KHC FAQs

No, our waiting list is closed at this time. When the waiting list is opened, KHC will have information listed on our website, Facebook page and Instagram.

1. Must meet the Residency Requirement (living in KHC area at application or a participant living in current unit 12 months unless early transfer is approved).
2. Must not have a pending or current repayment agreement with KHC.
3. During Shortfall Funding times, KHC will approve or deny outgoing portability requests based on the following:
• Port out will be approved if the agency is absorbing ports.
• Port out will be approved if the agency is billing, but the area is a lower cost area.
• Port out will be denied if the agency is billing, but the area is a higher cost area.

No. The manufactured home must be sold prior to closing.

Yes. A borrower can use KHC's DPA with the MRB Program.

The sale of a current home can happen same day, but it must close before the subject property closing.

A borrower purchasing in a targeted area may be a first-time or a repeat homebuyer. A borrower purchasing in a non-targeted area must be a first-time homebuyer.

Funds remaining for MRB and MCC programs are shown on the PowerLender Dashboard.

Only non-borrowing occupants taking title need to complete the form. 

Ownership in a timeshare would not disqualify a borrower from being considered a first-time homebuyer.

The MRB household income limits are based on household sizes of 1-2 persons or 3 or more persons. The income limit does not increase if there are more than three persons.

For MRB loans in a non-targeted area, the FTHB requirement is applicable to all borrowers and any non-borrowing occupants taking title.

If a loan is originally locked as an MRB loan and then later changed to Secondary Market, the interest rate will be updated to the Secondary Market interest rate as of the date transferred to the Secondary Market.

Yes. Imputed income from liquid asset reserves must be included in the KHC Income Calculator in PowerLender. Liquid assets (checking, savings) are included, but non-liquid accounts (retirement) are not.

KHC does not require three years tax returns. Review credit reports, fraud reports, and public records for due diligence in determining if a borrower meets the first-time homebuyer requirement, if applicable.

Yes, use the 3-4 person MRB compliance income limit for compliance since the total number in the household is 4.

The required documents are the Mortgagor Certification, Seller Certification, and Tax-Exempt Financing Rider. 

If applicable, these additional documents will be required: 

• Non-Borrowing Occupant Certification if there is a non-borrowing occupant taking title; 
• Child Support Certification if the applicant(s) should be receiving child support but is not; 
• Acreage Waiver if the property includes more than 1 acre of land but is not subdividable; and 
• Factory-Made Home Waiver if the borrower is in a non-Targeted area, is currently living in a factory-made home, but does not own the land the house is on.

Federal Recapture Tax may apply if a homeowner: 1) Sells their home within the first nine years; AND 2) Has a net gain on the sale; AND 3) Household income exceeds allowable income limits as adjusted for each year. It is advised that borrower(s) speak with a tax professional.

The KHC MRB Program is funded through the issuance and sale of municipal bonds. This allows KHC to offer below-market rates to lower-incomed households. There are specific qualifications that can be found in AllRegs.

Compliance/Maximum Household Income is based on the income of all borrowers and all non-borrowing occupants taking title to the property. The Non-Borrowing Occupant Certification (Form 98) must be completed by any non-borrowing occupant taking title.

KHC does not have overlays for this. Follow agency guidelines per the loan type.

KHC does not have an overlay requiring home buyer education for our programs. Follow agency guidelines for each loan type.

Open the loan in PowerLender and click the paperclip in the top right corner. This will open a screen that shows what has been printed, uploaded, or created along with dates and who did the action.

Sign up for eGrams by scroll to the bottom of our website and click the eGram link, which will take you to the eGram signup page.

KHC program guidelines can be found in the KHC Single Family Lending Library in AllRegs.

Contact and other servicing information for Current Homeowners (Loan Servicing) can be found on our website.

KHC does not offer a 2/1 buydown option.

All rate-related questions should be directed to khcuw@kyhousing.org. Permanent rate buydown options are at KHC’s discretion.

Email khcuw@kyhousing.org with the changes.

KHC reservations are for 45 days. Extensions are allowed (e.g., 7 days for .125% fee, 15 days for .25% fee). Any combination up to 37 days may be utilized. If the reservation reaches the 37-day extension period, the borrower will have to go worse case pricing. Extension fees can be passed on to the borrower.

