WI-CARH Spring 2023
Message from Russell Kaney WI-CARH President
Springtime Rituals

March has arrived with its’ typical variations of weather. I have become dependent on my weather app this month, particularly the 10-day forecast. I have not put away the snow shovel just yet, the deicer is still a step away. My coat tree is loaded with light spring to heavy winter linings. Ready for all circumstances, I guess.

Being prepared for all-weather events is a lot like managing and developing affordable housing. You prepare and forecast as best you can and then execute your plan. Being nimble and ready to pivot, however, is a useful skill. Keeping you up-to-date and prepared is part of why WI-CARH exists. Whether it is highlighting topics and issues at our annual conference, updating our lease with competent legal assistance, or providing specific training on multi-family topics, we want to provide the best for you and your colleagues.

Spring Training Is Not Just for Baseball
For several years, WI-CARH has coordinated spring training sessions open to both members and non-members.  This spring is no exception. Take a look at our subsequent article in this newsletter on our April training sessions in Madison, Wisconsin. Our trainer, Amanda Lee Gross, received outstanding reviews for her knowledge and delivery in spring, 2022. If you have new staff or staff needing a refresher on key practices, consider sending them all to this training. Discounts are available for multiple attendees from the same firm. Also, this year, we structured the second day of training on Fair Housing. These sessions are always lively as questions arise from changing regulations, case law, and settlements.

We have come to realize that Rural Development will not be a source of training for your personnel in the future. Currently, they struggle to fill vacant positions and are hard-pressed to train their own staff. Take advantage of these sessions.   As always, let us know your thoughts on future training topics, issues, or support we can provide. Enjoy your spring!

Russell Kaney
Sign up for WI-CARH's Spring Training

WI-CARH Spring Training
Conquering Affordable and Fair Housing Compliance
April 5 & 6, 2023

Please join us for an engaging educational training on Conquering Affordable and Fair Housing Compliance. Wisconsin Council for Affordable & Rural Housing (WI-CARH) is proud to team up with US Housing Consultants for their expertise and excellent training services. 

You can attend both days of the training or just Day 2 on Fair Housing. We encourage you to attend both days but are offering some flexibility with busy schedules.  

Training will be on the following topics with additional topics to be included:

Day 1 
  • Common Household Eligibility Errors
  • Conquering Adjusted Income and Tenant Rent for Multi-Family Subsidized Housing Programs
  • Income and Assets in Today's Tech-Driven Economy
  • Navigating the Waiting List and Tenant Selection
Day 2
  • Fair Housing Essentials
  • Fair Housing - Focus on Assistance Animals

Each attendee who completes this training will receive a useful course manual with references and a certificate of completion.

Click here to see the full schedule

Day 1
8:30-9:00 - Registration 
9:00 - noon - Session
Noon - 1:00 pm - Lunch on Your Own
1:00 - 4:00 pm - Session

Day 2
8:30-9:00 am - Registration
9:00-12:00 noon - Session
Noon - 1:00 pm - Lunch on Your Own
1:00 - 2:00 pm - Session
The speaker will be Amanda Lee Gross
Ms. Gross has eighteen years of real-world knowledge and experience in all aspects of the affordable housing industry. She has learned the affordable housing industry from the ground up, starting as a site manager, and eventually rising to the position of Compliance Director for a multi-state, 5,000+ unit management company. Ms. Gross has leveraged that experience and became a nationally recognized expert trainer in Fair Housing, LIHTC, RD, HUD, and HOME. Over the last nine years, she has conducted hundreds of training nationwide and has provided consulting services to State Housing Finance Agencies, Public Housing Authorities, management companies, and developers.

Ms. Gross is a featured speaker at numerous industry events every year. She also provides custom-tailored training to private organizations that understand that highly-trained staff is more effective and better able to protect the assets and reputation of companies. She also works in a consulting capacity, advising clients in the development of their policies and procedures, optimizing project compliance performance, and addressing audit findings. Ms. Gross's areas of expertise focus on the following programs:
  • Fair Housing
  • Low-Income Housing Tax Credit (LIHTC) Program
  • USDA/RD Rental Housing Program
  • HUD Multifamily Housing Programs
  • HOME Investment Partnership Program
  • Tax-Exempt Bond Compliance


WI-CARH Members: $450 or 3 or more at $425
Non-Members:  $485 or 3 or more at $460
Fair Housing Day 2 Only:  $300

Each attendee will receive a Manual and a Certificate

Location of Spring Training and Hotel

The spring training will be held at the Madison Marriott West Hotel and Conference Center, 1313 John Q. Hammons Drive, Middleton, WI 53562. 

