US Virgin Islands

US Virgin Islands

USVI News

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.

October 11, 2018

The Social Security Administration has announced the Cost-of-Living Adjustment (COLA) for 2019. The COLA will increase 2.8 percent beginning on December 29, 2018.www.ssa.gov

April 2, 2018

HUD has released the 2018 income limits. They are effective 4/1/18 and must be in use no later than 5/15/18. Be sure to check the MTSP limit chart to determine which income limits to use for your property.

To find your 2018 income limits visit: https://www.huduser.gov/portal/datasets/mtsp.html

January 5, 2018

Section 42 properties affected by the recent hurricanes
Due to the Territory’s designation as a Presidentially Declared Disaster Area there is potential relief from loss of credits and recapture. We urge all owners to review Section 42, along with IRS Rev. Proc. 2014-49, and to have discussions with their tax counsel as soon as possible. To qualify for relief the owners must at a minimum follow certain steps, as outlined below.

1. Owner must submit a Casualty Loss Form prior to 2/15/2018*.
2. Owner must submit a timely and accurate Annual Owner’s Report that references the casualty loss.
3. Owner must complete the restoration prior to 10/31/2019.
4. Owner must submit a Property Restoration form prior to 10/31/2019.
5. Any BINs not completely restored by 10/31/2019 will be subject to recapture and reduction in eligible basis.

The VIHFA is required to submit an 8823 to the IRS reporting the loss but will explain special circumstances surrounding the loss in the 8823 notes. Please contact VIHFA or Spectrum Enterprises, Inc. if you have any questions.

*Please note that the Annual Reporting Deadline for U.S. Virgin Islands is also 2/15/2018. All End of Year materials are due on this date.

  • VIRGIN ISLANDS HOUSING FINANCE AGENCY CASUALTY LOSS FORM (WORD) (PDF)
  • Property Restoration Form (WORD) (PDF)

  • All Forms should be submitted to Daryl Griffiths and Janine Hector at VIHFA. Please CC Wil Whalen at Spectrum as well.

  • dgriffith@vihfa.gov
  • jhector@vihfa.gov
  • wwhalen@spectrumlihtc.com

  • Welcome!

    Spectrum Enterprises has just been awarded a new contract by the Virgin Islands Housing Finance Agency (VIHFA) for compliance monitoring of their Low Income Housing Tax Credit (LIHTC) and HOME investment Partnerships Program (HOME) rental properties.  We have been doing LIHTC monitoring in the islands for many years and started monitoring their HOME rental program in 2005.