name. Check if item 3 differs from Form 8609 ▶

Street address


4 Owner’s taxpayer identification number

EIN SSN

5 Total credit allocated to this BIN . . . . . . . . . . . . . . . . . . . . . . . . ▶ $ 6 If this building is part of a multiple building project, enter the number of buildings in the project . . . . . . . . . ▶

7 a Total number of residential units in this building . . . . . . . . . . . . . . . . . . . . . . . ▶

b Total number of low-income units in this building . . . . . . . . . . . . . . . . . . . . . . ▶

c Total number of residential units in this building determined to have noncompliance issues . . . . . . . . . . ▶

d Total number of units reviewed by agency (see instructions) . . . . . . . . . . . . . . . . . . . ▶

8 Date building ceased to comply with the low-income housing credit provisions (see instructions) (MMDDYYYY) . .

9 Date noncompliance corrected (if applicable) (see instructions) (MMDDYYYY) . . . . . . . . . . . .

10 Check this box if you are filing only to show correction of a previously reported noncompliance problem . . . . . . . ▶

11 Check the box(es) that apply: Out of

compliance Noncompliance

corrected

a Household income above income limit upon initial occupancy . . . . . . . . . . . . . . . . .

b Owner failed to correctly complete or document tenant’s annual income recertification . . . . . . . . .

c Violation(s) of the UPCS or local inspection standards (see instructions) (attach explanation) . . . . . . . .

d Owner failed to provide annual certifications or provided incomplete or inaccurate certifications . . . . . . .

e Changes in Eligible Basis or the Applicable Percentage (see instructions) . . . . . . . . . . . . .

f Project failed to meet minimum set-aside requirement (20/50, 40/60 test) (see instructions) . . . . . . . .

g Gross rent(s) exceed tax credit limits . . . . . . . . . . . . . . . . . . . . . . . .

h Project not available to the general public (see instructions) (attach explanation) . . . . . . . . . . .

i Violation(s) of the Available Unit Rule under section 42(g)(2)(D)(ii) . . . . . . . . . . . . . . . .

j Violation(s) of the Vacant Unit Rule under Reg. 1.42-5(c)(1)(ix) . . . . . . . . . . . . . . . . .

k Owner failed to execute and record extended-use agreement within time prescribed by section 42(h)(6)(J) . . . .

l Low-income units occupied by nonqualified full-time students . . . . . . . . . . . . . . . . .

m Owner did not properly calculate utility allowance . . . . . . . . . . . . . . . . . . . .

n Owner has failed to respond to agency requests for monitoring reviews . . . . . . . . . . . . . .

o Low-income units used on a transient basis (attach explanation) . . . . . . . . . . . . . . . .

p Building is no longer in compliance nor participating in the section 42 program (attach explanation) . . . . . .

q Other noncompliance issues (attach explanation) . . . . . . . . . . . . . . . . . . . .

12 Additional information for any item above. Attach explanation and check box . . . . . . . . . . . . . . . ▶

13 a Building disposition by Sale Foreclosure Destruction Other (attach explanation)

b Date of disposition (MMDDYYYY)

c New owner’s name

Street address


d New owner’s taxpayer identification number

EIN SSN

14 Name of contact person

15 Telephone number of contact person

Ext. Under penalties of perjury, I declare that I have examined this report, including accompanying statements and schedules, and to the best of my knowledge and belief, it is true, correct, and complete.

▲

Signature of authorizing official

▲

Print name and title

▲

Date (MMDDYYYY)

For Paperwork Reduction Act Notice, see instructions. Cat. No. 12308D Form 8823 (Rev. 6-2011)

— Violence Against Wom

en Act

SECTION SIX:VIOLENCE AGAINST

WOMEN ACT


WHAT IS VAWA?The United States passed the federal law The Violence Against Women Act (VAWA) of 1994 (Title IV, sec 40001-40703 of the Violent Crime Control and Law Enforcement Act of 1994) on September 13, 1994. VAWA's origins were from the collective effort of the battered women's movement, law enforcement agencies, sexual assault advocates, the courts, and attorneys who urged Congress to create legislation that protects women from intimate partner violence. VAWA requires reauthorization by Congress every 5 years. In 2013, Congress reauthorized VAWA to include the LIHTC program as a covered program. The VAWA protections apply to all victims of domestic violence and other related crimes, regardless of gender.

