Understanding Compliance Requirements of the LIHTC and Tax-Exempt Bond Programs
The owner of a tax credit site you manage may tell you that the site also gets bonds—that is, participates in the tax-exempt bond program. Owners who get approved for these bonds for their site enjoy a tax-exempt status, which means they get lower interest rates on mortgages. They also don’t have to compete with other owners in your state for tax credits. If you manage such a site, you must know how to comply with both programs’ requirements. If you’re not sure what to do, you risk jeopardizing both the owner’s tax credits and its tax-exempt status.