The Federal Register (FR) Notice provides Administrative Guidelines to qualified Housing Credit Agencies (HCAs), as defined under Section 42 of the Internal Revenue Code of 1986 (IRC), performing subsidy layering reviews (SLRs) in accordance with the requirements of Section 2835(a)(1)(M)(i) of the Housing and Economic Recovery Act of 2008 (HERA). ?In certain instances, as described in the FR Notice, HUD will follow these ?guidelines ?in implementing subsidy layering reviews to satisfy the requirements of Section 102(d) of the Department of Housing and Urban Development Reform Act of 1989 (HUD Reform Act or HRA). ?The requirements in this Notice, which implement the requirements of Section 2835(a)(1)(M)(i) of HERA, do not supersede the SLR requirements of other Federal programs.
- Section 2835 (a)(1)(F) of HERA provides that for project-based voucher housing assistance payments (HAP) contracts for existing housing, a subsidy layering review in accordance with section 102(d) of the HRA shall not be required.
- Under HERA, when project-based voucher assistance is proposed for newly constructed and rehabilitated structures, subsidy layering reviews may be satisfied if the applicable State or local agency has conducted such a review.
- The FR-5417-N-02 sets the guidelines for Housing Credit Agencies(HCAs), as defined under Section 42 of the Internal Revenue Code of 1986, to conduct subsidy layering reviews for the purpose of ensuring that the combination of assistance under the Section 8 Project-Based Voucher Program with other Federal, State, or Local assistance does not result in excessive compensation; therefore, authorized HCAs may conduct the SLRs only when LIHTCs are involved.? (The list of authorized HCAs to perform SLRs are posted in the HUD website)