Housing providers may not deny assistance under, terminate a tenant from participation in, or evict a tenant from housing on the basis of or as a direct result of the fact that the tenant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking.

If an individual has a poor rental or credit history, or a criminal record, or other adverse factors that directly result from being a victim of domestic violence, dating violence, sexual assault, or stalking, the individual cannot be denied assistance under a HUD program if the individual otherwise qualifies for the program.

What Programs Do VAWA Cover?Housing provider must provide HUD’s Notice of Occupancy Rights (form HUD-5380) and the “Certification of Domestic Violence, Dating Violence, Sexual Assault, or Stalking, and Alternate Documentation” (form HUD-5382) for all multifamily housing programs to an applicant for or tenants of housing when:

• Applicant is denied tenancy or assistance• At the time of move-in, and• With any notification of eviction or termination of assistance

2005

Man

date

Public HousingSection 8 (HVC & PB)Section 202

• Supportive housing for the elderly

Section 811

ADD

ED P

rogr

ams

VAW

A 20

13:

• LIHTC• HOME• Housing Trust Fund• USDA Rural Housing (RD)• HUD’s McKinney-Vento

homelessness programs• Section 221 (d)(3) Below Market

Interest Rate (BMIR)• Section 236 Rental Program• HOPWA housing program

Who does VAWA Protect?

Elig

ible

• Applicants and tenants who are victims of domestic violence, dating violence, sexual assault or stalking.

• Not limited to women. Available to all, without regard to sex, gender identity or sexual orientation.

Not E

ligib

le

• Guests, unassisted household members and live-in aides not eligible for protections limited to tenants.

Note: As a reasonable accommodation, a tenant can request VAWA protections if a live-in aide is a victim and may request an emergency transfer for household.


en Act

HUD Emergency Transfer Plan (ETP):

One of the key elements of VAWA’s housing protections are emergency transfers which allows for survivors to move to another safe and available unit if they fear for their life and safety. VAWA required HUD and owners of multifamily properties to adopt a model emergency transfer plan for housing providers and to explain how housing providers must address their tenants’ requests for emergency transfers.

• The ETP identifies tenants who are eligible for an emergency transfer, the documentation needed to request an emergency transfer, confidentiality protections, how an emergency transfer may occur, and guidance to tenants on safety and security.

• The ETP must allow survivors to transfer to another safe and available unit if: → The tenant expressly requests the transfer; AND → The tenant reasonably believes they are threatened with imminent harm if they remain in the same unit; or if

the tenant was a victim of sexual assault that occurred in the 90 days preceding the request.

An ETP must ensure strict confidentiality so that the housing provider does not disclose location of new unit to abuser. There is no limit on the number of transfer requests a victim may make.

Tenant Selection Plan (TSP):• May establish an admission preference for victims of domestic violence, dating violence, sexual assault, or stalking.• Describe policies for assisting a tenant in making an internal and external emergency transfer under VAWA.• Describe the housing provider ’s right to bifurcate a lease to enable victims of domestic violence to remain in their

own, or another HUD assisted unit.

The HUD Model ETP contains only general provisions of an ETP that apply across HUD programs. Adoption of HUD’s model plan without further information is not sufficient to meet the housing provider’s responsibility to adopt an emergency transfer plan. Housing providers must consult applicable regulations and program-specific HUD guidance when developing their own emergency transfer plans, to ensure their plans contain all required elements.


OHFA Requirements for VAWAAdherence to the requirements of VAWA is required for all OHFA multifamily funding programs, including:

• LIHTC, HOME, National Housing Trust Fund (NHTF), Ohio Housing Trust Fund (OHTF) and Ohio 811 Project Rental Assistance Program. Properties that received funding of HOME and NHTF are required to follow the HUD 2013 VAWA Final Rule. Although the IRS has not provided guidance on how to comply with VAWA, OHFA requires properties with LIHTC funding to follow the HUD 2013 VAWA Final Rule when implementing VAWA Rule protections for their tenants.