Use this link to Book your group rate for Wisconsin Council for Affordable and Rural Housing or call the Madison Marriott West at 608-831-2000 where the training session will take place. 
Be a Sponsor at WI-CARH's Spring Training
You are invited to join us as a Sponsor at the 2023 Spring Training. Please consider signing up today to be a Sponsor and help make this education and training opportunity affordable to all in the rural housing industry. 

Please click on Register as a Sponsor to complete the form.

Thank you to our 2023 Spring Training Gold Sponsors
2023 Midyear CARH Conference Highlights Inspections and Service Coordinators
The Council for Affordable and Rural Housing (CARH) held their mid-year conference in Florida on January 23-25, 2023. Board member Rob Dicke from WHPC attended on behalf of WI-CARH. As there were multiple sessions and breakouts, Rob put together information about the sessions he attended with bullet points highlighting the key takeaways. For details, please contact Rob at rdicke@whpccorp.org

RD Inspections-
  • New process for RD inspections to mirror REAC inspections in HUD
  • Scores will range from 1-10 (one being the best score)
  •  $1.6M contract
  • Tribal One is the vendor who won the RFP and will be implementing
  • Tribal One has contracted with BISCO to perform the inspections
  • BISCO has experience in REAC and HQS inspections
  • All inspectors must have 3+ years of prior experience
  • A pilot program is in place now (WHPC has its first one on 2/28/23)
Discussion about fentanyl in Apartments
  • Fentanyl is 50-100 times more powerful than morphine or heroin
  • There is a danger of accidental exposure to maintenance staff and cleaning crews
  • A lethal dose is equal to 5-7 grains of salt
  • Can be absorbed through the skin or eyes
  • Other drugs are being mixed with fentanyl
  • Assume any powdered drugs are fentanyl
  • Properties should consider training staff on Narcan and having onsite
Service Coordinators
  • Beginning in FY23 owners can include SC expenses in RD budgets
  • Salary should be added to Operating Expense line 19
  • Owners and managers should ensure their Management Plans are updated to include SC before adding the expense to a budget
  • The budget should include salary, benefits, and training
  • The average FT salary nationwide for an SC is $40,500 (speakers said this is low)
  •   HUD-funded SC can also serve RD properties- language in the American Homeownership Act states HUD-funded SCs are “allowed to serve the surrounding community”
  • RD has no formal requirements for SC training
  • CORES Certification (Certified Organization for Resident Engagement & Services)- is a 3rd party provider certification. Some states putting CORES requirements into QAP for LIHTC
  • RD has not prohibited remote SCs that can either be serving a scattered portfolio or be completely remote
  • Expanding Service Coordinators Act- would provide funds to improve capacity and retention of service coordinator workforce- pending in House
  • SC expenses will raise rents on non-RA units- this should be considered before adding SC
  • RD will allow a hybrid Manager/SC to increase PT to FT- this may cause a conflict of interest for staff as these roles can often have different perspectives or priorities
  • AASC Online is software for SCs- for tracking interactions, services provided, outcomes, and automates the HUS Standards for Success Report
Breaking News Session
  • Not a lot is getting done this congress because of the split House/Senate
  • House may be looking for cuts to housing programs as part of debt ceiling talks
  • HUD Bill for PBRA funding is pushing for budget-based rent increases for Mark to Market Properties
  • Further discussion taking place on decoupling 515 and 521
Energy Tax Credits
  • Investment Tax Credit (ITC) being increased under the Inflation Reduction Act
  • Now covers both solar and battery storage
  • 30% credit as long as prevailing wages are paid- this does not mean Davis Bacon but the regulations are not complete
  • 10% add-on to ITC for 100% domestic content (this may be just the steel and not panels?)
  • 10% add-on for Energy Communities (former coal areas) and brownfield sites
  • 10% add-on for low-income areas
  • 20% add-on for low-income buildings- this is not stacked with low-income area
  •  Low-income bonuses require the solar to benefit the tenants- this is also not defined, does it need to be 100% benefit? Can it benefit the tenants by lowering the rent with owner-paid utilities?
  • There is no basis reduction under LIHTC for ITC
  • There is a reduction of ITC for a percentage of property financed by tax-exempt bonds
  • ITC credits can be sold to unrelated 3rd party
  • ITC credits can be sold up to your tax return date
  •  ITC becomes a direct grant to non-profits

