CTCAC Implements Guidance for Compliance with VAWA for Tax Credit Properties

On December 22, 2017, the California Tax Credit Allocation Committee (CTCAC) issued a memorandum to all property owners and management agents of LIHTC (Low Income Housing Tax Credit) properties to implement the Violence Against Women Reauthorization Act of 2013 (VAWA). While the IRS has yet to release official guidance, CTCAC will require tax credit properties in California to comply with CTCAC’s “Violence Against Women Reauthorization Act of 2013 LIHTC Information and Checklist” beginning January 1, 2018.

A copy of CTCAC’s memorandum and LIHTC Information and Checklist can be found at: http://www.treasurer.ca.gov/ctcac/compliance/memos/vawa.pdf.

CTCAC’s Information and Checklist outlines the VAWA obligations for tax credit properties in California. It prohibits denial of admission or eviction of a tenant on the basis of, or as a direct result of, the fact that the tenant is or has been the victim of a VAWA crime and sets forth specific guidelines with regard to criminal activity related to VAWA crimes.

CTCAC adopts HUD’s Notice of Occupancy Rights Form HUD-5380, Self-Certification Form HUD 5382, and requires that these forms be provided to all tenants when admitted to the property and with any notification of eviction or notification of termination of assistance. Additionally, CTCAC will now require the use of HUD VAWA Lease Rider HUD-91067, which must be included in each tenant file.

Under CTCAC’s Information and Checklist, owners and management agents of tax credit properties also have an obligation to assist tenants with emergency transfers in accordance with a documented emergency transfer plan. Plans may include the option of lease bifurcation or transfer to another unit. Transfers must comply with IRS and CTCAC transfer requirements.

California LIHTC housing providers should review and revise their internal policies and procedures to ensure compliance with CTCAC’s memorandum and the LIHTC Information and Checklist by January 1, 2018.

For assistance with VAWA compliance and/or affordable housing legal issues, contact KTS’s Affordable Housing Practice Group at: AffordableHousing@kts-law.com.

Kimball, Tirey and St. John LLP is a full service real estate law firm representing residential and commercial property owners and managers. This alert is for general information purposes only. Laws may have changed since this article was published. Before acting, be sure to receive legal advice from our office. If you have questions, please contact your local KTS office. For contact information, please visit our website: www.kts-law.com. For past Legal Alerts, Questions & Answers and Legal Articles, please consult the resource section of our website.

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