Conventional loans through KHC are not assumable. All FHA, VA and RHS loans through KHC are assumable. Buyer must meet agency guidelines and KHC Secondary Market Program requirements. DAP second mortgage loans are not assumable; DAP loans would have to be paid off.

For a Secondary Market Program loan, borrower(s) may own other real estate property at closing, following insuring agency guidelines. The new property through KHC must be the borrower's primary residence. For MRB or MCC loans, borrower(s) may not own other property at the time of closing.

Cash back at closing on a purchase transaction cannot exceed the amount the applicant(s) has put into the transaction, such as:

• Earnest Money Deposit (EMD)
• Any fees Paid Outside of Closing (POCs)
• Home Inspection
• Termite Inspection

Any amount over what the applicant has paid should be applied as a principal reduction, first to the DAP loan (if applicable), otherwise, to the first mortgage.

KHC does not have an overlay for this. Please follow agency guidelines. If KHC DPA is also being used, KHC DPA must remain in a 2nd lien position. The city must be willing to take a 3rd lien position.

Yes. KHC DPA can be used along with KHC first mortgage financing when purchasing a KHC REO property.

Yes. Lenders must be eligible FHLB Members to reserve the grant funds with FHLB. KHC does not reserve the WHP grant funds for lenders.

Bank statements in another language are acceptable but will need to be translated before providing them to KHC. Translations must meet agency guidelines, per the loan type.

KHC requires each borrower to meet the minimum credit score requirements. For a government loan the minimum requirement is 620 and for a conventional loan the minimum requirement is 660.

The Note and Mortgage are to be signed with “wet" signatures. The CD, Deed, Note and Mortgage should be executed on the same day. If this is considered a “mail away" for one of the borrowers, it is understood those documents would be signed on a different day. However, KHC needs to know the reservation number and the reasons for the hybrid closing prior to approving the request.

KHC does not allow interest credits.

KHC does not have an overlay regarding IRS payment plans. Follow agency guidelines per the loan type.

KHC does not allow non-occupying co-borrowers or co-signors.

No. KHC requires a full appraisal on each loan regardless of loan type.

KHC does not have an overlay regarding student loan payments. Follow agency guidelines per the loan type.

KHC does not have an overlay for maximum amount of assets a borrower may have. Follow agency guidelines per the loan type.

When using MRB or MCC funds, imputed income from liquid asset reserves must be included in the KHC Income Calculator in PowerLender.

Liquid assets include, but are not limited to, checking and savings accounts. Non-liquid account types, such as a retirement income account, are not required to be included in the calculation. The liquid asset reserve amount is entered into the calculator and 1% of the reserve amount is included in compliance income.

Follow agency guidelines per the loan type. At minimum, KHC requires a one-month bank statement/printout for each account on the Uniform Residential Loan Application (URLA) be reviewed for KHC compliance purposes.

KHC requires the Seller's Disclosure of Property Condition (KREC Form 402) on all purchase transactions, regardless of real estate agent involvement. This is due to the Kentucky Revised Statutes § 324.360. The form is not required for: residential purchases of new construction homes if a warranty is provided; sales of real estate at auction; or a court-supervised foreclosure.

KHC follows insuring agency guidelines regarding termite inspections. If a termite/pest inspection is not performed, borrowers must sign the KHC Termite Waiver Certification Form. The waiver prints from the C-closing Stage forms in PowerLender.

• If a termite report is done, either as borrower choice or if required for the loan type, such as a VA loan, KHC requires a copy of the report.
• If a termite report shows damage to main support beams of foundation, a structural damage review must be provided by a structural engineer.
• Water in crawlspace or basement must be addressed.
• All infestation must be treated:
  • KHC does not accept partial treatment.
  • Proof of treatment must be provided.

KHC does not have an overlay for this. Follow agency guidelines per the loan type.

The title commitment and the title policy reflect the first mortgage amount.

Sign up for KHC eGrams by going to KHC's homepage, click the envelope on the bottom left corner, fill in the requested information, check the box for Lender eGrams, then click Subscribe.

KHC does not have an overlay for how the POA is reflected. Please follow agency guidelines per the loan type.

A non-purchasing spouse is permitted with KHC financing. They must sign the mortgage if the borrower is refinancing through KHC.  A non-purchasing spouse is not required to sign the mortgage on a true purchase transaction.

