Section 504 of the Rehabilitation Act of 1973 bans disability-based discrimination in any program or activity that receives federal financial assistance from any federal agency (including HUD) or in any programs conducted by federal agencies. Many tax credit managers haven’t heard of this...
As a tax credit manager, meeting your site’s minimum set-aside is the most important goal. If you meet the set-aside, the owner of your site will be entitled to claim its tax credits. If you don’t meet the set-aside, your site won’t qualify for the tax credit program, which...
A key aspect of your job as a tax credit manager is performing calculations. For instance, you must perform calculations to correctly determine whether a household is eligible to occupy a low-income unit, how much rent you can charge, and how many low-income units you need to set aside at your...
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.
In the Fall 2016 Special Issue, we discussed how a site owner may comply with first-year certification requirements under Internal Revenue Code (IRC) Section 42(l)(1). Making the certification involves Form 8609, Low-Income Housing Credit Allocation and Certification. The agency executes Part I...
At some tax credit sites, setting up a household file may mean randomly tossing all the paperwork concerning a household into a folder. Or household files may be organized in a way that’s understood by only one or two staffers. But practices like these can cost the owner its tax credits....
As the end of the calendar year nears, your site’s annual certification to your state housing agency is approaching. Under Treasury Regulation Section 1.42-5(c)(1), owners are required to certify to the state agency that allocated the credit at least annually that, for the preceding 12-...
In addition to annual certifications, owners are required to complete a “First-Year Certification” under Internal Revenue Code (IRC) Section 42(l)(1). The certification is made to identify specific information needed for the administration of the program and document specific...
You probably know that when a low-income household’s income exceeds 140 percent of the income limit (or 170 percent in the case of deep rent-skewed units), you must follow the Next Available Unit (NAU) rule to make sure the owner can continue claiming credits for the over-income unit. But...
In the May issue, we discussed HUD’s new guidance on criminal background checks. The new guidelines spell out how HUD will evaluate fair housing complaints in cases where a site refuses to rent or renew a lease based on an individual’s criminal history. The new guidance has brought...
From time to time, you or a staff member may get a rent check from someone other than the resident named on the lease. If you deposit the check and it turns out that the resident is illegally subletting his unit to the person who sent the rent check, you could run into problems. A court may rule...
The tax credit law allows low-income units to remain qualified even when a household goes over-income. But to maintain the unit’s low-income status, when a household’s income exceeds 140 percent of the income limit (or 170 percent in deep rent-skewed units), you must follow the next...
