February 20, 2024

OHFA’s Acquisition and Rehabilitation Training Is Now Available On-demand! 

OHFA has suspended offering live training webinars, but Owners/Management agents can take advantage of the recorded Acquisition/Rehabilitation Training, which is now on-demand. The course which is co-presented with Melanie Shapiro (Ohio Capital Corporation for Housing) focuses on the complexities of qualifying households, transfers, starting and maximizing credits, resyndications, and best practices. 

Continuing education credits will not be offered and attendance certificates will not be issued. However, watching this training at your leisure not only provides a good refresher but also benefits those who are new to the industry. The course manual is found here.

HUD’s List of HOTMA Income Exclusions

On February 1, 2024, HUD published a notice about income exclusions that are complementary to the HOTMA regulatory exclusions. The purpose of this notice is to update the list of income and asset sources required by federal law to be excluded from HUD programs.

HUD last published a notice that listed federally mandated exclusions from consideration of income on May 20, 2014. This new notice replaces the previously published version, adds four new exclusions, and removes exclusions that are now codified in HUD regulations. The new exclusion list may be found here: HUD's Income Exclusions.

Annual Owner Reporting Is Here!

Owners/Management agents are reminded 2023 Annual Owner Reports (AORs) are due March 1, 2024. Additional information on the submission process is found here: Multifamily Annual Owner Certification Requirements.

• Information on XML uploads is found here: XML Uploads Features Summary.
• Make sure the necessary staff members responsible for completing the AORs have access to DevCo. Here are instructions on how to get access to the database. If you need any assistance getting access, please contact the Compliance and DevCo Help Desk.

Also Owners/Management agents must complete the Annual Operating Survey (Excel file) for each project awarded tax credits between 2007–2020 (project numbers that begin with “07” and end through “20”) that has 10 or more units. Completed surveys must be submitted to PortfolioMailbox@ohiohome.org no later than Friday, March 1, 2024. Questions regarding the Annual Operating Survey may be directed to Kevin Clark at kclark@ohiohome.org.

Reformatted 8823 Audit Guide

The IRS reformatted the LIHTC Credit Agencies Audit Technique Guide (8823 Guide). It is posted to the IRS website with an effective date of January 24, 2024. The reformatted guide can be found here: IRS 8823 Guide.

The primary changes are instructions to HFAs on submitting 8823s, the new version of the 8823 and formatting. The reformatted guide does not contain guidance on the Average Income Test, HOTMA, or NSPIRE. The IRS is expected to issue a revised 8823 Guide later this year including those topics.  

OHFA will begin using the National Standards for the Physical Inspection of Real Estate (NSPIRE) protocols for all inspections occurring on or after October 1, 2024. NSPIRE standards apply to all projects regardless of the year that they were placed in service.

NSPIRE standards are different from Uniform Physical Condition Standards (UPCS) and different than code standards used by a building inspector to provide Certificates of Occupancy. Therefore, owners may receive more noncompliance deficiencies with NSPIRE than UPCS. It has been reported that some HFAs who are using NSPIRE inspection protocols have found substantial noncompliance with the habitability requirement that all interior and exterior outlets within 6’ of a water source must be ground-fault circuit interrupter (GFCI) protected. Owners/Management agents are encouraged to review all NSPIRE standards and conduct self-inspections to identify potential areas where their projects will not meet NSPIRE requirements.

NSPIRE imposes “affirmative habitability requirements” on all projects. A list of all the affirmative habitability requirements is included below.

Inspectable Area = Unit

• Hot and cold running water in both bathroom and kitchen, including adequate source of safe drinking water in the bathroom and kitchen Bathroom or sanitary facility that is in proper operating condition and usable in privacy that contains a sink, a bathtub or shower, and flushable toilet At least one battery-operated or hard-wired smoke detector 
• On each level of the unit
• Inside each bedroom 
• Within 21’ of any door to a bedroom measured along a path of travel
• Living room and kitchen area with a sink, cooking appliance, refrigerator, food preparation area, and food storage area
• Must meet carbon monoxide detection standards established through Federal Register notice
• Two working outlets or one working outlet and a permanent light within all habitable rooms 
• Outlets within 6’ of a water source must be GFCI protected
• Must contain a permanently installed heating source - Units may not contain unvented space heaters that burn gas, oil, or kerosene
• Must have a guardrail when there is an elevated working surface drop-off of 30" or more measured vertically
• Permanently mounted light fixture in the kitchen and each bathroom

Inspectable Area = Inside

• At least one battery-operated or hard-wired smoke detector on each level 
• Must meet carbon monoxide detection standards established through Federal Register notice 
• Outlets within 6’ of a water source must be GFCI protected
• Must have a guardrail when there is an elevated walking surface drop-off of 30” or more measured vertically 
• Permanently mounted light fixtures in any kitchens and each bathroom
• May not contain unvented space heaters that burn gas, oil, or kerosene 

Inspectable Area = Outside

• Outlets within 6’ of a water source must be GFCI protected 
• Must have a guardrail when there is an elevated walking surface drop-off of 30” or more measured vertically

NSPIRE Changes to Smoke Detectors - Start Planning Now!

There is a new federal mandate on smoke detectors that must be implemented by December 29, 2024. All smoke detectors will be required to be hardwired OR of the sealed 10-year battery type. If any smoke detectors need to be updated to be compliant with this new mandate NSPIRE Standard - Smoke Alarm, Owners/Management agents should consider a couple of things. There must be one smoke detector on each level of the building and on each level of the unit. Smoke detectors are required inside each bedroom and outside each sleeping area. If the bedrooms are confined to one hallway, only one smoke detector is required. 

Remember that carbon monoxide (CO) detectors are also required for both new and existing buildings {Refer to the code for reference, or for a full analysis of all CO-related Ohio Fire Code (OFC) provisions, see OFC §§ 915 and 1103.9, and review the Ohio Department of Commerce, Division of State Fire Marshal’s (SFM) Technical Bulletin 18-001 “Carbon Monoxide Detectors in New and Existing Buildings” (TB 18-001). Now would be an ideal time to update to the combination smoke/CO detectors to be in compliance with NSPIRE protocols. OHFA recommends Owners/Management agents keep a tracking log for each unit as to when compliant smoke/CO detectors are installed. 

Note: OHFA auditors will not pull down a functioning detector to see if it is of the sealed lithium battery type for audits occurring on or after December 29, 2024. For this reason, it may be beneficial for property Owners/Management agents to use detectors that are clearly marked that they are of the sealed lithium battery type. This will remove any questions or concerns the auditor may have.

Stay Informed! 

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