Second Quarter 2005 a quarterly publication of mississippi home corporation
VP Notes THE AOC REPORT:
Some Last Minute Questions
by: Deborah Heard Accountant.
Recently, on May 12, 2005, the Corporation Q: If my development was in carryover status
Summer is fast held a training session on the proper preparation during the past year, what forms, if any,
approaching, of the Annual Owner Certification (AOC) Report, should be completed for the submission of
which means it a report required by the IRS of all owners of the AOC Report?
is time for sun Housing Tax Credit (HTC) developments. A: If your development was in Carryover Status
b a t h i n g , During the training session, questions arose during the past year, then the only form you will
Robert D. Collier, swimming, concerning the forms that should be included in need to submit is the OCCPC form (pages 1 and
Multifamily Programs vacations, this report and the correct way to assemble the 2 only). Remember, you still must have the
barbeque parties, and submission. This article will attempt to share OCCPC notarized!
oh yeah, the second with you some of the more common questions:
issue of the Compliance Connection. Q: What information is included on the
Q: Who is responsible for completing and Development Physical Condition Report.
Since the publication of the last issue, signing these reports? A: The Development Physical Condition Report,
three compliance briefings have been A: The owner and/or his/her registered agent is which is still a relatively new addition to the AOC
conducted by staff, two on “HTC responsible for completing and signing the AOC Report, collects information on the physical
Fundamentals, ” held on March 10 and Report certifying that all information contained condition of damages sustained to the
June 9th and one on “Leasing a Tax therein is true and correct. The Registered development during the past year, particularly
Credit Unit” on April 7, 2005. As you Agent must be listed in the Partnership damages that take a unit/building out of service.
can see, we’re busy educating! Agreement. If there are none, then you would put “N/A”
In this issue, the second of a two where it calls for a description of the damages.
part series on Fair Housing compliance Q: Which of the forms in the AOC Report Remember, this form must also be notarized.
and enforcement is featured. See must be notarized?
inside for what not to do at your tax A: The Owner’s Certification of Continued Q: When does an owner submit a copy of the
credit site. Also, since our last Program Compliance (OCCPC) and 8609’s that were sent to the IRS?
publication, we’ve added a new feature Development Physical Condition (DPC) Reports A: The 8609 forms, issued to you from our
to the compliance website ~ the ability are the only two forms that must be notarized. Allocation Department, should be submitted the
to calculate the maximum allowable The Operating Statement should be notarized IF first year you are required to send in an AOC
income and rent limit for tax credit it is NOT generated by a Certified Public Report. In years 2-10, copies of the Schedule
households via our online calculator. To
utilize this feature, visit our website at continued on page 7
www.mshomecorp.com. It’s just
another way in which we’re trying to In this issue...
assist you with compliance. We hope State Audits, 8823s & What Really Matters to the IRS ... .................Page 2
you enjoy it!! Compliance Updates/Upcoming Events..................... ... .................Page 2
Remember the July 1st deadline to Crossword Puzzle.................... ... ............................... ... .................Page 3
Fair Housing Compliance and Enforcement - Part II . ... .................Page 4
submit your Annual Owner Certification Absent Family Members.......... ... ............................... ... .................Page 5
Report is right around the corner. Let’s HTC in the News...................... ... ............................... ... .................Page 5
get those Reports in on time!!! Straight from the IRS............... ... ............................... ... .................Page 6
Compliance Spot Light............ ... ............................... ... .................Page 6
The Days of Compliance ......... ... ............................... ... .................Page 7
Compliance Q & A ................... ... ............................... ... .................page 8
Ensuring Compliance through Education and Training
Mississippi Home Corporation, PO Box 23369, Jackson, Mississippi, 39225-3369, 601.718.4642, www.mshomecorp.com
Compliance State Audits, 8823s, & What
The Compliance Division welcomes the
Really Matters to the IRS?
March(HTC) the following Housing Tax
Credit developments to the
The following is a reprint of an article taken from TheoPRO’s
Weekly Online Compliance Advisor with the consent of Ruth
severe. Under the surface, though, the state
11-12, 2004 Quarterly Briefing may be commenting on and alerting the property
Mississippi housing-market: Theobald of TheoPROs Compliance & Consulting, Inc.
owner/manager to issues that could suggest the
Housing Tax Credit Fundamentals
by: Ruth Theobald, President deterioration of the housing.