Lease Bifurcation• A housing provider may “bifurcate” a lease to evict a tenant who commits domestic violence while preserving the

survivor ’s tenancy rights• If the individual who is evicted is the sole tenant eligible to receive the housing assistance, the housing provider

must provide the remaining tenant an opportunity to establish eligibility or a reasonable time to move or establish eligibility for another covered housing program. 34 U.S.C.A. § 12491(b)(3) (B)(ii) (90 DAYS)

Documentation of AbuseA tenant may choose to provide ANY form of documentation in response to a covered housing program’s request for documentation (police report, HUD self-certified form, statement from lawyer).

Under the VAWA Final Rule, housing providers are not required to ask for documentation when an individual presents a claim for VAWA protections. The housing provider may instead accept information from a tenant through a verbal statement with no further documentation. It is strongly recommended that owners develop written policies on how and under what circumstances a verbal statement will be accepted.

Housing providers may accept information from the tenant through a verbal statement with no further documentation, or may request in writing the applicant/ tenant document the claim of domestic violence, dating violence, sexual assault, or stalking.

• An applicant or tenant has 14 business days from receipt of the written request to provide documentation.• An applicant or tenant satisfies the written request by providing any of the documents as described under 24 CFR

5.2007(b)(1).• A housing provider may extend the 14-business day period.

The Ohio Domestic Violence Network’s toll free number is 800-934-9840.


en Act

REQUIRED VAWA FORMS

NOTICE OF OCCUPANCY RIGHTS UNDERTHE VIOLENCE AGAINST WOMEN ACT

U.S. Department of Housing and Urban DevelopmentOMB Approval No. 2577-0286

Expires 06/30/2017

Form HUD-5380(12/2016)

[Insert Name of Housing Provider1]

Notice of Occupancy Rights under the Violence Against Women Act2

To all Tenants and Applicants

The Violence Against Women Act (VAWA) provides protections for victims of domestic

violence, dating violence, sexual assault, or stalking. VAWA protections are not only available

to women, but are available equally to all individuals regardless of sex, gender identity, or sexual

orientation.3 The U.S. Department of Housing and Urban Development (HUD) is the Federal

agency that oversees that [insert name of program or rental assistance] is in compliance with

VAWA. This notice explains your rights under VAWA. A HUD-approved certification form is

attached to this notice. You can fill out this form to show that you are or have been a victim of

domestic violence, dating violence, sexual assault, or stalking, and that you wish to use your

rights under VAWA.”

Protections for Applicants

If you otherwise qualify for assistance under [insert name of program or rental assistance],

you cannot be denied admission or denied assistance because you are or have been a victim of

domestic violence, dating violence, sexual assault, or stalking.

Protections for Tenants

1 The notice uses HP for housing provider but the housing provider should insert its name where HP is used. HUD’s program-specific regulations identify the individual or entity responsible for providing the notice of occupancy rights.2 Despite the name of this law, VAWA protection is available regardless of sex, gender identity, or sexual orientation.3 Housing providers cannot discriminate on the basis of any protected characteristic, including race, color, national origin, religion, sex, familial status, disability, or age. HUD-assisted and HUD-insured housing must be made available to all otherwise eligible individuals regardless of actual or perceived sexual orientation, gender identity, or marital status.

