CHFA eNews: Multifamily
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  • 2018 COLA
  • IRS Form 8609 Reminder for New LIHTC Projects
  • Annual Submissions are Due!
October 20, 2017

2018 COLA Announced

On October 13, 2017, the Social Security Administration announced there will be a 2.0 percent cost-of-living (COLA) increase for Social Security and Supplemental Security Income (SSI) benefits in 2018. For developments with LIHTC, and/or loans through CHFA, or RTC, managers must factor in the adjustment when estimating resident income for 2018.

If you have already prepared resident certifications due any time after the announcement, review all estimates of Social Security income and apply the COLA. Since this is a known increase in 2018 income, it must be reflected on all Tenant Income Certification (TIC) forms effective after 10.13.2017. If your resident has not yet received confirmation of their 2018 benefit, you can multiply the 2017 amount by 1.02 to estimate the 2018 benefit. The new amount will take effect with the January 2018 payment.

Contact your Program Compliance Officer with any compliance-related questions.

IRS Form 8609 Reminder for New LIHTC Projects

Copies of IRS Form 8609 and Schedule A for each building (Part II completed, signed by the owner, and filed with the IRS) for the first year of the LIHTC Credit Period are due to CHFA within 90 days of the first filing. For all LIHTC project owners that elected to claim first year credits for 2016 or earlier, please ensure all forms have been submitted to the CHFA Program Compliance Officer. For projects without completed Forms 8609, CHFA will monitor each building as a separate LIHTC project.

Annual Submissions are Due

As a reminder, 2017/2018 annual LIHTC, CHFA loan, and RTC submissions are due as follows.

Owner certification forms can be accessed on CHFA's website.

Note that the Owner Certification for CHFA Multifamily Loans has been revised for projects with tax exempt financing. Be sure to use the new form.

For all Properties (excluding Project-based Section 8 and Mod Rehab)
Occupancy and Demographic information as of December 31, 2017,
must be entered in WCMS.

Due January 15, 2018
For Properties with Loans through CHFA
Owner Certification of Continuing Loan Compliance
(Must be signed by Owner)
*January 1 through December 31, 2017
Due January 15, 2018
Operating Budget Due 60 days prior to the beginning of next fiscal year
Audited Financial Statements Due 90 days after the fiscal year end
IRS Form 8703 for Calendar Year 2017
*Applicable if development has a CHFA loan with PAB/tax
  exempt bond financing
Due to the IRS April 15, 2018,
with a copy to CHFA by
April 30, 2018
IRS Form 990 for Calendar Year 2017
*Applicable if development has a CHFA loan with 501(c)(3) bonds
Due June 15, 2018
For Properties with Low Income Housing Tax Credits
LIHTC Owner Certification of Continuing Program Compliance
(For properties within the initial 15-year compliance period)
(Must be signed by Owner)

*January 1 through December 31, 2017
Due January 15, 2018
LIHTC Post Year 15 Owner Certification of Continuing Program Compliance, if applicable
(For properties that are past the initial 15-year compliance period)
(Must be signed by Owner)
*January 1 through December 31, 2017
Due January 15, 2018
Monitoring Fees
*Post Year-15 only ($25/unit or a maximum of $2,500/year)
Due January 15, 2018
For RTC properties
FDIC Owner Certification of Continuing Compliance
(Must be signed by Owner)
*January 1 through December 31, 2017
Due January 15, 2018
Compliance Report - Part A&B for the reporting period of January 1 through December 31, 2017 Due January 15, 2018
Annual monitoring fee of $50 per RTC unit Due January 15, 2018

Please note that most tax exempt organizations are required to file an annual Form 990 “Return of Organization Exempt from Income Tax” with the IRS. If an organization fails to file an annual or submit a notice as required for three consecutive years, it will automatically lose its tax exempt status. You may access online the IRS instructions and the Form 990 at www.irs.gov in the Forms & Publications section..



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