KHC does not have an overlay for charge-offs. Follow agency guidelines per the loan type.

A contract sales price higher than KHC's Secondary Market/MRB purchase price limit is not eligible for KHC financing.

Yes. A berm home is an eligible property type. Follow agency guidelines per the loan type.

No. An updated mortgagee clause will be a pre-purchase condition. KHC requires an updated certificate of insurance reflecting KHC's mortgage clause: Kentucky Housing Corporation, ISAOA, P.O. Box 4150, Frankfort, KY 40604-4150.

KHC will accept an owner-occupied duplex. However, KHC will not accept a 3–4-unit property at this time.

KHC allows a manual underwrite on government loans. Follow agency guidelines per the loan type. FHA loans should also follow the KHC-FHA Manual Underwrite Matrix

Yes. Follow agency guidelines per the loan type. KHC requires an Affidavit of Conversion to Real Estate and a copy of the title, which can be completed on or before closing.

KHC allows the following refinances:

• FHA
  • Streamline Non-Credit Qualifying
  • Credit-Qualifying, Simple
  • Rate/Term
• RHS Streamlined-Assist
• VA Interest Rate Reduction Loan (IRRL)

KHC will only subordinate a DPA loan when the first mortgage is coming back through KHC. If refinancing with another investor, the DPA must be paid in full. There are no pre-payment penalties.

KHC requires deposits over $500 to be sourced to determine if there is additional income that needs to be included in the compliance income calculation.

Amount of coverage must be equal to the loan amount.

Maximum deductible is equal to 5% of policy face amount, not to exceed $5,000.

KHC does not have an overlay for this. Follow agency guidelines per the loan type.

No. KHC does not allow.

Complete and sign the Automatic Clearing House (ACH) Cancellation form which is located under our Customer Care Services page.

Complete and sign the Mailing Address Change form.

Complete and sign the Automatic Clearing House (ACH) Agreement form which is located under our Customer Care Services page.

Payoff statement requests can be made by:

1. Contacting Customer Care Services toll free at 800-633-8896, extension 290. 
2. Requesting a payoff through our online web portal

Please note that your principal balance is not a payoff quote. If you have more than one loan with KHC, a separate payoff quote is required for each loan. 

Payoff funds must be sent in the form of a money order, certified check, cashier’s check, or attorney’s escrow check. Personal checks will not be accepted for payoff. 

Third party agencies must send a written request for payoff with the borrower’s signed authorization to Customer Care Services by fax at 502-564-5430 or by email at CustomerCare@kyhousing.org.

To sign up for automatic payments:

• Visit https://kyhousing.estatusconnect.com/ or,  
• Complete and sign the Automatic Clearing House (ACH) Agreement form which is located under our Payments page.

There are two options for getting replacement coupons mid-year.

1. You can print a monthly coupon online using our coupon generator application at https://wapps.kyhousing.org/KHC_FICSCoupon/Login.aspx.
   
   You will need your loan number, property zip code, and last name as show in our system. 

2. Requests for replacement books require a written request and a fee of $5 in the form of check or money order.
   
   Make sure to write your KHC loan number on the payment and mail with your request to: 
           Kentucky Housing Corporation
           1225 Louisville Road
           Frankfort, KY 40601

Do not delay payment while waiting for your replacement book. Simply write your KHC loan number on your check or money order and mail it to the address above.

Contact Mortgage Account Services toll-free at 800-633-8896, extension 216.

To determine if your loan is assumable, please contact Customer Care Services at 800-633-8896, extension 290.

As of April 15, 2020, please wire all funds as follows:

• ABA # 083000108 – PNC Bank, NA, 101 South 5th Street, Louisville, KY 40202
• Account # 3004361245 – Kentucky Housing Corporation Deposit Clearing
• OBI (Originator to Beneficiary Information) – Borrower name, address, and loan number (if available)

Please note proper credit will be delayed if the originator to beneficiary information is not included.

502-564-5430

The overnight mailing address is:

Kentucky Housing Corporation
Attn: Mortgage Servicing Department
1231 Louisville Road
Frankfort, KY 40601

• Payments may be made by using the Automated Payment by Phone System at 703-857-2117 which is available 24 hours a day; or,
• Payments can be made with a representative at 800-633-8896, extension 216 during business hours of 8 a.m. - 5 p.m. ET. 