HUD Notice of Occupancy Rights under VAWA form 5380 (8 pages)


MODEL EMERGENCY TRANSFER PLAN FOR VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLECE, SEXUAL ASSAULT, OR STALKING

U.S. Department of Housing and Urban DevelopmentOMB Approval No. 2577-0286

Expires 06/30/2017

Form HUD-5381(12/2016)

[Insert name of covered housing provider]

Model Emergency Transfer Plan for Victims of Domestic Violence, Dating Violence,

Sexual Assault, or Stalking

Emergency Transfers

[Insert name of covered housing provider (acronym HP for purposes of this model plan)] is

concerned about the safety of its tenants, and such concern extends to tenants who are victims of

domestic violence, dating violence, sexual assault, or stalking. In accordance with the Violence

Against Women Act (VAWA),1 HP allows tenants who are victims of domestic violence, dating

violence, sexual assault, or stalking to request an emergency transfer from the tenant’s current

unit to another unit. The ability to request a transfer is available regardless of sex, gender

identity, or sexual orientation.2 The ability of HP to honor such request for tenants currently

receiving assistance, however, may depend upon a preliminary determination that the tenant is or

has been a victim of domestic violence, dating violence, sexual assault, or stalking, and on

whether HP has another dwelling unit that is available and is safe to offer the tenant for

temporary or more permanent occupancy.

This plan identifies tenants who are eligible for an emergency transfer, the documentation

needed to request an emergency transfer, confidentiality protections, how an emergency transfer

may occur, and guidance to tenants on safety and security. This plan is based on a model

1 Despite the name of this law, VAWA protection is available to all victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation.2 Housing providers cannot discriminate on the basis of any protected characteristic, including race, color, national origin, religion, sex, familial status, disability, or age. HUD-assisted and HUD-insured housing must be made available to all otherwise eligible individuals regardless of actual or perceived sexual orientation, gender identity, or marital status.

HUD Model Emergency Transfer Plan form 5381 (4 pages)


en Act

Certification of Domestic Violence form 5382 (2 pages)

Form HUD-5382(12/2016)

CERTIFICATION OF U.S. Department of Housing OMB Approval No. 2577-0286 DOMESTIC VIOLENCE, and Urban Development Exp. 06/30/2017DATING VIOLENCE,SEXUAL ASSAULT, OR STALKING, AND ALTERNATE DOCUMENTATION

Purpose of Form: The Violence Against Women Act (“VAWA”) protects applicants, tenants, and program participants in certain HUD programs from being evicted, denied housing assistance, or terminated from housing assistance based on acts of domestic violence, dating violence, sexual assault, or stalking against them. Despite the name of this law, VAWA protection is available to victims of domestic violence, dating violence, sexual assault, and stalking, regardless of sex, gender identity, or sexual orientation.

Use of This Optional Form: If you are seeking VAWA protections from your housing provider, your housing provider may give you a written request that asks you to submit documentation about the incident or incidents of domestic violence, dating violence, sexual assault, or stalking.

In response to this request, you or someone on your behalf may complete this optional form and submit itto your housing provider, or you may submit one of the following types of third-party documentation:

(1) A document signed by you and an employee, agent, or volunteer of a victim service provider, an attorney, or medical professional, or a mental health professional (collectively, “professional”) from whom you have sought assistance relating to domestic violence, dating violence, sexual assault, or stalking, or the effects of abuse. The document must specify, under penalty of perjury, that theprofessional believes the incident or incidents of domestic violence, dating violence, sexual assault, or stalking occurred and meet the definition of “domestic violence,” “dating violence,” “sexual assault,” or “stalking” in HUD’s regulations at 24 CFR 5.2003.

(2) A record of a Federal, State, tribal, territorial or local law enforcement agency, court, or administrative agency; or

(3) At the discretion of the housing provider, a statement or other evidence provided by the applicant or tenant.

Submission of Documentation: The time period to submit documentation is 14 business days from the date that you receive a written request from your housing provider asking that you provide documentation of the occurrence of domestic violence, dating violence, sexual assault, or stalking. Your housing provider may, but is not required to, extend the time period to submit the documentation, if you request an extension of the time period. If the requested information is not received within 14 business days of when you received the request for the documentation, or any extension of the date provided by your housing provider, your housing provider does not need to grant you any of the VAWA protections. Distribution or issuance of this form does not serve as a written request for certification.

Confidentiality: All information provided to your housing provider concerning the incident(s) of domestic violence, dating violence, sexual assault, or stalking shall be kept confidential and such details shall not be entered into any shared database. Employees of your housing provider are not to have access to these details unless to grant or deny VAWA protections to you, and such employees may not disclose this information to any other entity or individual, except to the extent that disclosure is: (i) consented to by you in writing in a time-limited release; (ii) required for use in an eviction proceeding or hearing regarding termination of assistance; or (iii) otherwise required by applicable law.