Multifamily Housing
March 3, 2023

Multifamily Housing Announces the Availability 
of Section 515 Rural Rental Housing Subsequent Loans. 
Register for Stakeholder Information Session on March 23, 2023

In accordance with 7 CFR 3560.73 and Handbook-1-3560 Chapter 10, the Agency is accepting applications for Section 515 Rural Rental Housing subsequent loans. The Agency may make a subsequent loan to a borrower to complete, improve, repair, or make modifications to multifamily housing initially financed by the Agency or for preservation purposes. Although the Agency recognizes the need to add to the rural affordable housing stock through new construction, subsequent loans are only available for projects that currently have a Section 515 loan or loan commitment.

The Agency has received $70 million of Section 515 subsequent loan funding for Fiscal Year 2023 (FY2023). To effectively manage the FY2023 Section 515 appropriation, funding will be available through two application processes:
  1. Applications received by April 30, 2023, will be reviewed for funding, with a priority placed on funding projects with the identified loan purposes described in this announcement. Applications received after April 30, 2023, outside of the NOSA will be reviewed if funding remains available.
  2. The Agency will announce additional Section 515 subsequent loan funding in a Notice of Solicitation of Applications (NOSA) that will be published later this year.

Priority Loan Purposes

For applications received by April 30, 2023, priority consideration will be given to applications that address at least one of the following needs:
  • Repairs or modifications to address health and safety findings or violations previously identified and documented by an Agency or Agency-authorized inspection or a code-enforcement agency, including the Agency’s recently launched Multifamily Housing Physical Inspection Pilot Program (MPIPP).
  • Repairs or modifications to comply with accessibility requirements previously identified and documented by the Agency or an Agency-authorized inspector.
  • Loan requests associated with prepayment applications already in process and/or approved by the Agency to support the preservation of the Section 515 portfolio under the requirements of 7 CFR 3560 Subpart N—Housing Preservation.
  • Transfer applications currently in process and/or approved by the Agency that requires additional funding to address financing gaps and/or meet Agency underwriting requirements.
  • Loan requests to address financing gaps in previously approved or closed preservation transactions.

Loan Terms and Requirements

Rate, Amortization Period, and Term

Subsequent loans have an effective interest rate of 1%. The amortization period is the lesser of 50 years or the remaining economic life of the housing. The loan term is the lesser of 30 years or the remaining economic life of the housing.

Borrower Equity Contribution

Loan applicants who receive a subsequent loan, except for nonprofit organizations, consumer cooperatives, or state or local public agencies who will not be receiving tax credits, must make an equity contribution from their own resources in accordance with 7 CFR 3560.63. Loan applicants who will receive benefits from the low-income housing tax credit program must make an equity contribution in the amount of five percent of the Agency loan. Loan applicants who will not receive benefits from the low-income housing tax credit program and are not nonprofit organizations, consumer cooperatives, or state or local public agencies must make an equity contribution in the amount of three percent of the Agency loan.

Restrictive-Use Provisions

Subsequent loans are subject to restrictive-use provisions as outlined in §3560.662(a) and borrowers must execute a new restrictive-use covenant in accordance with §3560.72(a)(2). A new 20-year restrictive-use covenant will be required for projects receiving Section 515 subsequent loans unless additional restrictions are required due to other funding sources.