Your payment will be withdrawn from your specified bank account. 

Spanish speaking customers please dial extension 702.

You will need the banking institution’s transit routing number, checking account number, and your KHC loan number when using either payment by phone methods.

Please note that federal law requires us to inform you that any information you provide to us can be used in the collection of your debt.

Payments are due on the 1st day of each month, unless otherwise specified in your Note.

1098 forms will be mailed by January 31 of each year.

1098 forms are accessible online by January 2nd of each year in your e-Status account, under Documents.

Payment books are mailed annually by January 31 of each year.

Mail payments to:

Kentucky Housing Corporation
1225 Louisville Road
Frankfort, KY 40601

Please make sure to include your loan number on your check or money order. To avoid late charges, make sure KHC receives your full payment on or before the due date indicated on your coupon.

Make sure to include your KHC loan number on any correspondence and mail them to:

Kentucky Housing Corporation
1225 Louisville Rd.
Frankfort, KY 40601

There are several reasons why you may be having technical issues making your payment including: 

• A web browser that is out of date. To access eStatus Connect®, you will need to install or upgrade to one of the following supported browsers: Internet Explorer 10+, Mozilla Firefox 11.0+, Google Chrome, or Safari 6+; 
• The page is being blocked. If you are using public internet, or your employer's connection, this page may be filtered; or,
• Too many people are accessing the page at one time. 

KHC recommends that you download the latest version of a supported browser. You may visit What’s My Browser to quickly see what version you are operating and visit the site at home. 

If you have made several attempts to pay your payment, please call KHC’s Customer Care Services at 800-633-8896, extension 290.

Yes, a borrower must have a bank account on an RHS manual underwrite. They must provide two months most recent consecutive bank statements. Minimum reserve is one month mortgage payment. Lenders must use the lesser of the current balance or previous month's ending balance.

KHC does allow the FHA $100 down payment program. Please follow agency guidelines.

KHC does not have a CLTV overlay for the FHA-based program with the DAP.

It is allowable for the FHA loan to be structured as a purchase and the CD appear as a refinance transaction. The DAP should show on page two of the CD.

Follow USDA guidelines for maximum ratios on a manual underwrite.

KHC would only do the permanent financing.

KHC will allow if it meets agency guidelines.

Yes. DPA income limits follow the program type income limits (Secondary Market or MRB/MCC).

Yes. KHC allows borrowers to utilize other sources of down payment, provided the other sources meet agency guidelines and KHC remains in a 2nd lien position.

Yes. A DPA loan may be paid off at any time without penalty.

Yes. A copy of the inspections must be in the file and the costs reflected on the CD as paid outside of closing, per applicable agency guidelines and TRID.

KHC DPA funds are for down payment and closing costs only.

The DPA loan number is not required to be listed on the Closing Protection Letter.

Yes, KHC's DPA has been temporarily increased to $12,500 and is repayable at 4.75% fixed interest rate amortized over a 15-year term.

Collect the data and calculate the average in dollars and cents, and then round the resulting UA to the nearest dollar (>=.50 round up, <=.49 round down).

Yes. Unless the borrower has already left the job and a VOE is provided showing the employment end date, the income must be included in the compliance income calculation.

KHC does not have an overlay for job time. Follow agency guidelines per the loan type.

KHC does not have an overlay regarding car allowance. Follow agency guidelines per the loan type.

Lenders must follow agency guidelines. If sufficient information is provided in the offer letter or contract to complete the KHC income calculator, a paystub will not be needed.

Yes, KHC requires a YTD P&L that goes through the end of the prior quarter. It does not need to be audited. If a borrower is not sure how to prepare a P&L, they can use a schedule C as a guide.

While the commission income is not being used in qualifying income, it needs to be included in compliance income. KHC Compliance Income will look at all possible income projected out over the next 12 months.

Yes. All income the borrower is anticipated to receive in the next 12 months should be included in the compliance income calculation.

For a KHC Secondary Market Program loan, use the amount of monthly rent received for the retained property minus the PITI from the retained property in the compliance income calculation. For MRB or MCC loans, rent income does not apply since borrowers may not own other property.