Form HUD-5383(12/2016)

EMERGENCY TRANSFER U.S. Department of Housing OMB Approval No. 2577-0286REQUEST FOR CERTAIN and Urban Development Exp. 06/30/2017VICTIMS OF DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, OR STALKING

Purpose of Form: If you are a victim of domestic violence, dating violence, sexual assault, or stalking, and you are seeking an emergency transfer, you may use this form to request an emergency transfer and certify that you meet the requirements of eligibility for an emergency transfer under the Violence Against Women Act (VAWA). Although the statutory name references women, VAWA rights and protections apply to all victims of domestic violence, dating violence, sexual assault or stalking. Using this form does not necessarily mean that you will receive an emergency transfer. See your housing provider’s emergency transfer plan for more information about the availability of emergency transfers.

The requirements you must meet are:

(1) You are a victim of domestic violence, dating violence, sexual assault, or stalking.If your housing provider does not already have documentation that you are a victim of domestic violence, dating violence, sexual assault, or stalking, your housing provider may ask you for such documentation. In response, you may submit Form HUD-5382, or any one of the other types of documentation listed on that Form.

(2) You expressly request the emergency transfer. Submission of this form confirms that you have expressly requested a transfer. Your housing provider may choose to require that you submit this form, or may accept another written or oral request. Please see your housing provider’s emergency transfer plan for more details.

(3) You reasonably believe you are threatened with imminent harm from further violence if you remain in your current unit. This means you have a reason to fear that if you do not receive a transfer you would suffer violence in the very near future.

OR

You are a victim of sexual assault and the assault occurred on the premises during the 90-calendar-day period before you request a transfer. If you are a victim of sexual assault, then in addition to qualifying for an emergency transfer because you reasonably believe you are threatened with imminent harm from further violence if you remain in your unit, you may qualify for an emergency transfer if the sexual assault occurred on the premises of the property from which you are seeking your transfer, and that assault happened within the 90-calendar-day period before you submit this form or otherwise expressly request the transfer.

Submission of Documentation: If you have third-party documentation that demonstrates why you are eligible for an emergency transfer, you should submit that documentation to your housing provider if it is safe for you to do so. Examples of third party documentation include, but are not limited to: a letter or other documentation from a victim service provider, social worker, legal assistance provider, pastoral counselor, mental health provider, or other professional from whom you have sought assistance; a current restraining order; a recent court order or other court records; a law enforcement report or records; communication records from the perpetrator of the violence or family members or friends of the perpetrator of the violence, including emails, voicemails, text messages, and social media posts.

Emergency Transfer Request form 5383 (2 pages)


en Act

HUD VAWA Lease Addendum form 91067 (1 page)

VIOLENCE, DATING VIOLENCE U.S. Department of Housing OMB Approval No. 2502-0204 OR STALKING and Urban Development Exp. 6/30/2017

Office of Housing

Form HUD-91067(9/2008)

LEASE ADDENDUMVIOLENCE AGAINST WOMEN AND JUSTICE DEPARTMENT REAUTHORIZATION ACT OF 2005

TENANT LANDLORD UNIT NO. & ADDRESS

This lease addendum adds the following paragraphs to the Lease between the above referenced Tenant and Landlord.

Purpose of the Addendum

The lease for the above referenced unit is being amended to include the provisions of the Violence Against Women and Justice Department Reauthorization Act of 2005 (VAWA).

Conflicts with Other Provisions of the Lease

In case of any conflict between the provisions of this Addendum and other sections of the Lease, the provisions of this Addendum shall prevail.

Term of the Lease Addendum

The effective date of this Lease Addendum is ______________. This Lease Addendum shallcontinue to be in effect until the Lease is terminated.

VAWA Protections

1. The Landlord may not consider incidents of domestic violence, dating violence or stalking as serious or repeated violations of the lease or other “good cause” for termination of assistance, tenancy or occupancy rights of the victim of abuse.

