EHS Notifications, Manager's Unit Rent and other Compliance Updates

 

 

 

EHS Notifications, Manager's Unit Rent and
other Compliance Updates

 

Annual Owner Reporting

The annual owner reporting deadline was March 1. The program compliance analysts have sent letters to all properties for corrections or completed submissions. As part of the improvements for the 2016 AOR letters, each issue is labeled with a severity label to better clarify why the issue is listed in the letter. The labels are Compliance Issue, Potential Compliance Issue, and Data Clarification. Contact your analyst if you have questions on issues listed in your annual reporting review letter. If you need assistance working on an item for annual reporting in DevCo, please use the DevCo Help Desk .

 

Exigent Health and Safety Notification

Given that EHS findings are a safety concern and safe and secure housing for residents is important, OHFA has changed our policy on when EHS repairs must be completed and verified. Previously, the policy allowed owners and property managers to repair the deficiency in 24 hours and provide verification that the repair was completed within 72 hours.

 

Now, owners and property managers will have 24 hours to repair the EHS finding and send proof (e.g. signed work order) that the repair has occurred after the signed EHS form is received. There may be mitigating circumstances in which a repair cannot be completed within 24 hours (e.g. broken window). In these circumstances, the owner or property manager must provide proof that the repair process has begun (e.g. invoice, estimate) and written explanation as to the action plan to complete the repair. OHFA will review any exceptions on a case-by-case basis.

 

Charging Rent on Manager's Units

The IRS clarified that charging rents is acceptable so long as the owner has proven to the Housing Finance Agency the unit is 'reasonably required' for the project. In 2014, the IRS clarified charging rent through a Program Manager Technical assistance (PMTA 2014-22) PMTA-2014-22 memo:

 

"Charging resident managers or maintenance personnel rents, utilities, or both for units in a qualified low-income building does not make the units residential rental units and not facilities reasonably required for the project under §1.103-8(b)(4)(iii)."

 

PMTA 2014-22 also says "whether or not the owner of the project charges rents, utilities, or both for the units are not relevant in the treatment of the units as facilities that are reasonably required for the project. As such, the fact that the owner of a qualified low-income building charges rents, utilities, or both for units for resident managers or maintenance personnel is not relevant in the treatment of such units as facilities reasonably required for the project."

 

 

In the past, OHFA has not allowed an owner to charge rent for a manager ormaintenance unit. In order to align our policy with that of IRS guidance, effective immediately, OHFA will now allow owners to charge rent so long as the unit is 'reasonably required' for the project.

 

Questions regarding this message may be directed to Betsy Krieger, Director of Program Compliance, bkrieger@ohiohome.org.   

 

STAY CONNECTED:

Like us on Facebook

Follow us on Twitter

View on Instagram