Frequently Asked Questions

What is the length of time for the temporary suspension of eligibility rules? The suspension shall end on September 30, 2006.

How are the developments to treat the units leased to displaced individuals? For units in its first year of the credit period , units temporarily occupied by displaced individuals will be considered qualified low-income tenant for the purpose of determining the project's qualified basis and for meeting the project's minimum set-aside.

For vacant units after the first year of the credit period , the status of vacant unit temporarily occupied by displaced individuals shall maintain the status (i.e. market-rate or low-income) prior to the displaced individual's move in.

What is the required lease term? There is not a minimum lease term. However, the lease shall not extend beyond September 30, 2006.

What type of documentation does the displaced individual need to have to show his/her status as a displaced individual? We strongly recommend that the owner/ management agent acquire the displaced individual's confirmation of registration through the Federal Emergency Management Agency (FEMA) and/or other documentation to show that they had resided in an Alabama , Louisiana , or Mississippi county/parish designated for Individual Assistance by FEMA.

After the end of the temporary housing period, may the displaced individuals remain in the unit should they desire? After the termination of the end of the temporary housing period, displaced individuals must be certified under the requirements of the LIHTC program to be a qualified low-income tenant.

What paperwork, if any, should the development acquire for displaced individuals? The Affidavit of Displacement, Temporary Housing Lease Addendum, and the Temporary Housing Self-Certification.

Is my development automatically considered temporary housing for displaced individuals? No. The owner must submit the Request for Approval to Provide Temporary Housing and must list the development on the National Emergency Resource Registry (NERR) maintained by the Department of Homeland Security. The web site for listing the project is : www.swern.gov .

Does the rent for displaced individuals have to be rent restricted? Yes.

Will housing displaced individuals who exceed the applicable income limits place the unit in a noncompliant status? Per Notice 2005-69, the Internal Revenue Service has temporarily suspended the income limitation requirements for displaced individuals from areas of Alabama , Louisiana , and Mississippi that are eligible for Individual Assistance from FEMA.

Can I evict an existing resident to provide housing to displaced individuals? No.

Do I have to verify income for those NOT displaced by Hurricane Katrina? Yes. All rules and regulations of the LIHTC program will remain in effect for residents/applicants not displaced by Hurricane Katrina.

Am I required to charge a security deposit? No. MHC strongly suggest that in this time of need that owners/ management agents waive security deposits, activation fees, and/or application fees to assist individuals displaced by Hurricane Katrina.

May I transfer tenants from a building damaged by Hurricane Katrina to a building that has not been damaged? Yes. When a president has declared an area a Federal Disaster Area, owners/ management agents may move tenants from a damaged building to another building without having to initially qualify them prior to move-in. However, documentation should be acquired within three to four months.

Does the development have to give preference to renting vacant units to individuals displaced by Hurricane Katrina? No. Implementation of the Relief from certain LIHTC requirements due to Hurricane Katrina is voluntary. Please be advised of fair housing regulations.

What if a recertification is due for an existing qualified resident in a disaster county and there is no way to receive verifications to recertify this resident due to Hurricane Katrina? Existing qualified residents are still subject to the recertification rules and regulations of the LIHTC program. However, if the resident's place of employment or the employer's verification department had been damaged by the Hurricane and there is no other form of verification (i.e. secondhand verifications), the tenant may self certify to his/her income. However, it is strongly recommended that the owners/ management agent acquire documentation to determine the location of the employer's offices in a disaster area.

Will the additional time be allowed to developments in a disaster area to correct outstanding noncompliance issues? Until further notice, compliance monitoring activities for developments in counties declared eligible for individual assistance by the FEMA will be suspended. However, said developments must maintain compliance to the rules and regulation of the LIHTC program.