Feature

FTC Issues Screening Guidance for Apartment Owners

January 31, 2017    
The Fair Trade Commission (FTC) recently issued new guidance for owners who use background checks to screen tenants to help them comply with the federal Fair Credit Reporting Act (FCRA), which the FTC helps enforce. If part of your applicant screening process involves running a tenant background...
Income Calculations

Avoid Mistakes that Could Trigger Resident Exceeding Income Limits

January 31, 2017    
When recertifying households, you, as the site tax credit manager, probably know that households that go over-income don’t cease to qualify as tax credit units. To continue receiving tax credits on a unit whose household goes over-income, you must follow the available unit rule. The rule...
In the News

Comments about LIHTC Program During Senate Confirmation Hearings

January 31, 2017    
During Dr. Ben Carson’s confirmation hearing before the Senate Committee on Banking, Housing, & Urban Affairs, Carson spoke of harnessing the private sector to help those in poverty, and the Low Income Housing Tax Credit came up specifically during a conversation with Senator David Purdue...
In the News

Location Efficiency in the LIHTC Program

January 31, 2017    
A study recently published online in Housing Policy Debate titled “How Location Efficient is LIHTC? Measuring and Explaining State-Level Achievement” finds that recently built rental housing funded by low-income housing tax credits is more likely to be in “location-efficient...
In the News

Rep. Ellison Urges House Committee to Use Tax Reform to End Housing Poverty

January 31, 2017    
Representative Keith Ellison (D-MN) recently circulated a Dear Colleague letter urging the House Ways and Means Committee to use tax reform as an opportunity to end homelessness and housing poverty by keeping housing-related tax savings within housing. The letter asks representatives to join the...
In the News

Prospect of Comprehensive Tax Reform Disrupting LIHTC Equity Market

January 31, 2017    
The expectation that President Trump and Congress will cut corporate taxes is already affecting the pricing of LIHTCs for investors. The anticipation of comprehensive tax reform has made some LIHTC investors pause activity or make decisions based on the assumption of less equity per dollar of...
Feature

Ask Your State Housing Agency Three Questions About Its Compliance Monitoring Fees

December 21, 2016    
State housing agencies incur expenses to monitor your site throughout the 15 years of the compliance period. The IRS allows the agencies to pass some of these expenses on to owners as “compliance monitoring fees.” As the manager of a tax credit site, you’re responsible for making...
Compliance

How to Prevent Problems When Owners Forget to Elect Minimum Set-Aside

December 21, 2016    
Every tax credit site must meet and maintain a “minimum set-aside” throughout the 15-year compliance period to qualify for the tax credit program. To meet the set-aside, you must rent a certain percentage of the units in your building or site to qualified low-income households. All tax...
Dealing with State Housing Agency

IRS Clarifies Local Approval and Preference Regarding LIHTC Developments

December 21, 2016    
The IRS recently issued guidance on LIHTC developments and their compliance with fair housing rules at the local level. Notice 2016-77 relates to allocations of housing credits to projects located in a qualified census tract. A qualified census tract (QCT) is a geographic area defined by the Census...
In the News

FHFA Issues Final Rule on Duty to Serve Statute

December 21, 2016    
The Federal Housing Finance Agency (FHFA) recently released a final rule titled, “Enterprise Duty to Serve Underserved Markets.” The rule came about because the Housing and Economic Recovery Act of 2008 (HERA) amended the Federal Housing Enterprises Financial Safety and Soundness Act of...