Mississippi Home Corporation Sara Newsome, Vice-President If it were our property, we would simply take
Offices Park Apts, Ph II
Bay what the state reported and tend to correction. In
Bay St. Louis
Jackson, Miss - 64 units Question: this case, we would notify the household that the
We have recently been audited by the state and state has found their unit to be untidy and
15 - 17, 2004 - 2004 Mississippi
Kirby Road Apts II they have written our property up for the most nit- suggest ways that they can remedy the situation.
Robinsonville - 62 units
SAHMA Conference picky things. Housekeeping, for instance, over This should not be handled in a derogatory
Housing Tax Credit Compliance which we have no control. In another instance, manner, but with respect and courtesy.
Highland Park Apts the annual report we sent to them had a different Regarding the differences in facts reported
Jackson - 152 units
Speakers: Robert Collier/Karen rent indicated than the one that the file indicated. to the state versus what they find in the file, we
The rent was well below the maximum limit so would suggest the same approach. While it is
Georgetown Park Apts I
Chandler why would they write us up? Will they issue true that if the family’s rent is below the maximum
Biloxi,Starkville - 98 units 8823s on this? What will the IRS do if it is rent there is no violation as far as an 8823 “Low
reported? Income Housing Credit Agencies Report of Non-
25, 2004 - Quarterly Briefing
ChapelRidge of Richland Compliance” to the IRS, certainly the state has
Richland 184 units
Annual Owner- Certification (AOC) Answer: the right to call this discrepancy to our attention
Prep Class Physical property inspections, which have and to ask us to explain it. Again, simply
Fox Ridge Estates II
Mississippi Home Corporation been required for Section 42 since 2001, create providing them with proof of what the true rent is
Tunica - 32 units some interesting questions, such as the ones according to the lease and any other supporting
Jackson, Miss Apts II you have posed here. When is it truly non- documentation should suffice in remedying the
Shady Lane compliance and when is it not? situation.
Tunica - 96 units Each state sets the standard by which it In some cases, the state will not report all of
April audits for physical condition and they have the their findings to the IRS on Form 8823 unless it is
22, 2004 - Quarterly Briefing choice of using local building codes or Uniform in fact a violation of federal regulations. In other
Housing Tax Credit Compliance
for the Advanced
Physical Condition Standards (UPCS). In
addition to this they are supposed to audit for
cases, they may report this on an 8823, but if it
has been corrected, that result will also be stated
Guest Speaker: Liz Bramlet,
compliance with fair housing construction
standards and a myriad of other details.
on the report. Responding to their findings
whether or not they carry the import of an 8823
Under the surface of these requirements violation is simply a good practice and will
JUNE lies the purpose for which these physical enhance your relationship with the state.
Technical Assistance Available inspections were created in the first place: While we realize that it might feel absurd,
Upon Request keeping low income tax credit units in a condition you could always thank the state for bringing
May that provides decent, safe, and sanitary housing. these matters to your attention. Overall it will
JULY 2004 - Quarterly Briefing
5, We agree that on the surface, being written help you maintain your tax credit property to a
1 2005 AOC Certification
Annual Owner Report due (AOC) up for a family’s poor housekeeping seems higher standard! - Good luck!
Prep Class (Encore Presentation)
Mississippi Home Corporation
Offices Assistance Available
Things are getting easier
In the world of HTC where things seem to
Tip Us continually get more and more complicated, isn’t
it nice to find something designed to simply make
If you are currently a participant in the your life easier. MHC’s new Compliance
Mississippi HTC program and would like Calculator is such an item.