2. The Landlord may not consider criminal activity directly relating to abuse, engaged in by a member of a tenant’s household or any guest or other person under the tenant’s control, cause for termination of assistance, tenancy, or occupancy rights if the tenant or an immediate member of the tenant’s family is the victim or threatened victim of that abuse.

3. The Landlord may request in writing that the victim, or a family member on the victim’s behalf, certify that the individual is a victim of abuse and that the Certification of Domestic Violence, Dating Violence or Stalking, Form HUD-91066, or other documentation as noted on the certification form, be completed and submitted within 14 business days, or an agreed upon extension date, to receive protection under the VAWA. Failure to provide the certification or other supporting documentation within the specified timeframe may result in eviction.

_________________________________________ __________________Tenant Date

_________________________________________ __________________Landlord Date


SECTION SEVEN:SECTION SEVEN:DEVCO AND DEVCO AND

ANNUAL REPORTINGANNUAL REPORTING

— DevCo and Annual Reporting

WHAT IS DEVCO?DevCo is OHFA's internal database and allows organizations working with OHFA to manage information about their developments/properties. There are two sections in DevCo; DevCo Inspection and DevCo Compliance. DevCo Compliance includes access to tenant income certifications, utility allowances and annual owner certifications. Owners and property management agents can find guidance on DevCo reporting features through the DevCo homepage including the Compliance User Guide, DevCo Videos and DevCo Compliance FAQs. The DevCo webpage also contains alerts and announcements on database release updates.

Using and Accessing DevCoDevCo is OHFA's internal database and allows organizations working with OHFA to manage information about their developments/properties. There are two sections in DevCo; OHFA Inspect and DevCo Compliance. DevCo Compliance includes access to tenant income certifications, utility allowances and annual owner certifications. Owners and property management agents can find guidance on DevCo reporting features through the DevCo homepage including the Compliance User Guide, DevCo Videos and DevCo Compliance FAQs. The DevCo webpage also contains alerts and announcements on database release updates.

Tenant Event TypesHere are the seven event types in DevCo and their common associated terms. Tenant data events can be entered manually or by using the XML upload feature:

Move-In – Also known as the Initial Certification (IC). When the household first become qualified and move-in.

Move-Out – The household move-outs of a unit.

Recertification – recertifying the household’s income and student status. Needed annually for any units with HDAP funding or properties with market rate units.

Transfer-Out – Household is transferring to a different unit. The transfer-In event is automatically populated once a transfer out event is entered in DevCo. The transfer out event date should be one day before the household moves into the new unit in order for the transfer in date to be correct.

Composition Update – Also known as an Interim Recertification (IR). Needed when adding or removing non-head of household members.

Rent Update – Also known as an IR. Needed when the tenant rent portion has changed.

Student Update – Also known as an IR. This is an annual update confirming or changing the student status of LIHTC units. The event date is the same date that your household completes the student status certification.

OHFA now uses the NAHMA 4.0 standard for the XML schema. You are still able to use the 2.0 stand for uploads but we recommend uses the 4.0 for more complete data entries.

Creating TICsTIC’s are only needed for events that require tenant’s signatures. This includes move-ins, recertifications, transfers, and composition updates. The rent and income limits are calculated on the TICs. All move-in and recertification TICs used for the housing tax credits display the maximum income and maximum rent limit amount based on the 40/60 or 20/50 set-aside selection made on the 8609s. Meaning 40/60 MSA properties will show the 60% limits and 20/50 MSA properties will show the 50% limits on the TIC. Average Income properties will show the maximum rent and income limits based on the percentage chosen while entering the event. HERA Special limits are used as needed if they apply to a property.

HDAP only funded projects will not show the rent and income limits on the TIC at this time. Novogradac’s income and rent calculator is a tool you can use in these cases to check your income and rent limits.

Any questions or inquiries regarding DevCo must be submitted to the Compliance and DevCo Helpdesk.

