Ebony Hall (00:06) Welcome back to this week's Tuesday Tip. I'm Ebony Hall and she's Vicki Bell. How you doing, Vicki? Vickie Bell (00:12) Hi Ebony, how are you today? Great, great. Ebony Hall (00:13) I'm all right. We're recording this on a Monday and it actually feels like a Monday. Vickie Bell (00:19) It has been a Monday. It has been a Monday. I hope you guys are having a better Monday than Ebony and I. Ebony Hall (00:27) But we're alive and we're thankful, so that's good. We got a bunch of hot topics today. Well, not a bunch. We're going to talk about three in particular, right, Miss Vicki? Vickie Bell (00:37) We have several hot topics. I'm going to list them, and we're only going to talk about three of them. We're going to have some additional staff, like Nytira Mickel, who's over our contract renewals. She's the lead. Contract management specialists and we'll have DeAnna Baker who's over our vouchers She's our lead voucher specialist because some of the changes in the hot topics will affect their departments I hope you've enjoyed Pam's session. She's been really good on getting you some great information on doing your MORs and the MOR expectations of you guys Ebony Hall (01:20) Mmm. Vickie Bell (01:22) So our topics today are. Did you know, you know, anytime anybody starts out with, did you know your ear kind of leans forward? But did you know that HUD has put out the annual inflationary adjustment and passbook rates? We're going to talk about it a little more in depth after we list the others. Also, HUD published new forms. When I saw this notice that said HUD has new forms, I said, HOTMA's here YAY! Ebony Hall (01:30) Ha Vickie Bell (01:56) And I opened the forms and they all had to do with contract renewals. So that's why we're gonna have Nytira. She's gonna tell you what she needs and what's expected of you. And we look forward to having her on, Ebony and I, as our guest next week. We also have a lot. in Fair Housing. Fair Housing has three topics. They have preventing and addressing harassment in housing, and there's a notice that Ebony will post when we talk about it. The guidance on applications of Fair Housing and the screening process. Now I must admit to you guys that I kind of slipped this one. And when I say I slipped this one, I was at the Regional SAHMA which is a great event. And one of the attorneys that did the Fair Housing section talked about the things that HUD will require in our screening process and our application process and how it comes under the Fair Housing umbrella. Well, let me just tell you when she named a couple of those things, being a former manager, being a former regional, I said, ⁓ no, I've got to comment on this. I've got to comment. I thought it was still out to comment, but comments closed guys in June of 2025. So what we're waiting on now is the final notification. lot of changes there. Ebony did a Ebony Hall (03:11) You Vickie Bell (03:35) blog under the Fair Housing on Housing Credits and other real estate related transactions and it was really really good. We might mention one of two things out of there. We've also had blogs on the Renter's Bill of Rights but we've had a lot of calls on that lately so we'll discuss that a little later. So Ebony, first of all let's hit our HUD and inflation and adjustment values. I want to say first of all that I know you guys are getting prepared for your 2025 January AR as you should be. We've had a lot of calls. Do we do it according to HOTMA? Do we do it? We're sticking with the same thing that we've been saying for the last six months until your software changes, until you get new software and until we get new documentation. Ebony Hall (04:33) You Vickie Bell (04:39) documentation from HUD. We need leases. We need so many things from HUD that I thought had come. But until they give us those things, we're going to stick with processing under 202D and not 203A. And if we do that and they come out in, let's say, November or December with all of the forms in the software, we'll just have some minor corrections to make to the existing AR for January. So let's kind of talk about them a little bit. Hopefully you all can see the screen. Many of you already know some of these things because I've had calls from some of you about what do we do now. Ebony, do you have a comment on them? Ebony Hall (05:26) I not. I mean, it's a lot to take in and I'm guessing there might be some questions about the family asset eligibility restrictions. Vickie Bell (05:37) Yes, we've got a lot of those so far. Y 'all excuse that, I forgot to turn it off. Ebony Hall (05:42) It's okay. Vickie Bell (05:47) Let me just turn it off. Okay. Yes, we've had a lot of calls about that. And pertaining to what do I do? Do I do the 2025 or do I do 2024 or do I do nothing? And we're advising here at Navigate. Ebony Hall (05:49) turn mine off too. Vickie Bell (06:13) as I just said, that you wait until your software is in place before you do anything because the software is going to carry a lot of the heavy lifting for you in terms of these figures changing. So let's look at some of the figures. Under the eligibility restriction, It says asset limitation and it talks about the eligibility restriction on net family assets. As you know, that restriction under the 2024 HOTMA Rule was at $100 ,000. It's being increased to $103 ,200. The next one involves annual income. The threshold above which imputed returns must be calculated on net family assets. Well, they started at $50 ,000. You count all over $50 ,000. That $50 ,000 has been increased to $51 ,600. And just seeing those two and how the figures have changed from one to the other, it lets you know that if you go ahead and process under 203A, you probably have a lot of changes that are going to come out. So let's just keep 202D in mind for now. The next one is threshold above which the total value of non -necessary personal property is included in your net family assets and that has gone from $50 ,000 to $51 ,600. There's an increase there also. The amount of the net assets