to share a compliance success tip, please Calculations of maximum allowable income and
let us know. We may feature your tip in rent limits will now be a breeze with MHC’s online
calculator. To add a little simplicity to your life,
an upcoming issue. Email tips to
visit the compliance section of our website at
1 2 3 4
14 15 16
1. Antique Car
3. Daffiney or Teri
7. Discharge resident 18
10. Out-of-date 19
14. Written on paper
17. 20% requirement
18. Student Exception (Abbr.)
20. Grant to stop verifications
1. Future income
2. Program benefit (2 words)
4. Unknown family member
5. Documentation Site
6. Verification method
9. Promise to State (abbr.)
12. AOC month
15. Never Qualified TC Unit
16. Not market, not low-income
19. Rent Mate (abbr.) 4.UNBORNCHILD 5. FILE 6.ORAL 9.LURA12.JULY 13.VERIFIED 15.EMPTY 16. STAFF 19.UA
14.DOCUMENTED 17. TIPS 18. TANF 20.WAIVER DOWN - 1.ANTICIPATED 2.TAXCREDIT
ACROSS - 1.ASSET 3.AUDITOR 7.EVICT 8.ALLOCATION 10.EXPIRED 11.ELIGIBLE
Fair Housing Compliance & Compliance
Enforcement - Part II Photo Poll
by: Robert D. Collier year.
These totals do not include discrimination
This is the second of a two-part series on based on disability and familial status (two of the If you could make one wish
compliance and enforcement of the Fair Housing most common types of discrimination), religion or for the tax credit program,
Act. In the last issue of the Compliance sex. Additionally, there is no comparable data for
Connection, Part I dealt with the type of housing persons with disabilities, yet this group what would it be?
covered under the Act, what is prohibited in the continuously files the highest number of
sale and rental of housing, protections for people complaints with HUD each year.
with disabilities and requirements for new
buildings with four or more units built after March Rental Market Discrimination To have the ability to
13, 1991. In this issue, I will focus on how fair The majority of complaints in the rental enter tenant data online
housing violations/noncompliance are reported market are filed against apartment owners and at the end of each month.
and enforced by state and federal agencies and managers for discriminating on the basis of race Francine Spann
the significant consequences that can result from (29% in 2003), disability (27% in 2003), family Site Manager
failure to comply. status (13% in 2003) and national origin. The Morrow Realty
The Fair HousingAct (theAct), which was first private fair housing movement reported 12,091
passed in 1968 shortly after the assassination of complaints of housing discrimination in the rental
Dr. Martin Luther King, prohibits discrimination market. The discrimination may take the form of
based on race, color, religion, sex, familial status Not to be tested at every
landlords denying that units are available,
and national origin. It is enforced administratively training.
refusing to make reasonable accommodation for
by the U.S. Department of Housing and Urban Scott Hendrix
a person with a disability, quoting higher rents or
Development (HUD). People who believe that security deposits, segregating African General Manager
they have been harmed by a violation of the Act Americans, Latinos, Asian Americans, or families Hughes Management
may file administrative complaints with HUD, and with children in one part of building or complex,
HUD conducts an impartial investigation of the restricting access to rental property amenities
claims. such as swimming pools or community rooms, or
The Act also authorizes federal lawsuits by initiating eviction proceedings against white To eliminate the
the U.S. Department of Justice (DOJ) and private tenants who have visitors who are African recertification process for
lawsuits that can be filed in federal or state courts American, Latino orAsianAmerican. the elderly.
by individuals. Many state and local fair housing Ruth Martin
enforcement agencies also have authority to Federal Enforcement Owner/ Manager
investigate violations and bring enforcement New Albany Elderly
actions. United States v. JDL Management Co. (N.D. Ill.)
Where violations of the law are established, In this case, the United States filed a complaint claiming that the
architect and developer engaged in a pattern or practice of
remedies under the Act may include the award of discrimination against persons with disabilities. The United States
compensatory damages to victims of settled this case with a consent decree. Pursuant to the decree,
$92,000 will be used to retrofit non-compliant units at Acorn Glen over
compliance with the Act. The MOU spells out the
discrimination, sometimes numbering in the a 10-year period. The remaining money will go towards retrofitting the steps that would be taken and the responsibilities
public use and common areas ofAcorn Glen.
hundreds of thousands of dollars, orders for of housing credit agencies when instances of fair
comprehensive corrective action, and awards of housing have been identified. Specifically, the
punitive damages to victims or civil penalties to In 2003, private fair housing organizations MOU states that the DOJ and HUD will provide
the government. In design and construction with membership in NFHA investigated more notice to the IRS and state housing finance
cases, remedies may also require retrofitting than 17,000 complaints of housing agencies of any enforcement actions brought
housing that has already been constructed to discrimination. Approximately 27 percent of under the Fair Housing Act involving tax credit
make it comply with the Act’s design and those complaints involved race discrimination.
construction requirements. There were 2,745 complaints filed with HUD’s
United States v. City of Johnstown, Pa. (W.D. Pa.)
