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CHFA eNews: Multifamily

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New LIHTC and CHFA Loan Owner Certifications Are Due in CHFA’s Insight System in January 2020!
Annual Submissions Deadline Reminder
2020 Social Security COLA Announced

November 22, 2019

New LIHTC and CHFA Loan Owner Certifications Are Due in CHFA’s Insight System in January 2020!

New annual owner certification forms can be accessed on CHFA's website. Be sure to use the new online versions of all forms and to fill out current contact information on each form. Outdated forms will not be accepted.

All submissions except the tenant certifications entered into WCMS must be uploaded directly in CHFA’s secure Insight system. For instructions on uploading, refer to the “Information” tab within Insight. The owner/agent must have an Insight username and password to use this new submission process. To register for an account, please complete an enrollment form, and send it to your Program Compliance Officer at least one week before the submission deadline.

Annual Submissions Deadline Reminder

2019/2020 annual submissions for the LIHTC and CHFA Multifamily Loan programs are due as follows.

For All LIHTC and CHFA Multifamily Loan Properties (excluding Project-based Section 8 and Mod Rehab)
Accurate Occupancy and Demographic information as of December 31, 2019, must be entered and submitted in WCMS.	Due January 15, 2020
For Properties with Multifamily Loans through CHFA
Owner Certification of Continuing Loan Compliance (Must be signed by Owner) *covers January 1 through December 31, 2019	Due January 15, 2020
Operating Budget for Properties with 542(c) Risk Share Loans only * 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 2019 *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 March 31, 2020, with a copy to CHFA by April 30, 2020
IRS Form 990 *Previously applicable if development has a CHFA loan with 501(c)(3) bonds. 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.	N/A
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) *covers January 1 through December 31, 2019	Due January 15, 2020
LIHTC Post Year-15 Owner Certification of Continuing Program Compliance (For properties that have completed the initial 15-year compliance period) (Must be signed by Owner) *January 1 through December 31, 2019	Due January 15, 2020
IRS Form 8703 for Calendar Year 2019 *Applicable to developments where CHFA served as a conduit issuer of Private Activity Bonds (PAB/tax-exempt financing).	Due to the IRS March 31, 2020, with a copy to CHFA by April 30, 2020
Monitoring Fees *Post Year-15 only ($25/LIHTC unit or a maximum of $2,500/year)	Due January 15, 2020
First-year IRS form 8609 (Part II completed in full), as filed with the IRS For all new LIHTC project owners that elected to claim first year credits for 2018 or earlier, please ensure all 8609 forms have been submitted in CHFA Insight. For projects without completed forms 8609, CHFA will monitor each building as a separate LIHTC project.	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

2020 Social Security COLA Announced

On October 10, 2019, the Social Security Administration announced there will be a 1.6 percent cost-of-living (COLA) increase for Social Security and Supplemental Security Income (SSI) benefits in 2020. For developments with LIHTC and CHFA loans, managers must factor in the COLA when estimating annual household income for certifications effective after October 10, 2019.

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 2020 income, the COLA must be reflected on all Tenant Income Certification (TIC) forms effective after October 10, 2019. If your resident has not yet received confirmation of their 2020 benefit, you can multiply the 2019 amount by 1.016 to estimate the 2020 benefit. The new amount will take effect with the January 2020 payment.

Please contact your Program Compliance Officer with any compliance-related questions.

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