for which the PHA or the multifamily housing owner grantee may accept self certifications and now you have to look back at your tenant selection plan and if you have put in your tenant selection plan fifty thousand dollars that's okay for now But once we get our software in place, you're going to have to change all of these figures to mirror what we have working at the time that the software is put in place. But right now, it's $50 ,000. So your tenant selection plan probably says $50 ,000. But in 2025, that will increase to $51 ,600. Ebony Hall (08:35) you Vickie Bell (08:40) Now, don't think that every year you're going to have to change this. It's going to be according to what HUD brings out as the adjustment figures. we have income exclusion for earned income and dependent full -time student status. Well, you know under 202D, it was $480. And guess what? It remains the same. It's still $480. The same is true for the income exclusions for adoption payments. The adoption assistance payments were $480, and they're going to remain at $480. Ebony Hall (09:11) You Vickie Bell (09:30) Next we have the income exclusion. Well, we just talked about the adoption. The next one we have is mandatory deduction for elderly disabled families. Well, under 2024, it was supposed to be 525. It is still holding. at 525, but under 202D, we have $400. So that's what we're using now. It's $400, but it's projected to change for 2025 to 525. And you also have your dependent deduction. It's always been 480 under 202D, under the 2024 HOTMA rules and it's remaining the same under 2025. So I really like it when it remains the same. That's a lot of adjusting that you guys don't have to do. Let's talk about the passbook rate. Many of you, when the passbook rate changed in 2024 to 4 .0, Ebony Hall (10:29) Mm -hmm. Vickie Bell (10:43) changed. Some of you did not. You all stayed at the other 2023 passbook rate and HUD said you could do either or. Well the projected passbook rate for 2025 is going to be 0 .45 instead of 0 .40. But again I advise that you use what you have until the software is in place and then we'll go back and make corrections for adjustments. Now the thing about corrections is the things that you will be correcting will involve your 2025 AR. Therefore, you won't be doing an IR, because many of you want to do IR because it's a bandaid and it just bandages everything. You will not be doing an IR. You will be doing a correction to the move -in. And I'm sure DeAnna will talk a little more about that. So that takes care of the annual inflationary adjustments and the passbook rate. If you have any questions, feel free to contact us and let us know. going to post these things out on our website for you to see. But what are the magic words? Ebony Hall (12:07) wait until your software is up to date. Vickie Bell (12:09) There you go. You passed the test, Ebony. You passed the test. Wait until your software is up to date. There are going to be some adjustments that you're going to have to make, but let's wait and make one adjustment opposed to two or three. All right, what you want to talk about next? Ebony Hall (12:25) Yes. We could either do the new forms or the guidance on applicant screening. Vickie Bell (12:34) Let's talk about the new forms. All I can say about the new forms is that we will have Nytira with us next week. And she'll go over these forms individually. But there were 30, how many, Ebony? OK. There are. Ebony Hall (12:36) Okay. I think you counted 28. Vickie Bell (12:53) 33 new forms, yes. There are 33 new forms. And I don't want to confuse you to tell you what the contract renewal or our contract. Ebony Hall (12:54) 33. ⁓ wow. Vickie Bell (13:06) specialists are doing with these forms, but I do know that some of them they are returning for additional information or either you have sent in old forms. So we look forward to having Nytira next week to break those forms down for you. Ebony Hall (13:24) in meantime they can go to HUD clips. Vickie Bell (13:26) meantime they can go to HUD clips. And meantime also you'll have something posted on our page. Okay. Okay. Ebony Hall (13:28) Yes. I will have this list posted on our page so they can go through it. And next, I guess we have the guidance, right? Vickie Bell (13:42) Yes, we have the guidance on the screening. Now, unfortunately, because we tried to keep these segments within your time frame so you can listen and we know that you have properties to run and errands and things to do on your property. I just wanted to tell you briefly, we're going to break this down also. But as I said, this was out for comment. It is no longer out for comment. We're waiting on HUD to publish their final, they're reviewing the comments and we're waiting on them to post their final decision on what we are and what we're not including. under the screening for applicants. But let me tell you, you know how some properties have a look back period, a applicant comes in and they have a criminal history. We try to look at convictions opposed to arrest. HUD is saying that that look back period that they're seeing that managers have will look back three years. You know, you haven't done anything in three years, so we'll give you an application. Or we'll approve your application if you're eligible. There are some companies that have a five year look back period. Some that have a seven year look back period. HUD is saying that we should not have. a look back period. Now, I don't know what all of the comments were that went into this session. I know that those of you who are members of NAHMA, that NAHMA's attorneys wrote in and they have a lot of comments. We'll see just how much influence NAHMA had on HUD's decision once this rule is published. I've had people to have different opinions about it. I've heard some managers say, ⁓ if we don't have a look back period, those residents will try to run our property. I've heard managers say, well, you know, they deserve another shot at society and at housing and at living. So we'll just see how HUD decided that