Office of Fair Housing and Equal Opportunity. Of On June 16, 2004, the Court entered a consent order in United States
Fair Housing Discrimination – National those complaints, 32 percent involved race v. City of Johnstown (W.D. Pa.). The complaint alleged the City denied
the American Legion's application for a conditional use permit to
Trends discrimination in housing. Despite these operate a transitional housing facility for homeless veterans at an old
school building because the prospective occupants were disabled.
According to the National Fair Housing statistics, last year HUD records show the law There was strong neighborhood opposition to the proposed facility.
Alliance (NFHA), at least 3.7 million fair housing was violated in only four cases; ten when adding The consent order enjoins the city from discriminating on the
basis of disability in housing. In addition, the city will pay $82,500 in
violations still occur annually more than 35 years cases filed by the DOJ. damages to the American Legion and a $15,000 civil penalty to the
United States. Certain city employees will also receive training on the
after the passage of the Act. Recent research provisions of the Fair HousingAct.
has documented significant levels of Fair Housing Discrimination – Tax Credit The case was originally referred to the Division by the Department of
discrimination against African Americans, Housing
Latinos, Native Americans, Asian Americans and Since August 2000, the issue of fair housing,
particularly in tax credit developments, has development owners. The IRS, in turn, will notify
Pacific Islanders. A recent study commissioned
garnered increased attention nationally when the involved development owners that a finding of
by the NFHA found that race discrimination
IRS, DOJ, and HUD entered into a Memorandum discrimination could result in the loss of tax
against African Americans in the housing market
of Understanding (MOU) to promote enhanced credits.
occur more than an estimated 1.7 million times a continued on page 7
A temporarily absent family member (TAFM) three categories: separation, incarceration and
Absent Family generally tend to be spouses, adult students
living away from home, children temporarily
military duty. Below is a summary of how we have
answered the questions posed.
placed in foster care, adults away for active
Members military duty, and/or family members currently in a
hospital or rehabilitation center. When dealing
Whether an absent spouse is temporarily or
with a TAFM or making a decision as to the permanently absent may have a big impact on the
occupancy status of a TAFM, one should take household size and consequently, the applicable
by: Teri Nguyen
great care. One “slip-up” could cost you a lot in income limit. To avoid incorrect inclusions or
terms of noncompliance. The key to handling omissions have the applicant/resident answer
Knowing the members of your immediate
these cases is asking the right questions. Here, the “three-question quiz” and acquire an affidavit
family is generally a cinch. You could probably
we try to offer a “three-question quiz” to ask from the applicant/resident as to the
rattle off all the names of your family in the
households with a TAFM that should assist you in circumstances regarding the separation. In an
amount of time it takes to say “Bless you.”
making the best decision upfront: omission case, it is strongly suggested that
However, deciding who is part of your household
is another matter entirely. Often, in the tax credit management acquire secondhand
program, the terms family and household are 1) Is there a possibility that the absent family documentation, relating to the separation (i.e.
used interchangeably in error. The Housing Tax member may return to the household? documentation of domestic violence, restraining
Credit program is concerned about the members 2) If the absent family member was not order, legal separation agreement, letter from
of your household, but does not dictate who may obliged elsewhere (e.g., school, military attorney, etc.), to support the affidavit and the
or may not be a part of your household. duty, etc.) would she/he be at home? occupancy decision.