Compliance Tip: Update all of your tenant events in DevCo no later than the 10th of each month for the previous month. You will also need to update all tenant events when you are notified that OHFA will be visiting your project to conduct an audit.

Owner/General PartnerOnline - Property Owner

SyndicatorInvestor

OC Viewer

Primary ManagerCompliance Manager

Regional Manager

Online - Property Manager

On-Site MangerOC Editor

Manager

OC Editor


ANNUAL REPORTINGOwners and sponsors of apartment communities funded by OHFA through Housing Tax Credits, gap financing/HDAP (e.g. HOME or Ohio Housing Trust Fund), or Multifamily Bonds must annually submit certifications and reports to remain in compliance with these programs. Owners are required to submit Annual Owner Certifications and Tenant Data via OHFA’s online reporting system. OHFA recommends owners start the reporting process as early as possible each year. Annual Owner Reports are due March 1 of each year. The property’s funding and age determine the required reporting. A chart is located on the DevCo compliance page that specifies all requirements.

Low Income Housing Tax Credit (LIHTC) Extended Use Properties

These properties have completed the first 15 years of the compliance period and are required to submit tenant data on all rental activity for the reporting year. Student status updates are not required during the extended use period but are suggested if the project is considering receiving more credits in the future. The extended use annual certification questionnaire must also be submitted.

HDAP Only Properties

Properties with HOME, OHTF, and/or NHTF only are still required to submit tenant data on their HDAP units and complete the gap financing annual certification.

New Projects or Lease-Up Phase

If any unit is qualified during the reporting period, the owner is required to submit the tenant data and annual certification.

Properties Sold During the Reporting Year

If the property was sold during the reporting period, the owner of record at the end of the year is responsible for annual reporting for the entire calendar year. Please make sure you request access to new acquired properties through the DevCo help desk as soon as possible to comply with annual reporting and monthly tenant data entry requirements.

Compliance Tip:

Is your management company fee managing? If so, fee managed companies must hold an active Ohio Broker’s License in accordance with real estate law (Ohio Revised Code Chapter 4735)

No person, partnership, association, or corporation shall act as a real estate broker or real estate salesperson, or advertise or assume to act as such, without first being licensed with the Ohio Department of Commerce.


1. Women and children are only protected under the Violence Against Women Act (VAWA).

� True

� False

2. VAWA protects projects funded by which programs?

� A. Section 8 (HCV and PB)

� B. Low Income Housing Tax Credit (LIHTC)

� C. HOME & Housing Trust Funds

� D. All of the above

� E. Only A & B

3. Tenants and applicants choose which form(s) of verification to give to housing providers to document the occurrence of a VAWA incident.

� True

� False

4. Projects in their Extended Use Period do not need to submit an Annual Owner Certification.

� True

� False

5. Choose the correct statement:

� Projects in the lease up phase do not need to complete an Annual Owner Certification until all of the units have been occupied.

� If a property is sold during a reporting period, the owner at the end of the reporting period is responsible for annual reporting.

� Annual Owner Reports are due February 1 of each year.

� Rent Update events are required in DevCo when the rental assistance amount changes.

6. The Bright Line date is established by the date of the review

� True

� False

KNOWLEDGE CHECK MODULE


SECTION EIGHT:SECTION EIGHT:OHFA’S NEW POLICIESOHFA’S NEW POLICIES

— OHFA’s New Policies

PARTNER RELATIONSHIPS AND ONBOARDING POLICY/ PROCESS

Purpose• Foster and promote positive relationships with all

partners• Designed to ensure understanding of federal and

state regulations for compliance• Tailored to meet the needs of organization’s based

on their experience with OHFA

Both Programs are tailored to each ownership entity, property management agent, or other partners based on their specific needs. OHFA will notify a partner if participation in one of these programs is required.

Who must attend• Ownership entity • Property Management Company• HDAP Recipient

As part of the partnership and onboarding policy/process, required attendees must attend trainings (as defined by OHFA on a case-by-case basis) and in-person meetings. The frequency of the meetings is defined by OHFA.

It is OHFA’s discretion to determine which entities involved with a property will be required to complete the programs.