Compliance income includes, but is not limited to: Travel nurse per diem, VA Disability, Social Security, Social Security Disability, Child Support, Spousal Support, any cash income consistently deposited in accounts, Vehicle Allowance on pay stubs, and any income the applicant (or on MRB/MCC loans, any non-borrowing occupant taking title) will receive in the upcoming 12 months.

For Secondary Market Program loans, KHC requires applicant income. For MRB and MCC program loans, household income is used (includes borrowers and any non-borrowing occupants taking title).

No. Foster care income is not included in compliance income.

Use the KHC Income Calculator found in PowerLender to calculate compliance income.

The KHC Income calculator can be accessed from a reserved loan in PowerLender.

KHC does not have an overlay for a handwritten 1099 NEC. Follow agency guidelines, per the loan type.

No. The intent of the pre-application is to allow developers to evaluate how potential project sites rank relative to others and decide whether to proceed with a full application. For this reason, changing project sites after the pre-application submission is not permitted, as it would undermine the purpose of the ranking process.

The 2027-2029 QAP does not limit the “donated” land to only coming from a governmental entity (though that was initially the direction we were leaning). Now, the donation can come from any entity, so long as the underwriting and site control documents show no more than $5,000 in acquisition costs.

For new construction projects, the only scoring criteria required for the pre-application will be PolicyMap data. Those scores submitted at pre-application will carry forward to the full application. For existing supply projects, a Physical Capital Needs Assessment (PCNA) and a copy of the existing project-based rental assistance agreement that identifies the number of units covered by the contract, along with the most recent renewal (if applicable). Proposed rental assistance contracts do not qualify.
 

Permanent below market sources will be scored at the full application stage.

 Site control documentation will not be required at pre-application submission; it will remain part of the full application. Regarding changes to the site after pre-application submission, please refer to the response to Question #1 in the 2027 Q&A document.

Section 811 PRA and Section 8 project-based rental assistance are two distinct programs; therefore Section 811 PRA owners must complete an analysis that separates the PRA units from the project-based units and vice versa.

Yes, but only in the initial implementation of the new methodology, and only if the decrease exceeds 15% AND is equal to or greater than $10.

O/As can use either method, or both. There may be cases in which the O/A has no choice but to combine methods.

No KHC can not come to the property and inspect per your request.

O/As would treat them as two different unit sizes if they appear on the rent schedule that way and sample for both sizes. For example, the rent schedule may indicate both a One Bedroom Unit and then a One Bedroom Unit (Large). This indicates that the unit size is different, but the number of bedrooms is the same. It is likely that the UA is different as well. If this is the case, these unit types should be considered individually. (If the O/A is using the HUD worksheet attachment to the notice, the worksheet can be amended to include this additional unit type.)

Multifamily Utility Allowance Factors | HUD USER

Generally, O/As would exclude the units of residents paying a flat rate, but this rule assumes that those units are the minority of units. If most residents pay a flat rate, including them in the sampling will give O/As a sample more representative of the whole. If these units are included in the sample, document the reasons for doing so to help the CA/HUD determine if the O/A’s approach was reasonable. And if O/As include these units, calculate the average based on the flat rate, not on the usage.

Yes. Tenants refusing to sign a release form constitutes material noncompliance with the lease agreement, as defined in the lease agreement, and repeated violations can result in termination of tenancy. Further, for properties other than 236 and 221(d)(3), not signing the release form is a violation of the regulatory obligations of the family found at 24 CFR 5.659(b)(1).

To add clarity to the requirement, owners are encouraged to include language in their House Rules advising tenants of their obligation to sign release forms and to provide any information deemed necessary in administration of the program or face possible termination. Any changes to a property’s House Rules must be done according to the procedures outlined in HUD Handbook 4350.3, REV-1 paragraph 6-9.

A unit should be excluded if it has been vacant for more than 2 out of 12 months; units with only 10 months of occupancy may be included.

Yes, and EIV Rules of Behavior.