As we should all know by now, household 3) Can you reasonably determine a date of
size may be THE most important factor in return? Incarceration
determining tax credit eligibility. It determines the Unfortunately, people make mistakes - big
applicable income limit for the household, which If you have answered “yes” to any of these legal mistakes. However, those family members
is a pass or fail test. Thus, knowing who is questions, you should count the TAFM as part of are still a part of your family. The question is “are
actually part of the household is vital to the household. If you have answered “no” to all they a part of your household?” Should you add
compliance. One problem in making this these questions, then the family member should them? Unfortunately, the HUD Handbook does
determination is knowing which household be considered permanently absent, and thus, not specifically address this issue. Thus, in an
member is to be counted. The problem does not does not have to be counted. However, in the effort to make a decision based on your
rest with the obvious members (i.e. those latter scenario if the TAFM is a spouse, the head knowledge of the full situation, have the tenant
physically residing in the unit, although some of of the household may choose at his/her discretion answer the “three-question quiz.” Once given the
these individuals may be excludable) but with the to include or exclude the member. circumstances, use your best judgment. Again,
not so obvious members - those temporarily Over the past few years, MHC has received a acquiring secondhand verifications, if possible,
absent. series of questions regarding how to handle such as a news article noting the sentencing,
TAFMs. The questions posed generally fell into would only strengthen your case if the decision
continued on page 6
HTC in the News - Utility Allowance
by: Robert L. Lee maintenance costs,” added Zipperer.
So, what does the IRS need to do to fix this problem?
According to an article published in According to a coalition of multifamily organizations in a December
Affordable Housing Finance magazine 2004 proposal to the IRS, the IRS must implement policy changes
written by John Zipperer, efforts for new addressing problems found in two main, contributing factors: limited utility
utility cost adjustments by the IRS were set for allowance sources and the deregulation of utility services. The coalition
early 2005. With this, owners of low-income proposed that having more options, such as “allowing the use of a
housing tax credit (LIHTC) developments are hoping software model of utility service consumption, a state certified
the IRS will adopt policy changes that will allow utility professional engineer, the state housing finance agency, or, for existing
allowance estimates to be generated in a manner buildings, the actual utility data based on occupied units in the same
consistent or comparable to actual utility consumption. This policy property,” as well as eliminating deregulation whereby allowing utility
change, according to Zipperer, will allow for more accurate cash flow charges from multiple sources to be combine into one single bill, would
projections and therefore greater feasibility for affordable housing bring utility allowance estimates in line with the average utility cost.
developers. Finding a viable solution, one that works for all parties involved, may
Currently, IRS regulations require that owners of LIHTC not be an easy task. Proposals, such as the one recapped above, may
developments (specifically those who do not furnish utilities such as light, be just the answer for some and only half the answer for others. Just
water, gas, etc.) deduct estimated utility costs from the gross rent of think about the several other dozen proposals that may have been
household’s occupying low-income units in order to establish the net rent submitted for consideration. Will any of them work? Was there a “catch
they will charge these households. According to Zipperer, many owners one, catch all” proposal submitted? Will the problem with utility
feel they are overestimating utility cost due to out-dated methods for allowance estimates be put to rest once and for all? The answer to
retrieving utility information and estimates based on old properties with these questions is ~ no one currently knows. But one thing is certain;
less efficient construction and appliances. “Higher utility costs translate something must be done and soon. Who knows? A viable solution may
into actual reduced cash flows the net rents, leaving the owner with less be lying restlessly on the desks of IRS officials awaiting final approval!
money available to service the mortgage and cover operating and
from the Southwind Apartments
IRS... Durant, MS
Mississippi Home Corporation (MHC) recognizes Southwind
The Internal Revenue Service (IRS) published Apartments for its outstanding compliance monitoring practices.
Revenue Procedures 2005-30, which provides Southwind Apartments met the challenge of the Housing Tax
guidance regarding an extension of time for private
activity bond issuing authorities that fail to make a Credit (HTC) program (affordable units with restricted rents) as
timely carry forward election. The relief provided reflected in the latest compliance monitoring review performed by
under Rev. Proc. 2005-30 is in lieu of the letter ruling
procedure that is used to request an extension of time our agency. NO FINDINGS! WOW, what a way to GO! Keep up
under Internal Revenue Code § 301.9100-3. the good work!!
Representative William Jefferson of Louisiana Southwind Apartments offers 31 affordable housing units (24
(D) has proposed legislation in Congress that would
double the current low-income housing tax credit of one-bedrooms and 7 two-bedroom) spread throughout four
$1.85 per capita to $3.70 in FY 2006. Additionally, residential buildings. Southwind Apartments reserves 100% of its
Jefferson joined Representatives Jim Ramstad of
Minnesota (R) and Ben Cardin of Maryland (D), in units for families with income and rents at or below 60 percent of
introducing legislation they championed in the last the area median income.