Initial Application Requirements

The agency requires complete submission of the following items as part of the initial application response due by April 30, 2023. Applicants who do not provide all the required items by April 30, 2023, will not be considered in the initial round of application reviews. If applicants are submitting funding requests for multiple projects, a separate application package must be submitted for each project.
  • Form SF 424 A, Application for Federal Assistance
  • Form RD 1944-37, Previous Participation Certification
  • The method of financing construction
  • Drawings, specifications, and a contract document that meets the requirements of Handbook-1-3560 Paragraph 9.10 B
  • The estimated total development cost, the cost per unit and the estimated loan amount (Form RD 1924-13, Estimate and Certificate of Actual Cost)
  • Scope of work
  • Signed statement regarding cost overruns
  • Information on architectural, engineering, and legal services and proposed contractor
  • Forms RD 3560-30, Certification of No Identity of Interest (IOI) and RD 3560-31, Identity of Interest Disclosure/Qualification Certificate
  • Detailed operating budget (Form RD 3560-7, Multiple Family Housing Project Budget/Utility Allowance) that includes proposed subsequent loan
  • Demonstrated ability of cooperative to self-manage, if applicable
  • Updated financial statements
  • Form RD 1910-11, Applicant Certification Federal Collection Policies for Consumer or Commercial Debts

 Application Submission Process

Applications must be submitted to the appropriate Processing and Report Review Branch in the Multifamily Housing Production and Preservation Division. Applications must be submitted based on the state in which the project is located.

Processing and Report Review Branch 1 covers the following states in the Northeast and Midwest: CT, DE, IA, IL, IN, KS, MA, MD, ME, MI, MN, MO, ND, NE, NH, NJ, NY, OH, PA, RI, SD, VA, VT, WI, WV. Applications for these states must be submitted to: MFHprocessing1@usda.gov

Processing and Report Review Branch 2 covers the following states in the South and West: AK, AL, AR, AZ, CA, CO, FL, GA, HI, ID, KY, LA, MS, MT, NC, NM, NV, OK, OR, PR, SC, TN, TX, UT, VI, WA, WY. Applications for these states must be submitted to: MFHprocessing2@usda.gov

All applications submitted prior to April 30, 2023, will be considered in the first round of application reviews. Applicants who previously submitted 515 subsequent loan applications in FY2022 or FY2023 may contact the agency to determine if there are missing or additional items to be submitted. For applications previously submitted in FY2022 or FY2023 where the Agency has already provided a list of missing or additional items required, the applicant must provide those items by the date provided in the letter. Any 515 subsequent loan applications submitted prior to FY2022 (October 1, 2021) must be resubmitted to the Agency.

Application Review and Notification

The agency plans to complete an initial review of applications submitted by April 30, 2023, within 60 days. Following agency review, additional application items or clarifications may be required based on the applicant’s funding request. The Agency will notify applicants by letter if additional items or clarifications are required for the application, along with the date by which those items must be submitted.

Contact Information

For additional information about application requirements for the Section 515 subsequent loan program, borrowers may send an email to the assigned Processing and Report Review Branch that covers the state in which their property is located.

Stakeholder Information Session

The USDA RD MFH Production and Preservation Division will discuss the Section 515 Subsequent Loan program during a Webinar on Thursday, March 23, 2023, from 2:00-3:00 PM ET. Those interested in learning more should pre-register. A confirmation notice will be emailed to registrants.

For program information...
“In the midst of every crisis, lies great opportunity.” – Albert Einstein.

Sometimes, even highly successful and experienced operators can run into difficulties with a particular type of property. When that happens, it is best to step back, realize your limitations and seek the help of other organizations better situated for the task at hand. Such was the case recently with Wisconsin-based nonprofit Impact Seven and its two HUD 811 group-home properties. In mid-2022, the service providers for the tenants in these small, rural properties failed to renew and Impact Seven has been unable to locate a replacement. Lacking a service provider, all the tenants had no choice other than to vacate the units they called home. Vacant units and displaced tenants are a problem for any organization, but for a mission-oriented nonprofit, it is doubly so.

In discussions with HUD staff, Impact Seven determined that the best solution is to donate the properties to one or more fellow organizations that are better placed to return them to productivity.

The transfer of ownership would be through the HUD Modified TPA (Transfer of Physical Assets) process, under which the existing corporate entity stays intact. The reserve, operating, and escrow accounts would transfer to the new ownership team, whose staff would replace our directors. We would work together to execute the necessary new bylaws and property management agreements, etc. This process is generally known in the industry as a “friendly takeover.”