Yes. General requirements for escrows are:

• Repairs that affect livability or safety must be completed and inspected prior to loan closing.
• Delegated and Correspondent lender's DE Underwriter makes the determination if escrows should be allowed.
• TPO lenders must email khcuw@kyhousing.org for approval of escrowing of repairs or incomplete items.
• KHC will hold funds for TPO lenders, but Delegated and Correspondent lenders are responsible for holding escrow funds.
• Weather related escrows – expiration dates are as follows:
  • November – April: Due by May 31
  • May – October: Due 30 days after closing.
• If HUD REO, the repair escrow should be listed in the purchase contract.
  • Otherwise, KHC will need a contract addendum identifying who is responsible for the cost of repairs.

KHC does not allow non-occupying co-borrowers or co-signors.

Yes, to the greatest extent possible, to standardize the data for variables such as weather or planned upgrades to units that could affect utility consumption.

Yes, the UA needs to be changed for factor-based analyses as well, whether it is an increase or a decrease.

The sample selected should include only units covered under the RAD PBRA HAP Contract. Again, these are two distinct programs, and the unit samples should not overlap.

Smaller properties will necessarily require a proportionately larger sample size (including 100% sampling) in order to ensure statistically valid results. Management should encourage residents with medical equipment who have extraordinary utility bills to seek a reasonable accommodation for a higher utility allowance.

A new baseline analysis is not mandated. MFH wants owners to look closely at the results of a factor-based analysis and expect that they will make an appropriate decision about further analysis if those results appear very different from what their own paid utilities suggest (i.e., their common area utilities). This analysis does not need to be provided to the CA/HUD. The comparison is intended to have owners take a “second look” at the factor-based results. If it is suspected that special circumstances cause year- to-year fluctuations that materially differ than the utility adjustment factor, owners and CAs may consider completion of a new baseline.

If the concern was addressed with management first and not being resolved, then the best practice is to send all tenant concerns to pbcatenantconcerns@kyhousing.org 

All approved claims must be requested on the voucher 90 days from the date approved claim is received.

We will follow up weekly with management to make sure progress is being made.

Yes, an O/A’s next utility analysis must be a baseline analysis in accordance with the requirements of the notice.

By property (keeping in mind that if the property consists of multiple buildings, the buildings must be substantially similar in order for the O/A to sample by unit size property wide).

Get an average for the unit for the 10 months; do not use data from the partial or unoccupied months.

The owner must demonstrate that every effort has been made to obtain the required sample and to otherwise meet the requirements of the analysis. It is an owner’s responsibility to provide an analysis that follows the protocol outlined in the notice as closely as possible, recognizing that the “perfect” sample may not always be available. It will be HUD’s or the CA’s responsibility, as appropriate, to make sure that the analysis justifies the resulting UAs, with whatever compromises in the sampling were necessary to achieve that analysis. The CA, in consultation with HUD, may require the owner to complete another baseline the following year.

Even if 100% sampling is required, owners must exclude units that have not been occupied for at least 10 months. (See also question 6).

Calculate the new UA both ways, with and without rounding. The new UA will be whichever method provides the higher UA. The table below shows two examples.

Example 1 results in a UA of $46, both with and without rounding. The UA will therefore be $46. In Example 2, the UA with rounding results in a UA of $82; without rounding, the UA is $81. The UA will therefore be $82.

First-Year Adjustment

Example 1

Example 2

Current UA

$50 (gas: $15; electricity: $35)

$75 (gas: $10; electricity: $65)

UAF

Gas: 0.892Electricity: 0.992

Gas: 1.018Electricity: 1.039

First-year adjustment

$15 x 0.892 = $13.38$35 x 0.992 = $34.72

$10 x 1.018 = $10.18$65 x 1.039 = $67.54

New UA

$13.38 + $34.72 =$48.10New UA = $48

$10.18 + $67.54 =$77.72New UA = $78

Second-Year Adjustment

Current UA

$48 (gas: $13; electricity: $35)

$78 (gas: $10; electricity: $68)

UAF

Gas: 0.892Electricity: 0.992

Gas: 1.018Electricity: 1.039

With Rounding

Second-year adjustment

$13 x 0.892 = $11.60$35 x 0.992 = $34.72

10 x 1.018 = $11.08$68 x 1.039 = $70.65

New UA

$11.60 + $34.72 =$46.32New UA = $46

$11.08 + $70.65 =$81.73New UA = $82

Without Rounding

Second-year adjustment

$13.38 x 0.892 =$11.93$34.72 x 0.992 =$34.44

$10.18 x 1.018 =$10.36$67.54 x 1.039 =$70.17

New UA

$11.93 + $34.44 =$46.37New UA = $46

$10.36 + $70.17 =$80.53New UA = $81

No. ABLE accounts are not considered an asset. The balance in an ABLE account does not count as a resource, and distributions from the account are not considered income. However, the account owner must be aware of the contribution limits and the potential impact on their eligibility for public benefits programs.