Congress to reform the "exit tax" imposed on Southwind Apartments is currently owned by Southwind
developers of affordable housing. The proposed
legislation would waive the exit tax for owners who Housing L.P., Paul A. Carpenter, and is under the management of
sell their properties to buyers who agree to keep the Carpenter Management. Deana Gray, site manager of 7 years, is
properties affordable for no less than 30 years.
The IRS recently invited comments on Treasury responsible for the day-to-day operations of the development.
Decision 8801, the arbitrage restrictions on tax- According to Gray, “reading compliance manuals & updates and
exempt bonds issued by state and local governments attending as many MHC compliance training seminars as
and rules regarding the use of proceeds of state and
local bonds to acquire higher yielding investments possible” has helped me maintain compliance with the tax credit
under Section 148 of the Internal Revenue Code. program.
There are no changes being made to the regulations
at this time. This review is part of a continuing effort to Southwind Apartments has been in operation as a HTC
reduce paperwork and respondent burden as development since September of 1993.
required by the Paperwork Reduction Act of 1995.
Details are available in the Federal Register dated
May 13, 2005. Written comments will be accepted.
Developments featured have an overall favorable compliance status according to the latest monitoring visit performed by MHC's Compliance Division.
Absent Family Members continued from page 5
you made is ever questioned. dependents (i.e. a spouse or children), that overnight delivery, etc.). Third, check to see if a
person and his/her income must be counted. present household member has the power of
Military Duty When faced with this scenario, in addition to attorney to sign on behalf of the TAFM.
TAFMs of this type can be quite confusing, asking the “three-question quiz,” you must also Life is constantly changing as will
especially if the person is not related to the head consider any dependents left in your household. households. That is part of life. Make sure you
of household but to another household member. Now that you have made your decisions on are aware of these changes and fully document
What do I mean? Well, according to the HUD the occupancy status of TAFMs, I am sure you are the circumstances. If you do not address the
handbook 4350.3 Rev 1, in determining the going to ask “How do I document this and how do I questions now, your auditor may ask you later.
occupancy status of military personnel away on get their signatures if they are considered adult The best thing to do is to document and attempt to
active duty, you must count members that are the TAFMs?” First, we strongly suggest you have a settle the questions before they arise OR
head, co-head or spouse OR if they have left a note to the file regarding the circumstances of the WORSE before a certification error is made that
spouse or dependent children. Thus, if a person absence. Second, in acquiring the signatures of could jeopardize your tax credits.
away on active military duty has left any TAFMs, consider an alternative method of
obtaining information (via fax, certified mail,
AOC Report continued from page 1
A’s you receive each credit year along with the IRS
Form 8586 are the only forms required.
attendees asked some very important and
necessary questions about the proper completion compliance tip
Q: When a household transfers from one unit
of the AOC Report. The questions above are
important to the site manager, as well as the
of the quarter
to another unit in the building, what move-in owner and the management company. This
date should be listed on the rent roll report and report provides to the Corporation and the Internal
what is the next certification of the unit? Revenue Service (IRS) a “snapshot” of how the “At recertification, always re-verify
A: This is generally called an Intra-Building development has complied with the program rules income from a previously
Transfer. The move-in date that should be listed and regulations during the past year. Submitting documented source even if the
is the move-in date into the “new” unit. It should an incomplete and/or inaccurate report
not be the old move-in date or the development constitutes noncompliance reportable to the IRS. tenant notes income is no longer
move-in date. In a transfer such as this, generally, In saying that, please take note that information being received from that source.
the household would continue on its recertification given in the Report should be as accurate as Doing so will allow you to properly
schedule from the previous unit. In most cases possible. The AOC Report may be used as a calculate the portion of the rent due
this will be the anniversary date of the “old” unit’ s reference for an audit by the Corporation and/or from tenant.”*
move-in date. the IRS. Any discrepancy in the information
reviewed on-site and what was given in the AOC
For example, the Roberts moved into Unit #1 Report may lead to noncompliance. *Particularly beneficial when tenant
on June 13, 2002. On February 5, 2003, they Remember, your AOC Report is due by July 1 rent is subsidized by HUD or RHS.”