Onboarding

Reasons for completing the program:• Partners new to OHFA, LIHTC or other multifamily

programs• Owner/property manager has little to no LIHTC

experience

Relationship Building

Reasons for completing the program:• Systemic noncompliance issues• Frequent management company turnover• Repeated unresponsiveness to OHFA• Or other ongoing issues


COMPLIANCE NE XT STEPS MEETING(Formerly Placed in Service Meeting)

Purpose• An opportunity to ensure ownership entities and property management agents are aware of federal and state

regulations stemming from various funding sources before they start reporting to OHFA• Provide technical assistance and open the lines of communication between the organizations• Foster partnership and ensure open communication

Process• Initial Meeting: OHFA staff, namely the Training and Technical Assistance Team, will host and schedule a tailored

Compliance Next Steps Meeting with ownership and management agents generally within 3 weeks of notification of the below criteria being met and prior to lease-up. These meetings may be held by a conference call or in person depending on the circumstances. Representatives of the developer, owner, and management agent must attend the meeting, and the syndicator is invited to join the meeting as well. OHFA recommends agent(s) who processes resident files or is responsible for their final approval attends the meeting.

• Check-in Call(s): OHFA staff may schedule at least one check-in call within six months of the Compliance Next Steps meeting unless OHFA determines that due to partner experience it is not warranted. The check in call is to discuss any further compliance questions or concerns and ensure there is a smooth transition between development and compliance. OHFA staff may schedule an additional check-in meeting for partners as determined by OHFA based on the complexity of funding and experience of the developer, owner agent(s) and/or property management agent(s). This meeting will occur by phone unless otherwise determined by OHFA.

Timeline

Initial compliance next steps meeting which is held based on the following criteria: • New Construction and HDAP-only: when the project reaches the 50 percent construction completion point.

The owner will indicate the 50 percent construction completion point, or estimated point on the OHFA Quarterly Construction Monitoring Form

• Acquisition/Rehabilitation: when the property is transferred to the new ownership entity. Owners must indicate the date, or expected date, of this ownership transfer in the OHFA Quarterly Construction Monitoring Form.

A developer, owner agent(s) and/or property management agent(s) who fail to attend a compliance next steps meeting will not be issued an IRS Form 8609 and may be placed in Not in Good Partnership Status with OHFA.

All correspondence or inquires on the Compliance Next Steps Process must be sent to the [email protected].


OHFA RESOURCESOHFA’s website: www.ohiohome.org

Multifamily Investments (previously Program Compliance)• Asset Management and Project Changes• Compliance Forms• Compliance Policies• Compliance Message Updates & Archive• LIHTC Property Sales• Ohio Housing Locator• OHFA Newsletter• Public Meetings• Renters & Tenant Rights

Technical Assistance• Compliance & DevCo Helpdesk• Compliance FAQs• DevCo Resources• In-Person Training Series• IRS & HUD Guidance• On-Demand & Video Series• Qualified Allocation Plans• Rent & Income Limits

Multifamily Investments’ Contact information

Visit www.ohiohome.org/compliance/contact.aspx for contact information.


Knowledge Check Answers

Module #11. All Apply2. Qualified Allocation Plan3. OHFA Clarification Record and Employment Verification4. True5. False

Module #21. False (on the right side)2. All Apply3. 21 Years4. True5. True6. Is an independent student that is at least 24 years old

Module #31. False (available equally to all household members, regardless of sex, gender, identity, and sexual orientation)2. All of the Above3. True4. False5. If a property is sold during a reporting period, the owner at the end of the reporting period is responsible for annual reporting.6. False (The bright line date is the date the review letter is sent)

57 E Main Street Columbus OH 43215Phone 614.466.7970 Toll Free 888.362 6432Fax 614.644.5393 TDD 614.466.1940Web www.ohiohome.org

The Ohio Housing Finance Agency is an Equal Opportunity Housing entity. Loans are available on a fair and equal basis regardless of race, color, religion, sex, familial status, national origin, military status, disability or ancestry. Please visit www.ohiohome.org for more information.