Yes

Yes Refer to the HUD Handbook 4350.3, REV-1, Change 4, Chapter 7, Section 2, Paragraph 7-10, A NOTE: NOTE: At a minimum, owners must apply screening criteria for drug abuse and other criminal activity, *including State sex offender registration, and use of the EIV Existing Tenant Search to persons proposed to be added to the household, including live-in aides. (See paragraph 7-11 B.1 and paragraph 4-7 B.5 for more information.) The owner must make sure that the person also discloses and provides verification of his or her SSN. (See Chapter 3, Paragraph 3-9 for more information on SSN disclosure requirements.)*

For now, the exclusion applies only to units with flat utility rates. MFH will review this policy and determine the best treatment of units receiving varying forms of subsidies. MFH welcomes O/As feedback on this issue.

The UA analysis covers only those units that receive a UA; only HUD-assisted units will be included in the analysis.

Owners may offer incentives but O/As may not pay for them out of project funds nor include them as an expense in the budget.

No, owners may develop their own worksheets to suit their needs, as long as they provide HUD/CA with adequate documentation.

Contact Customer Care Services at 800-633-8896, extension 290, Monday through Friday between the office hours of 8 a.m. to 5 p.m., ET; TTY 711; or email CustomerCare@kyhousing.org.

Have the relative obtain the info, or if possible, use other units for the sample.

Here is an example of this type of phase-in:

Year One

Current Utility Allowance

$90

Decrease in First Year

40%

New Calculated Utility Allowance

$54

Year 1 Utility Allowance

$76

With a phase-in cap of 15% each year, the new capped utility allowance is $76 ($90 – (90*.15)). This is the utility allowance that gets implemented in Year 1.

Year Two

Second Year UAF (applied to calculated, uncapped new utility allowance)

+2%

New Actual Utility Allowance

$55

$54 + (54*.02)

Tenant’s Second Year Capped Utility Allowance

$65

$76 – (76*.15)

The utility allowance that gets implemented in Year 2 is $65 even though the calculated utility allowance is $55.

Year Three

Third Year UAF (applied to calculated, uncapped new utility allowance)

+2%

New Actual Utility Allowance

$56

$55 + (55*.02)

Tenant’s Third Year Utility Allowance

$56

Implement the actual calculated utility allowance as it is less than 15% lowerthan the previous year’s utility allowance.

In this example, the phase-in occurs over two years of the cycle (baseline year, plus first factor-adjusted year). In each of the factor-adjusted years, the factor is applied to the previous year’s calculated utility allowance (i.e., what the utility allowance would have been if there were not a cap put on it because of the requirement to phase it in). After that, there is a new baseline and phase-in requirements no longer apply.

Any year there is a decrease in the utility allowance, tenant notification must be provided.

This is not a HUD requirement, nor should any agency or HUD office impose such a requirement.

The balance must be left to accumulate on the debit card. For utility allowance reimbursements, once a check is made payable to the tenant, or funds are deposited to a tenant’s debit card, ownership of the funds passes to the tenant. HUD does not receive the funds back, nor does the owner.

Although the notice indicates that this type of assistance must be reported as income, assistance under this specific program is excluded from income. Please see the May 20, 2014 Federal Register for the current list of federally mandated exclusions from income, here: http://www.gpo.gov/fdsys/pkg/FR-2014-05-20/pdf/2014-11688.pdf.

No, O/As should not enter any value for the months that are vacant (do not enter $0). Or, using the unprotected version of the worksheet that is now available, change the formula so that the average is calculated on only non-zero months. If O/As have only 10 months of data, the average must be calculated on only those 10 months.

The release form included with the notice is a sample. Owner/agents may use their own release form, or a release form provided by the utility provider.

The O/A shall submit backup information that demonstrates how s/he calculated the new utility allowance(s). HUD/CA has discretion to determine the documentation needed to support the utility allowances.

