Do you have a specific question about compliance in OHFA's Affordable Housing Tax Credits program? We've put together the answers to your most Frequently Asked Questions.
Affordable Housing Tax Credits
OHFA will not be monitoring for re-certifications due in 2009 for 100% tax credit sites. OHFA will be monitoring initial move-in certifications, re-certifications due in 2008 and prior, including the HERA mandated collection requirement beginning with 2010. HERA requires the following information from each household member: race, ethnicity, family composition, age, income, use of rental assistance, disability status, rental amount, and last four digits of social security number.
OHFA will also be monitoring to assure that student status and felony status is gathered.
You should count the amount including arrears for as long as the resident plans to receive it and then count the regular amount.
Remember you are counting income for the next 12 months.
If the income is not verifiable or guaranteed, do not count it. Owners should ask the appropriate questions regarding whether or not an unemployed household member is planning to seek employment.
If a household is accepted as low-income and subsequently becomes over-income, the owner should be prepared to prove due diligence. Your goal is to maintain the integrity of the tax credit files. The IRS will be notified if OHFA finds a pattern of over income households that became such shortly after move-in.
When a retroactive recertification is performed, the recertification was performed late. This finding is reported to the IRS if OHFA detects a pattern of late re-certifications. This will apply only to mixed income (tax credit / market) properties.
OHFA’s tax credit compliance procedure is to use current circumstances including any known anticipated income. An owner can always be more stringent than the State Agency and may use the higher income at their discretion.
Yes, according to HUD an unborn child may be included for the household income qualifying purpose, therefore, according to the IRS, it is also allowable that an unborn child may be included as an exception to a full time student household. (However, be aware if the baby does not survive, the exception no longer exists.)
The household's income is counted for the upcoming 12 months. Therefore, include in the recertification any income that this person is expected to earn after he/she turns 18.
No. However if at any time a new adult member joins a household the new member must complete an application and be income certified on the TIC. The income of the new member must then be added to the income disclosed on the existing household’s TIC. If the total income combined exceeds 140% of the income limit, the Available Unit Rule is invoked. For mixed-income properties, the next complete recertification is due when the existing household TIC expires.
If a calculation error was made in certifying a household and it is found that the household never income qualified for the unit, the unit is not a qualified tax credit unit until the next qualified household moves-in. Owners should consult with their tax attorney.
To avoid this situation, it is very important to carefully verify the income of a household prior to occupancy and have different sets of eyes view it. The IRS states non-compliance issues identified and corrected by the owner "prior to notification" of an upcoming compliance review or inspection by the state agency need not be reported.
Employment Verification, Zero Income Certification, Under $5,000 Asset Certification, Student Verification, Tenant Income Certification (unless RHS), and the Annual Owner Certification (signed by the owner due in Feb each year).
These forms can be found in the appendices in the OHFA Tax Credit Compliance Manual.
No. If the re-certification process is applicable, the household income can not be over 140% of the current income limit prior to the transfer. It is also important to remember that transfers are allowable ONLY if the buildings on the property are chosen as part of a multiple building project on the Form 8609 (box 8B).
The HUD demographic data that is required to be reported for each household member, due to the passage of HERA is: race, ethnicity, family composition, age, income, use of rental assistance, disability status, rental amount, and last four digits of social security number. OHFA will also be monitoring to assure that student status and felony status is gathered. Effective June 1, 2011, all 2010 information must be submitted to OHFA via Certification Online (COL).
No. OHFA accepts the RD TIC in place of the Tax Credit TIC, therefore a 100% tax credit site will NOT have to complete anything in addition to the RD TIC. This is only allowed if OHFA is assured that the RD TIC is signed no more than 5 days prior to move-in but on or before the actual move-in date.
Yes. The recertification dates differ when combining both the Tax Credit and the RD program. When a property is less than 100% Tax Credit, recertifications are not exempted. Therefore, an OHFA TIC must be completed.
If you are NOT tax credit qualified to live on-site as all of the other residents and the unit you are living in is titled a managers / exempt / non-revenue unit, the owner is no longer required to pay anything.
Chief Counsel Memo dated June 2,
2014 states whether or not an owner charges rents, utilities, or both
is not relevant in the treatment of units as
facilities that are reasonable required for the project. Therefore OHFA
will no longer monitor this as a requirement. This will be the owners’