Private Letter Rulings

Tax-Exempt Bond Issuer Can Amend Form 8038 After Making Clerical Error

August 30, 2012    

Facts: The developer of a low-income housing tax credit site and a bond issuer had agreed that the site would meet the 40-60 test. Under the 40-60 test, the developer reserves 40 percent of its units for those earning 60 percent or less of the area median gross income. The...

Waiving the Vacant Unit Rule During Renovation

May 28, 2012    

Facts: When a low-income housing tax credit project owner violates the Vacant Unit Rule, all vacant units previously occupied by qualified households lose their low-income status and stop generating tax credits for the owner. A developer of a multi-building site asked the IRS if the...

Excluding Garages from Eligible Basis Calculations, Gross Rent

May 28, 2012    

Facts: The “eligible basis” of a project is the cost of acquiring an existing building if there is one (but not the cost of the land), plus construction and other construction-related costs to complete the project. This number is then multiplied by the percentage of the units...