Quick Links to Commonly Referenced Resources
Multifamily housing developments that participate in affordable housing programs administered by the New York State Housing Finance Agency must meet certain federal and/or state requirements, including site maintenance and tenant eligibility. When the housing is occupied, owners and managers are responsible for ensuring that developments meet all federal and state requirements. Depending on the program, the Agency's role will vary from regulator to lender and asset manager. In all cases, the Agency monitors and reports on compliance for the specified funding source. The Agency's Housing Portfolio Management Unit is responsible for the overall monitoring of the multifamily loan portfolio and program compliance.
Our goal is to make compliance as straightforward as possible for you. Please use the links provided to learn more about the funding programs and their policies and procedures, income limits, and reporting requirements to assist you in maintaining compliance and making your affordable housing developments successful.
Properties that receive federal and/or state financing or assistance must meet certain criteria to continue receiving benefits. HFA's Housing Portfolio Management Unit works with owners and managers to ensure that federally and state-funded housing is safe and affordable, and that tenants are eligible for residency, based on their incomes and other program requirements.
The descriptions below will provide you with a brief review of the main programs we oversee and the requirements for each one.
The New York State Housing Finance Agency monitors developments that have received Housing Tax Credits for compliance with Section 42 of the Internal Revenue Code (the Code). Monitoring, including site visits by HFA staff, occurs periodically to ensure that all tax credit units provide safe, decent, affordable housing and that eligible renters occupy the units.
Major compliance issues for federal and state credits:
Units must be affordable to and occupied by households at 60% or less of area median income. Lower income targeting may apply to specific properties, based on individual funding agreements.
Unit activity must be reported regularly using the Monthly Project Occupancy Report (MPOC).
Annual Owner's Certification of Continuing Program Compliance and the Annual Income Qualified Unit Report (Open in Excel).
Households made up entirely of full-time students may not qualify.
Mixed income properties require special tracking to comply with the 140% rule, next available unit rule and the vacant unit rule.
Additional requirements may apply, based on the state Qualified Allocation Plan for the year a development's housing credits were allocated.
The New York State Housing Finance Agency monitors projects financed with the following types of agency-issued bonds:
Monitoring ensures that units financed with private activity bonds provide safe, decent, and affordable housing and that the units are occupied by eligible households.
Monitoring of units financed with 501(c) bonds ensures that units provide safe and decent housing and that the units are occupied by eligible households, based on income. The New York State Housing Finance Agency monitors these units to protect the tax-exempt status of the bonds.
Monitoring for the "80/20" program ensures compliance with New York State Housing Finance Agency rules, Regulatory and Deed Restrictions, and the IRS Code. The Agency monitors these units to protect the tax-exempt status of the bonds.
HFA financed developments receive periodic appropriations from the New York State Housing Trust Fund and the Empire Housing Fund Loan program to supplement the financing of affordable housing. Normally, Housing Trust Fund loans are granted in combination with federal Housing Tax Credits. The Agency monitors the Housing Trust Fund and Empire loan programs for properties receiving money from it for compliance with state regulations.
Properties receiving Housing Trust Fund loans must meet additional reserve account requirements and withdrawal procedures. The New York State Housing Finance Agency must approve all rent increases in writing. Properties must submit CPA audited financial statements annually.
The New York State Housing Finance Agency serves as Contract Administrator for U.S. Department of Housing and Urban Development (HUD) on a portfolio of properties with project-based Section 8 rental assistance. The Agency has direct responsibility for the day-to-day asset management requirements.
Last updated: 01/23/15