Oct. 17, 2024

The Iowa Finance Authority (IFA) and Costello Compliance are pleased to announce the release of the updated Compliance Manual and required forms, incorporating HOTMA, NSPIRE and Average Income Test (AIT). You can access the manual and forms below.

Please be aware that HUD has extended the compliance date for the programs outlined in Section 4 of Notice H 2023-10 to July 1, 2025. This extension does not apply to the HOME and NHTF programs. IFA strongly encourages all LIHTC, HOME and NHTF projects to begin implementing the new forms and manual as soon as possible.

We understand that adjustments will take time for both software developers and onsite staff. Therefore, IFA will refrain from issuing an 8823 or state notice regarding HOTMA-related issues before July 1, 2025. This timeline may change if further guidance is provided by HUD or the IRS. Additionally, IFA will offer updates once NSPIRE is adopted in 2025.

Should you have any questions, please contact your compliance officer. Effective communication will be essential to successfully implement these important changes in your projects. IFA also recommends professional training for staff responsible for reviewing tenant income eligibility. We appreciate your hard work and look forward to supporting you during this critical period of project compliance.

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