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Agency Approval for Providing Hurricane Emergency Housing Relief

Minnesota Housing is permitting all owners of Housing Tax Credit properties in the State of Minnesota to provide temporary emergency housing to displaced individuals affected by Hurricane Harvey and Hurricane Irma, in accordance with Revenue Procedures 2014-49 and 2014-50.
 

Declaration Areas

Both hurricanes resulted in Presidentially Declared Disasters with Individual Assistance. This means that households who become FEMA certified (must reside in the areas designated by the FEMA declaration and meet other FEMA criteria), and whose residence was in an area eligible for FEMA Individual Assistance and was damaged or destroyed can seek temporary housing from assisted properties and, with allocating agency approval, LIHTC properties.  

  • HarveyPresidentially Declared Disaster with Individual Assistance-DR 4332 - Certain areas in the State of Texas received a Major Disaster Declaration with Individual Assistance on August 25, 2017. The FEMA “incident period” began on August 23, 2017. Please see the FEMA website for specific areas identified in this declaration.  

  • Irma: Presidentially Declared Disaster with Individual Assistance-DR 4335, 4336 and 4337 - Certain areas in the U.S. Virgin Islands, Puerto Rico, Florida received a Major Disaster Declaration with Individual Assistance. Please see the FEMA website for specific areas identified in this declaration.  

      • Incident period: September 4, 2017 to October 1, 2017
      • Major Disaster Declaration declared on September 10, 2017
      • Incident period: September 4, 2017 to October 1, 2017
      • Major Disaster Declaration declared on September 10, 2017
      • Incident period: September 6, 2017 to October 1, 2017
      • Major Disaster Declaration declared on September 7, 2017

LIHTC Owners

What this means:

  • Revenue Procedure 2014-49: Provides temporary relief from certain requirements of Section 42 of the Internal Revenue Code for owners of LIHTC buildings after the declaration of a Major Disaster by the President.
  • Revenue Procedure 2014-50: Provides temporary relief from certain requirements of Section 142 of the Internal Revenue Code for owners of bond projects or bond/LIHTC projects.
  • Section 12 of Rev Proc 2014-49 and Section 6 of Rev Proc 2014-50 (“Emergency Housing Relief”): Allows the owners of LIHTC properties to provide temporary housing for displaced individuals for a period of 12 months with approval from the state housing credit agency.

How to Help

Tenant Eligibility: If owners choose to provide Emergency Housing Relief to Displaced Individuals that cannot establish eligibility for Section 42, they may disregard the income of the Displaced Individual’s household during the Temporary Housing Period and the unit retains the status it had prior to occupancy by the Displaced Individual (see section 13.04 of Revenue Procedure 2014-49 regarding treatment of units in the first year of the credit period).

No existing low-income household may be evicted or otherwise have his or her occupancy terminated solely to provide emergency housing relief for a Displaced Individual.

Rent: The rent charged cannot exceed the applicable Section 42 rent limit.

Disaster Certification Form: Owners must obtain a statement signed by the Displaced Individual under penalties of perjury containing the following information (use the Disaster Certification form):

  1. The name of the Displaced Individual (including the names of all household members);
  2. The address of the Displaced Individual’s principal residence at the time of the Major Disaster;
  3. The Displaced Individual’s social security number; and
  4. A statement that he or she was displaced from his or her principal residence as a result of a Major Disaster and that the residence was located in a city, county, or other local jurisdiction that is covered by the President’s declaration of a Major Disaster and that is designated as eligible for Individual Assistance by FEMA because of the Major Disaster.

Owners must retain a record of this approval in its property files as it may be subject to review by Internal Revenue Service.

Reporting: Owners must provide Minnesota Housing with the names of Displaced Individuals and the dates the Displaced Individuals covered by this relief began and ended occupancy. When entering move-in information in PORT, use the Notes section to record that the “tenant is receiving Emergency Housing Relief as a displaced resident from the Hurricane Harvey Major Disaster Declaration.”

End of Temporary Housing Period: This notice serves as Agency approval for LIHTC owners/managers of all tax credit properties Minnesota to provide Emergency Housing Relief to families displaced by the federally declared disaster. The Temporary Housing Period for Hurricane Harvey ends August 31, 2018 and for Hurricane Irma ends September 30, 2018.

If a Displaced Individual wishes to continue to occupy a low-income unit after the end of the Temporary Housing Period, the household must be initially qualified for Section 42 and all documentation rules apply. Owners must complete a full and complete initial Tenant Income Certification and Annual Student Certification. The effective date must be no later than the day following the end of the above-identified Temporary Housing Period.

Section 8 and Other HUD Multifamily Assisted Property Owners

What this Means:

  • HUD Handbook 4350.1 Chapter 38 (Multifamily Emergency/Disaster Guidance) provides information to HUD insured and or assisted properties affected by a Presidentially Declared Disaster including properties where displaced households may be seeking temporary housing. 

How to Help:

Tenant Eligibility: FEMA certified displaced residents can move in with family and friends occupying a HUD-assisted unit on a temporary basis provided the host household obtains the project owner’s approval and it does not create a health and safety problem.

If a displaced household moved into a HUD assisted unit but is not income eligible they are considered a guest and may be allowed to reside in the unit for a limited time (example 90 days) without interruption in subsidy. 

No existing low-income household may be evicted or otherwise have his or her occupancy terminated solely to provide emergency housing relief for a Displaced Individual.

Occupancy requirements do not apply for tenants who are afforded temporary housing unless rental assistance is being requested.

Rent/Lease: An owner can only voucher for housing assistance payments on units occupied by eligible Section 8 families. No housing assistance will be made to a FEMA certified resident that is not determined to be Section 8 eligible.  

Persons housed under the temporary housing measures should enter into a 30-day renewable lease, allowing the lease to terminate when their permanent housing unit becomes available or when FEMA no longer certifies the household’s eligibility.

The rent charged for temporary housing units must be set at the rents that were in effect immediately prior to the Presidentially Declared Disaster. If the rents are more than the FEMA approved rental assistance, the resident is responsible for the difference.  

FEMA certification: Displaced households must provide the owner with a copy of their FEMA certification to substantiate their eligibility for temporary housing. Owners must retain a record of this approval in its property files as it may be subject to review.

HOME Property Owners

All units combined with or assisted with HOME funds must follow the requirements of HUD CPD Notice 17-06, "Using Community Planning and Development (CPD) funds for Disaster Response and Recovery." Pages 8 and 9 of this notice identify the restrictions regarding CPD’s ability to issue regulatory waivers for certain provisions of the HOME regulations during a disaster.

Section 290 of the HOME Investment Partnership Act does not allow for suspension authorization for provisions related to affordability, income targeting, environmental standards and labor standards. The CPD Notice 17-06 and Section 290 restricts owners from housing persons who do not income qualify for a HOME unit even on a temporary basis.