Connecticut

State News:

February 17, 2021

Hello Owners/Managers,

Please review the updated FAQs for LIHTC Compliance Monitoring. There is some very important guidance.

The IRS published Notice 2021-12 that included specific provisions that adjust LIHTC Compliance requirements for the period beginning 4/1/2020 to 9/30/2021.

*Owners are not required to perform annual recertifications for the period 4/1/2020 to 9/30/2021. They do not need to be made up retroactively.

Please review the attached for all details with guidance on CT compliance during COVID.

Thank you. Stay safe.

Click here to view updated COVID-19 CHFA / Spectrum LIHTC Monitoring FAQs

January 25, 2021

2020 END OF YEAR REPORTING DUE APRIL 1st 2020.

As we begin 2021, we will be collecting the annual submission of year-end documentation for 2020. This submission is required by the Internal Revenue Service, as noted in Section 42 (26 CFR Part I1.42-5 (c)) of the Internal Revenue Code, and by the Connecticut Housing Finance Agency (CHFA). We have made every effort to make this submission process as easy and efficient as possible with the addition of tutorials and frequently asked questions on our website.

If you scroll down you will see a grey bar with End of Year Reporting and Information. You may obtain all relevant documents and information here.

October 13, 2020

The Social Security Administration has announced the Cost-of-Living Adjustment (COLA) for 2021. The COLA will increase 1.3 percent beginning on December 31, 2020.www.ssa.gov

March 31, 2020

HUD has released the 2020 income limits. They are effective 4/01/20 and must be in use no later than 5/15/20.Be sure to check the MTSP limit chart to determine which income limits to use for your property.

Rents from CHFA are now posted. They can be found under "CT Income Limits and Area Definitions" below.

To find your 2020 income limits visit: https://www.huduser.gov/portal/datasets/mtsp.html

Connecticut Contacts

News Archive

April 24, 2019

HUD has released the 2019 income limits. They are effective 4/24/19 and must be in use no later than 6/8/19. Be sure to check the MTSP limit chart to determine which income limits to use for your property.

Rents from CHFA are now posted. They can be found under “CT Income Limits and Area Definitions” below.

To find your 2019 income limits visit: https://www.huduser.gov/portal/datasets/mtsp.html

February 25, 2019

On 2/26/19 the Treasury Department will officially publish significant changes to LIHTC monitoring requirements. A copy of the publication can be found HERE

* Advance notice of file reviews and inspections will be limited to no more than 15 days.

* Same day notification of the particular units and files to be reviewed.

* The number of units and files reviewed will increase for properties with 100 or fewer units, decrease for properties with more than 100 units.

The IRS has severely limited the amount of advance notice monitoring agencies are allowed to give LIHTC property owners of upcoming file reviews and physical inspections. This is presumably because some owners have used the advance notice to make deferred repairs and improvements they otherwise would have put off. As a result, the conditions noted at the time of the inspections do not accurately reflect the conditions the tenants experience on a regular basis. The IRS believes giving Owners no more than 15 days advance notice of an inspection and/or file review will help eliminate this gaming of the system. By using same-day notice of which units/files in particular will be reviewed, the IRS believes the results of the reviews will better reflect actual conditions.

These changes present significant logistical issues for Owners, Managers, and Monitoring Agents. Allocating Agencies are required to implement these changes no later than 12/31/2020. You should review your policies and procedures now as these changes can be put in place any time before then.

CT Compliance Manual

Connecticut LIHTC Compliance Manual (PDF)

The Connecticut Housing Finance Authority (CHFA) is pleased to provide you with the Low-Income Housing Tax Credit Compliance Manual for the State of Connecticut.

The Compliance Monitoring Manual is provided as a reference for Low-Income Housing Tax Credit compliance monitoring procedures and, to inform developers, owners and managers of the reporting requirements implemented by CHFA and SPECTRUM. This Manual is not a substitute for existing federal laws and regulations.

Please direct any questions concerning the Manual or compliance monitoring to SPECTRUM at (207) 805-0035. Any additional issues or questions can be referred to Colette Slover, CHFA Multifamily Underwriter II at (860)-571-4338 or Colette.Slover@chfa.org.

Demographic Reporting to HUD

End of Year Reporting and Information

All end of year materials due annually on April 1st.
CT Owner Letter 2020 Including EOY instructions and important notice(PDF)
Owner’s Certification of Continuing LIHTC Program Compliance (PDF)
Post Year 15 Owner’s Certification of Continuing LIHTC Program Compliance (PDF)
Spectrum Status Software
Status Report Software Instructions
Utility Allowance
Certificate of Continuing Education

Post Year 15 Compliance Monitoring Policy

CHFA has established a policy regarding how properties will be monitored and consequences for noncompliance during the Extended Use Period. The purpose of this policy is to ensure compliance with the Extended Low-Income Housing Commitment (ELIHC).

All End of Year Documentation must continue to be submitted annually. This includes the End Of Year Database, Post 15 Year Owner Certification, and Utility Allowance. Please refer to the Policy below for more details. The documents below serve as Connecticut Housing Finance Authority’s Post Year-15 Compliance Monitoring Policy

All end of year materials due April 1st annually.
Spectrum Status Report Software
Status Report Software Instructions
Post Year 15 Compliance Monitoring Policy (WORD) (PDF)
Post Year 15 Owners Certification (PDF)

Required and Recommended CT Tenant Forms

Required Forms:

Tenant Application (PDF)
Interview Checklist (PDF)
Recertification Update (PDF)
Certification Worksheet (PDF)
TC-100 Tenant Income Certification Effective January 1, 2020 (PDF)
Self-certification of Income (PDF)
Student Verification (PDF)
TC100A Student Status Household Affidavit (PDF)
TC100 B Lease Addendum (mixed income) (PDF)
TC-100 B(1) Lease Addendum (100% qualified) (PDF)
TC-100 D Employment Verification (PDF)
TC-100 F Certification of Zero Income (PDF)
TC-100 H Under $5,000 Asset Certification (PDF)

Recommended Forms:

Investment Account Verification (PDF)
Child Support or Alimony Verification (PDF)
Financial Aid Affidavit (PDF)
Bank Account Verification (PDF)
Investment Verification (PDF)
Life Insurance Verification (PDF)
Pension Verification (PDF)
Public Assistance TANF Verification (PDF)
Real Estate Asset Worksheet (PDF)
Real Estate Verification (PDF)
Section 8 Income Verification (PDF)
Self Employment Affidavit (PDF)
SS & SSI Verification (PDF)
Clarification Form (PDF)
Unable to obtain Third Party Verification (PDF)
Unemployed Status Affidavit (PDF)
Unemployment Verification (PDF)
Verification of Terminated Employment (PDF)
Pension Verification (PDF)

CT Income Limits and Area Definitions

LOW-INCOME HOUSING TAX CREDIT
INCOME LIMIT DISCLAIMER

These materials are intended to assist owners in meeting the requirements for complying with Internal Revenue Code Section 42 and Section 1.42-5 of the Regulations thereunder. However, it is important to note that compliance with IRC 42 and the Regulations is solely the responsibility of the owner of the building for which the Low-Income Housing Tax Credit is allowable, and the owner is solely responsible for the consequences of any non-compliance. CHFA shall not be liable for any loss or damage caused by any inaccuracies in the information contained herein, and suggest you review such information for accuracy prior to implementation.