Both properties are in full regulatory compliance (other than the vacancy issue discussed above), have a history of very high occupancy, resulting in a healthy cash flow that has allowed for maintaining the assets in as-new condition and were developed under the HUD Capital Advance program, where the only debt is in the form of a mortgage that is forgivable at the end of the 40-year compliance period. Wanda Frogg Villa is a six-unit in Burlington placed in service in 2008 with a most recent REAC score of 100 and a replacement reserve balance of $39,000. Clarke Damon Villa is a four-unit in River Falls placed in service in 2004 with a most recent REAC score of 99 and a replacement reserve balance of $21,000.

The key to making this a win for your organization is that you must have access to, or self-provide, the tenant services necessary to fill the units. If that describes your team, then Impact Seven is anxious to discuss this win-win opportunity with you. Note, if desired, Impact Seven will continue to provide property management. Please email or call Jim Landreth, Director of Asset Management, at jim.landreth@impactseven.org (715) 419-4674.
The WI-CARH Lease is available and approved for use in any Rural
Development supervised property. Using this lease for your property will ensure that you are in compliance with Wisconsin law and RD regulations while saving you the expense of hiring a lawyer to do the same thing. Just like last year, it is available in three formats:

  • FHA Software Generated Lease - WI-CARH has teamed up with Simply Computer Software to give FHA Software users the access and ability to generate their WI-CARH Residential Lease and Amendments forms within their FHA Software program. Users of this program can generate the lease through the RD 3560-8 Tenant Certification - PRINT options window. All of the applicable project, unit and tenant information will automatically be inserted.

  • Stand-alone WI-CARH Lease Generation Program - A link will be sent to you from Simply Computer Software that will allow you to download and install the WI-CARH Lease Generation Program which includes pre-entered property listing information you provided. To produce a lease, just open the program, select the property, enter pertinent tenant information, and print.

  • Paper Lease - A package of 10 leases and 10 amendments will be shipped to you which you will use to handwrite all pertinent tenant information.

To purchase the lease, complete the lease order form and mail it in with your payment to the WI-CARH Office at: P.O. Box 258098, Madison, WI 53725.
Renew your Membership today! Not a current member?  Now is a great time to join!

If you are a current member, invoices have been sent and are due March 15, 2023.

WI-CARH is dedicated to assisting you in the rural housing industry.  
Through your membership, you help support an organization made up of your peers and housing professionals both within the State of Wisconsin and nationally. WI-CARH members include builders, developers, lenders,   
management companies, owners, non-profit agencies, and vendors. You also have the opportunity to meet industry leaders and to align yourself with a diverse group of businesspeople involved in every sector of the affordable housing community.

When you become a member of WI-CARH, you gain access to important tools, information, and services. The monetary benefits range from discounts on conferences, training, and leases to savings through the CARH Preferred Buyers Club program. 

More information on the benefits of membership can be found on our website. If you are not a member, simply complete form and mail it along with a check to WI-CARH at P.O. Box 258098, Madison, WI 53725.  
Wisconsin Council for Affordable and Rural Housing has funding to help you in your extracurricular activities, and scholarships to continue your education beyond high school.

Download the attached flyer and post it in your lobby or breakrooms. On the flyer, there is a QR code that can be scanned to tell us more about what you would like to do and how we can help you achieve your goal.

Russel D. Kaney, President - ruskaney@msn.com
Rob Dicke, Vice President - rdicke@whpccorp.org

Brittany Leonard, Treasurer - bleonard@hawkinsashcpas.com

Russ Endres, Secretary - rendres@wimci.com
Donna Braun, Director - donna@dodgehousing.org

Rebecca Giroux, Director - Rebecca.giroux@wheda.com

Denise Loveland, Director - dloveland@horizon-management.net
Duane Tinsley, Director - Duane@SimplyComputer.net
Mark Your Calendars - 2023 Dates
April 5&6, 2023 - WI-CARH's Spring Training - Conquering Affordable and Fair Housing Compliance be held at the Marriott Hotel in Middleton, Wisconsin.

May 23, 2023 WI-CARH Board of Directors Meeting

September 12, 2023 - WI-CARH Board of Directors Meeting

November 8, 2023- WI-CARH's 24th Annual Conference will be held at the Wilderness in Wisconsin Dells, Wisconsin.

November 9, 2023 - WI-CARH's Board of Directors Meeting at the Wilderness in Wisconsin Dells
Do you have news to share?
We would love to hear about it!
Please submit your news to info@wicarh.org