Memorial Day weekend is a fun time for most of us as we take out the grill for a good ole barbecue and splash around the pool while enjoying some beer and wine with our families and friends. Others may chill at the beach or go camping during this awesome three day weekend! Regardless of how we choose to spend this weekend, I’m positive that our fallen armed forces members want us to enjoy life. Before you head out to celebrate time with your loved ones, please also take time to honor and remember those who died in America’s wars.
Memorial Day was originally called Decoration Day, which stemmed from the early tradition of decorating graves with flowers, wreaths and flags. We encourage all of our readers to visit a National Cemetery or a State Veterans Cemetery to keep the tradition of remembering the valiant men and women who have died serving our country. Just click on the following link to find a location near you. http://www.cem.va.gov/cems/listcem.asp
Remember those who served . . .
Put flags or flowers on the graves of men and women who served in wars.
Fly the U.S. flag at half-staff until noon.
Visit monuments dedicated to soldiers, sailors or marines.
Participate in a National Moment of Remembrance at 3p.m.
March in a parade.
“We do not know one promise these men [and women] made, one pledge they gave, one word they spoke; but we do know they summed up and perfected, by one supreme act, the highest virtues of men [and women] and citizens. For love of country they accepted death, and thus resolved all doubts, and made immortal their patriotism and their virtue.”
-James A. Garfield, May 30, 1868 Arlington National Cemetery
All of us at First Housing wish you and your family a safe and joyful Memorial Day! Share your Memorial Day Photos with us on our Facebook page!
Once upon a time, there lived a new property manager at a nearby village developed quite some time ago as a Housing Credit property. Over the years many personnel changes occurred at this village as well as some uncontrollable incidences such as theft and fire. Then, one day the state showed up requesting to review 20% of the village’s tenant files. “No problem,” says the new property manager, “I got this!” All seemed well until the State suddenly requested first year records for a 15 year old file! The new property manager searched and searched but to no avail; she came up empty.
The new property manager had no idea that first year records must be kept for six years beyond the due date for filling the Federal Income Tax Return for the last year of the compliance period. Since the compliance period is 15 years, first year records must be kept and maintained for a total of 21 years. Yikes, that’s a long time!
Additionally, all other records must be kept at least 6 years beyond the due date for filing Federal Income Taxes for that year.
All resident files and records should be maintained in a secure and safe manner. It is recommended that in addition to hard copies being maintained onsite, electronic copies also should be maintained off-site. This will avoid the loss of records due to uncontrollable events at the property.
Not having first year records for Housing Credit files could cause tax credits to be recaptured!
It is important to refer to the state agency’s guidelines for record retention procedures for other types of programs such as HOME, MMRB, or SAIL.
Any developments utilizing more than one program type shall follow the record retention procedures pertaining to each program. For example, if a property has both Housing Credits and HOME, be sure to know the record retention policy for both programs and follow the procedures accordingly to ensure that the requirements of both programs are being met.
As the day continued on, the new property manager at the old village received excellent news from the corporate office. A copy of the 15 year old first year record was eventually found, since they already knew the importance of keeping an electronic record of files offsite, and everyone lived happily ever after.
HUD released the 2014 Income Limits and Rent Limits on 12/18/2013 for Multifamily Rental Programs – Except HOME and SHIP. As a reminder, these limits must be implemented by 1/31/2014. Continue checking with your state agency for additional updates.
The 2008 Housing and Economic Recovery Act (HERA) amendments to Section 142(d)(2)(B) of the Internal Revenue Code included the following hold harmless provision, as stated by Janet Peterson, Florida Housing Finance Corporation.
A general rule that applies to all developments regardless of the location or when the development was first placed in service. The general hold harmless provision is that the income limits for a project for any year will never be lower than the income limits used by the project in the preceding year and establishes what, effectively, is a moving floor for a project’s income limits. This change to the tax law formalized HUDs longstanding policy of setting income limits at the higher of normal income limit calculations or at the previous year’s income limits but applies it on a project basis.
IR-2013-79, Sept. 30, 2013
WASHINGTON — The Internal Revenue Service announced today that it is waiving certain limitations for projects financed with low-income housing tax credits or exempt facility bonds so that owners and operators of these facilities anywhere in the nation can provide housing to victims of severe storms, flooding, landslides and mudslides in Colorado that began Sept. 11.
Because of the widespread devastation to housing caused by storms and flooding, the IRS will temporarily suspend certain limitations for qualified low-income housing projects that house people displaced by the storms and flooding. The action will expand the availability of housing for disaster victims and their families. Further details are available in Notice 2013-63 and Notice 2013-64, posted today on IRS.gov.