they would determine it. But that was one of the things that they mentioned in this proposal. And I sure hate that I didn't get in on on the comment period, but I'm sure that the NAHMA attorneys represented us all very, very well. It used to be that certain management companies, whoever did their screening had a certain number that they would allow for credit. That's questionable now, or it was questioned and they asked for comments. So if... You had one of those companies that approves based on credit. Sometimes you don't even see the credit report. They just send the report back to you. Yes, this person has been approved based on criminal and credit. No, this person hasn't. And HUD is looking at that. What amazed me, I guess, the most is that it's under our fair housing umbrella now. Our application has always been under the fair housing umbrella. umbrella and you've always had to do for all what you do for one. And it's always been questionary, but now it reads guidance on application of the Fair Housing Act to screening of applicants for renting housing. It's just spelled out in those big bold blue letters there. So we will get into this a little later in terms of in depth during this sessions, during the sessions that we're having. Ebony Hall (17:28) Mm -hmm. Mm -hmm. Vickie Bell (17:56) for September. And if you have not, please go on our website, print this off, and read these changes because they will affect you and your property. Ebony Hall (18:10) Most definitely. You know, Vicki, at SAHMA AI, and it's mentioned here on this first page, was a big topic of conversation. In fact, they had a whole class about it as far as tenant screening companies using AI in their services. So just things to be aware of. We actually have a couple of blogs at NavigateHousing .com discussing using AI in affordable housing and best practices there. Vickie Bell (18:38) Very good. some of the screening companies are really, good. And sometimes things slip through the cracks. I was at a property last week, and a young lady was being evicted for non -payment of rent. But before they could get to the eviction for the non -payment of rent, she and another resident began to have a brawl, per se. It was really a knock -down drag -out, but I'm going to call it a brawl. And after the attorney looked the information up so that the papers could be served, it comes to find out that one of the residents actually had a very negative status on her report. Ebony Hall (19:07) Mm. Vickie Bell (19:28) But when the company that ran the screening ran it, it showed no hits for criminal, and it showed no hits for sex offender. But there was a hit, and a big hit that was on it. So maybe AI, I'm not really a big fan of AI, because I think they get you here. But maybe AI will help with some of this. At any rate, what we have to keep in mind as managers and regionals Ebony Hall (19:42) goodness. Vickie Bell (19:58) and owners is that we're going to have to be real careful with our screening once we get the new HUD rules on application screening. So that might even make us have to go back and put some things in our tenant selection plan, even though we've just finished the tenant selection plan for HOTMA and for EIV. I'm sure we will be adding some other things. That goes into also the guidance, Ebony, on the blog that you did screening for the application for renting of housing and the credit bureaus and things of that nature. So we really have to look at your advertising of housing credit and other real estate related factors. Now one thing that AI probably will pick up on is one of the main things when you're advertising for rental property, you're supposed to have your fair housing equal opportunities and I'm sure that it's so high -tech that it'll pick up on those type things. So in your advertising where you're doing it for your affirmative fair housing marketing plans or you're just doing it because you have a lot of vacancies and you need to fill those vacancies, make sure that you look at your fair housing advertising. And I think that's all that I have for today. Other than I do want to mention that everybody should should get a copy of the White House blueprint for the renter's bill of rights and read that. If you have not read the tenant's bill of rights that the White House put out, you do need to get your copy and you do need to read it. We're also waiting for HUD to put out our... Residents rights and responsibility brochure that we're presently using you know It's supposed to be rewritten and I'm sure a lot of these things from this blueprint of Renter's bill of rights will be incorporated in there. There's one more thing that I want to say now HUD told us that you had to redo your tenant selection plan Ebony Hall (21:59) good. Vickie Bell (22:18) and you had to redo your EIV policies and procedures. I just want to encourage you to take a look at your house rules. for your existing residents to make sure that those house rules are in line with your tenant selection plan, your EIV policies, and now it looks like this application screening. So that your lease is enforced with your house rules. The house rules are automatic. addendum or attachment to your lease that we don't have yet. But we need you to make it as compatible with your lease and with your tenant selection plan as possible. Ebony Hall (22:58) Ha ha. Very good. Very good. All right, Vicki, how can everyone get in touch with you? Vickie Bell (23:13) do they have to? I was just kidding. can, everybody always emails me anyway, but you can reach me at vbell at navigatehousing .com. I'm sure Ebony will put it up on the screen and I look forward to answering any of your questions. I know we had promised you a session on questions and answers that other people, and we're working on that section, but this HOTMA and all of these new changes, have just kind of moved to the forefront. Ebony Hall (23:44) All right. Thank you, Vicki. Vickie Bell (23:46) I thank you, Ebony. I thank you guys out there. And you all stay tuned to another Tuesday Tip.