Some examples of backup information include:

1. Copies of the tenant data received from utility providers, this is typically in summary format; or
2. Copies of the printouts indicating a summary of monthly data if the tenant was able to obtain data online from their utility provider for the previous 12 months, or 10 months if the case may be; or
3. If the O/A obtained actual monthly utility bills from a tenant, the O/A may submit a spreadsheet summarizing the average of the monthly bills. Actual utility bills may be requested at the discretion of HUD/CA. These bills, regardless of whether they are provided to HUD/CA, must be retained by the owner for three years;
4. At the discretion of HUD/CA, there may be cases where a combination of the above will need to be performed.

The implementation schedule is based on the contract anniversary date. If that date falls within the first 180 days after the publication of the notice (6/22/15), then the Owner/Agent (O/A) has a choice—s/he can choose to follow the new methodology or follow the existing methodology. If the contract anniversary date is more than 180 days after the publication of the notice, s/he must follow the methodology in the notice.

The UAF is a component of the OCAF and so will typically be published yearly when the OCAF is published.

The notice indicates that when rate increases cause UAs to increase 10% or more, an owner can submit the following evidence of the change: (1) utility bills from the month prior to the rate change and the first month after, or (2) other verification of the increase from the utility provider. So, in that case, the owner isn’t looking at historical data, but actually justifying the rate increase with the most current data.

Yes, O/As would apply the utility rate increase to that component of the UA allowance, e.g., electric rates go up 15% so if the UA for the property comprises both electricity costs and gas costs, O/As would apply the 15% to the electricity component of the UA.

In years when UA baseline calculations are anticipated, make every effort to collect information for the vacating resident prior to their departure. Ten months of utility data is needed for the same unit, but a change of resident during data collection does not impact the analysis. In other words, O/As could have 5 months of utility data for one resident and 5 months for another resident in a baseline analysis. If O/As cannot obtain the information for at least 10 months, O/As should not use the unit in the sample.

Yes. Refer to the HUD Handbook 4350.3, REV-1, Change 4, Chapter 5, Section 1, Paragraph 5-6, I & J.

A utility analysis should be prepared four to six months prior to the anniversary date of the contracts, with submitted data covering the prior 12-month period. Thus, at the time of contract renewal, the data used in the utility analysis to support the utility allowance would generally be no more than 18 months old.

Utility allowance phase-in eligibility is determined at the time of the first baseline analysis after implementation of Housing Notice 2015-04 only. At this time, the total decrease should be examined to determine if the decrease is more than 15% or $10 from the last utility allowance provided.

We close all concerns once we receive confirmation from the tenant and completed work orders from management are signed and dated by both parties.

All claims must be submitted 180 days from the date the unit was ready for occupancy.

Going forward, Utility Allowance Factors will be effective on the same date as the OCAF, which is typically February 11 of each year. Factors for 2017 will be released at the same time as the FY 2017 OCAF.

You can find our available inventory on the Property for Sale page. This includes single-family homes scheduled for Master Commissioner (real estate owned, or REO) sales across the state, as well as select multifamily project properties open for bids.

Best practice is to send them to pbcaspecialclaims@kyhousing.org

The notice intentionally does not identify HUD-approved tools as the field is changing regularly. This is the pertinent language in the notice:

“The energy consumption model must, at a minimum, take into account specific factors including, but not limited to, unit size, building orientation, design and materials, mechanical systems, appliances, and characteristics of the building location. Second, the

utility estimates must be calculated by either (1) a properly licensed engineer or (2) a qualified professional approved by HUD.”

One example, however, is the CUAC tool, which is available for use in California, from the website of the Tax Credit Allocation committee. For the specific question regarding approval by HFAs, O/As would need to contact the relevant HFA directly.

Multifamily Housing Regions | HUD.gov / U.S. Department of Housing and Urban Development (HUD)

No, HUD systems will not automatically apply the UAF to the previous year’s utility allowance, nor is it the PBCA’s responsibility. Utility allowance regulations require an owner to “submit an analysis of the project’s utility allowances” for review and approval each year. This requirement extends to the factor-based years in which an owner will show how the factor was applied and identify the resulting utility allowance recommendation.

An unprotected version has been posted to HUDCLIPS. (Password is Sharkey)