transferred to Unit # 2 (also in the same building). at 5:00 pm. We hope that by sharing these
The tenant’s move-out date for Unit #1 is February questions (and our answers), we can help you Sylvester Pomerlee
5, 2003. The move-in date for Unit #2 is also alleviate some common errors thus allowing you
February 5, 2003. The recertification, if done on to submit a deficiency-free report. Area Manager
time, would be June 13, 2003.
As you can see from these questions, the
Fair Housing continued from page 4
In an effort to more widely educate housing development are available for use by the general Mississippi, reports all violations of the Act on IRS
credit agencies, owners and other parties about public, as required by federal regulations. The Form 8823 (Report of Noncompliance) under line
the Act and federal accessibility guidelines, the regulation further provides that a unit is deemed item 10(d) which states “Owner failed to provide
IRS, DOJ and HUD, since the inception of the available for “use by the general public” if it is annual certifications or provided incomplete or
MOU, have spoken to various groups and at rented “in a manner consistent with housing policy inaccurate certifications.” In accordance with
various events regarding Fair Housing governing nondiscrimination, as evidenced by Section 42 of the IRC and the Income Tax
compliance, its relationship to tax credit rules or regulations of HUD.” Regulations, a report of noncompliance indicating
developments and the responsibilities of various In 2001, the AOC Report was amended to an owner of a low-income housing tax credit
parties. require owners to certify that no finding of development unlawfully discriminated against a
Under Internal Revenue Service Reg. 1.42-9 discrimination under the Act has occurred for the current or prospective tenant(s) could result in the
(general public use requirement), the specific tax development. This would include reporting loss of tax credits on this development.
regulation requiring compliance with the Act, an violations such as: For more information on Fair Housing
owner of a low-income housing tax credit ¨An adverse final decision by HUD - An adverse compliance, contact the Atlanta Regional Office of
development is required to annually certify to the final decision by a substantially equivalent state or FHEO at 1.800.440.8091. To report housing
housing credit agency (through its Annual Owner local fair housing agency, and/or discrimination, contact the Housing
Certification (AOC) Report, a report summarizing ¨An adverse judgment from a Federal court Discrimination Hotline at 1.800.669.9777.
an owner ’s compliance with program The Mississippi Home Corporation, the
requirements,) that all low-income units in the housing credit allocating agency for the State of
The Days of Compliance
...if this is a please press 1 to speak with Ann, please 2 to speak
rent related question please press with Bob, please press 3 to speak with Carol, press 4 to
for calling Shady Acres
6, if you’d like to leave a message please press speak with Dan, please press 5 to ...
Apartments, you have reached the automated
answering service. If you know the extension of 7, for more options please press 8, if you would
your party please dial it now, if not, please hold like to speak with a real live person please press
for a list of 9 for an extension list
Jackson, MS 38225-3369
PO Box 23369
Q: I have received a Social Security verification for a child in
one of my tax credit units. However, I have noticed that the
verification notes, “Jane Doe for Sarah Doe.” Sarah is the child. I Robert D. Collier
have no idea who Jane Doe is. Should I question the relationship of Vice President Multifamily Programs
this person to the child? Karen C. Georgetown
Assistant Vice President Compliance Monitoring
A: Yes, we strongly suggest you inquire and document the Daffiney House
relationship of Jane Doe. Although it is rare, it may be that Jane is simply a financial guardian of Teri Nguyen
Sarah’s benefits. However, leaving the question of who Jane is may give rise to other Compliance Officer
compliance questions, such as “Should Jane Doe be considered a household member? Should Deborah Heard
her income also be counted?” Thus, it’s always a good idea to document the situation to be Compliance Assistant
certain. Rob Stevens
Building Inspection Administrator
Q: Who should witness a mark of a tenant who is unable to sign his/her name? Robert L. “Derrick” Lee
A: The person witnessing the signature “mark” of a tenant must be a person other than Intern
management and/or the owner and of legal age and sound mind to do so.
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