Managing Property with Multiple Funding Sources Mountain Plains/ Colorado NAHRO May 16, 2018

Agenda Introductions Alphabet Soup What are the regs? Tips What can we do to help YOU? Send email sign-up around the class.

Introductions CHFA CDOH Participants Name Title Organization Experience with compliance What you hope to learn today

Alphabet Soup What are they? LIHTC HUD HOME CDBG CDOH HTF All the others

Rule Number 1… Always go with the most restrictive compliance requirement

What Are The Regs? Which program is more RESTRICTIVE? CDOH – Beneficiary and Rent Use Covenant (becoming Regulatory Agreement) LIHTC – Land Use Restriction Agreement (LURA) Policies and Procedures Know the rules of each program Determine if there are conflicts Know which units are affected Tracking mechanisms – Have in place for compliance Attend training

Income and Rent Limits Residents must income qualify at or below the program Income Limits. CHFA Income Tables DOH Income Levels HERA limits do not apply to CDOH units Residents must pay rents at or below program rent limits. CHFA Rent Tables DOH Rent Levels HCV and other voucher programs have payment standards rather than rent limits. DOH Payment Standards (Set every October)

Income and Rent Limits Funding Source Rent Table Income Table LIHTC CHFA CDBG (HUD) CDOH HOME HOME (HUD) NHTF (HUD) HTF CDBG-DR (HUD) NSP (HUD) NSP HSP (State) HDG (State) HDLF (State) CHIF (State) This CDOH link is for the HOME program only and it is outdated, this is the link for HCV income and payment standards which the majority of CDOH housing programs use. https://www.colorado.gov/pacific/dola/schedules - KD CHFA – https://www.chfainfo.com/arh/asset/Pages/rent-income-limits.aspx (multifamily loan and low income housing tax credits rent and income limits by year) CDOH - https://www.colorado.gov/pacific/dola/publications-reporting (scroll down to Income and Rent Limits)

Utility Allowance Schedules LIHTC, HUD, CDOH funded before 1.24.15 Local PHA schedule HUD Utility Schedule Model Local Utility Company – actual project specific allowances Energy Consumption Model – Certified Engineer HOME units funded on or after 1.24.15 HUD Utility Schedule Model, or The local PHA schedule is no longer allowed for HOME HUD will issue further guidance on other models https://www.colorado.gov/pacific/dola/schedules

Max Rents for Units with Vouchers LIHTC UNITS The owner MAY NOT charge over the max rent if the resident has a Housing Choice Voucher Lease must include language stating that, in the event of termination of HCV, the owner will not charge a gross rent amount in excess of tax credit max rent limit. CDOH UNITS: Housing Choice Voucher – Voucher holder is restricted. Landlord rents are not prescribed, rather voucher holder may agree to a lease for a unit where rent and utilities exceed the payment standard (there is no “max rent” in this program), but the voucher holder is not allowed to pay more than 40% of their monthly income towards their portion of rent. Project Based Voucher – May charge over max rent up to limit set by voucher program. HCV – That is not true. Landlords can charge whatever they want, the voucher holder is restricted. The voucher holder may agree to a lease for a unit where rent and utilies exceed the payment standard (there is no “max rent” in this program), but the voucher holder is not allowed to pay more than 40% of their monthly income towards their portion of rent.

Initial Certifications All programs require all households to meet certain restrictions and income qualify to qualify for the program All programs require that income is calculated based on HUD rules (HCV guidebook 4350.3 Chapter 5 & 24 CFR Part 5, Subparts E and F and DOH Administrative Plan) The differences Assets over $5,000 Full-time student rule - HOME now follows HCV requirements Tenant Income Certifications Lease terms

Recertifications Recertifications are required for both programs, however, there are differences: 100% LIHTC properties must complete annual certifications; the first annual must be 3rd-party verified; thereafter self-certifications (Does not apply to mixed income) HOME units – Minimum 6th year requirement based on the start date of the affordability period (if using self-certifications) LIHTC units – apply the 140% rule for over-income households at recertification CDOH units – re-designate another unit if the household is over income

Property Inspection Standards Units must be suitable for occupancy To determine this the State HFA must: Use local health, safety and building codes OR Use the Uniform Physical Condition Standards (UPCS) established by HUD in 24 CFR 5.706 HCV uses Federal HQS standards NOTE ~ UPCS does not supersede the local health, safety and building codes so owners must comply with both

Cannot Discriminate No program can deny a resident solely because they have a Housing Choice Voucher LIHTC properties with HOME funds are required to follow the Fair Housing requirements and laws including Section 504 of the Rehabilitation Act of 1973

REMEMBER… Always go with the most restrictive compliance requirement

QUESTIONS? What do you still need to know?

Contact Us www.chfainfo.com www.colorado.gov/dola Davina Ray Program Compliance Officer II CHFA 1981 Blake Street Denver, CO 80202 970.812.1144 direct DRay@chfainfo.com Kim Snetzinger Lead Asset Manager Colorado Division of Housing 1313 Sherman Street, Room 500 Denver, CO 80203 303-864-7826 Kim.Snetzinger@State.Co.Us Kimberley Dickey Housing Choice Voucher Contract Manager Colorado Division of Housing 1313 Sherman Street, Room 320 Denver, CO 80203 303-864-7841 Kimberley.Dickey@State.Co.Us

Thank you!