CHFA eNews: Multifamily
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  • 2019 Social Security Cost of Living Adjustment (COLA)
  • IRS Form 8609 Reminder for New LIHTC Projects
  • Annual Submissions (with Updated Owner Certification Forms) are Coming Up!
October 29, 2018

2019 COLA Announced

On October 11, 2018, the Social Security Administration announced there will be a 2.8 percent Cost-of-Living Adjustment (COLA) for Social Security and Supplemental Security Income (SSI) benefits in 2019. For developments with LIHTC, CHFA loans, and RTC, managers must factor in the COLA when estimating annual household income for certifications effective after October 11, 2018.

If you have already prepared resident certifications due any time after the announcement, go back and review all estimates of Social Security income, apply the COLA, and recalculate household income. Since this is a known increase in 2019 income, the COLA must be reflected on all Tenant Income Certification (TIC) forms effective after October 11, 2018. If your resident has not yet received confirmation of their 2019 benefit, you can multiply the 2018 amount by 1.028 to estimate the 2019 benefit. The new amount will take effect with the January 2019 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 2017 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, 2018/2019 annual LIHTC, CHFA loan, and RTC submissions are due as follows.

Updated owner certification forms can be accessed on CHFA's website. Be sure to use the new online versions of all forms!

For all Properties (excluding Project-based Section 8 and Mod Rehab)
Occupancy and Demographic information as of December 31, 2018,
must be entered in WCMS.

Due January 15, 2019
For Properties with Loans through CHFA
Owner Certification of Continuing Loan Compliance (Must be signed by Owner)

*January 1 through December 31, 2018
Due January 15, 2019
Operating Budget for Properties with 542(c) Risk Share Loans
 

*CHFA no longer requires submission of annual budgets for CHFA Multifamily Loans that are not 542(c) Risk Share. For confirmation of your CHFA loan type, please contact your Program Compliance Officer.
Due 60 days before the development's fiscal year end
Audited Financial Statements Due 90 days after the development's fiscal year end
IRS Form 8703 for Calendar Year 2018

*Applicable to developments where CHFA served as the issuer of Private Activity Bonds and lender. (PAB/tax exempt bonds associated either with multifamily financing only or in conjunction with 4 percent LIHTC).
Due to the IRS April 15, 2019,
with a copy to CHFA by
April 30, 2019
IRS Form 990 for Calendar Year 2018

*Previously applicable if development has a CHFA loan with 501(c)(3) bonds
N/A - CHFA no longer requires submission of IRS Form 990 for CHFA multifamily loans.
Note: Owners must still file the Form 990 as required by the IRS.
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, 2018
Due January 15, 2019
LIHTC Post Year 15 Owner Certification of Continuing Program Compliance

(For properties that are past the initial 15-year compliance period)
(Must be signed by Owner)
*January 1 through December 31, 2018
Due January 15, 2019
IRS Form 8703 for Calendar Year 2018

*Applicable to developments where CHFA served as a conduit issuer of Private Activity Bonds (PAB/tax-exempt financing).
Due to the IRS April 15, 2019, with a copy to CHFA by April 30, 2019
Monitoring Fees

*Post Year-15 only ($25/unit or a maximum of $2,500/year)
Due January 15, 2019
First-year IRS form 8609 (Part II completed in full), as filed with the IRS Within 90 days of the end of the first year of the Credit Period
First-year Colorado LIHTC Allocation Certificate, as filed with the Colorado Department of Revenue (Colorado Affordable Housing Tax Credits Only) Within 90 days of the end of the first year of the Credit Period
For RTC properties
FDIC Owner Certification of Continuing Compliance
 
(Must be signed by Owner)
*January 1 through December 31, 2018
Due January 15, 2019
Compliance Report - Part A&B for the reporting period of January 1 through December 31, 2018 Due January 15, 2019
Monitoring Fees

*$50 per RTC unit
Due January 15, 2019

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