Complete Checklist Before Each Rental to Confirm Tax Credit Compliance

July 31, 2013    

Before you rent any unit at your tax credit site to a new household, it’s important to confirm that the rental will comply with the tax credit law. If your rental of a unit won’t comply, the owner’s credits for that unit may be at risk. And if the unit is one you must count to...

Send Letter to Households to Discourage “Transient Unit Rule” Violations

February 27, 2013    

As a tax credit manager, you probably know that you can violate the “transient unit rule” if you rent units to low-income households on a transient basis. The IRS presumes that you’re complying with the rule if your initial leases with households are for a term of at least six...

Know When and How to Use the HUD Handbook at a Tax Credit Site

November 27, 2012    


To calculate household income at tax credit sites, you’re required to follow the rules set out in HUD Handbook 4350.3 (Occupancy Requirements of Subsidized Multifamily Housing Programs). But because the Handbook was written for assisted sites, applying it to a tax credit site...

Document Efforts to Fix Three Common Household File Mistakes Before You’re Audited

November 5, 2012    

When you take over a site, there’s a good chance you’ll find paperwork mistakes made by prior managers. Missing income certifications, spotty income documentation, and utility allowance errors are common. Even though you didn’t make them, you mustn’t ignore these...

How to Ensure Compliance with Federal Accessibility Laws

March 26, 2012    

In the past few years the Justice Department has brought increased scrutiny to the issue of accessibility. For example, in September 2010, the Justice Department published revised regulations for Titles II and III of the Americans with Disabilities Act of 1990 (ADA) in the Federal Register...

Follow Five Rules to Avoid Fair Housing Problems in New Media

March 25, 2012    

As site owners and managers increasingly direct more of their marketing focus online in an effort to attract new prospects, engage current residents to encourage renewals and generate referrals, and recruit potential employees, there are fair housing considerations they need to be mindful of....

How to Control Business Use of Tax Credit Units

February 9, 2012    

According to U.S. Census data released in June 2011, more than half—51.6 percent—of all the country's businesses that responded to the 2007 Survey of Business Owners were operated primarily within homes or other noncommercial spaces. And because the data was compiled before the...

Five Compliance Differences Between Managing Mixed-Income and 100 Percent Buildings

December 15, 2011    

Every tax credit building you manage is either a “mixed-income building” or a “100 percent building.” If it's a mixed-income building, you can rent units to both low-income and market-rate households. However, if your building is a 100 percent building—or, in...

How to Use the Averaging Convention to Determine First-Year Tax Credits

November 8, 2011    

If you're managing a tax credit site in the first year of its credit period, it's important to know that the owner may not be able to claim all the credits it expects to for that year. According to IRC Section 42(f)(2), an owner isn't allowed to take the entire credit a building is...

Avoid Tax Credit Recapture When Permitting Employee-Occupied Units

July 17, 2011    

Many tax credit sites permit a resident manager, superintendent, or similar site-level employee to occupy a unit. This arrangement may raise a red flag to state auditors if the unit is not being used as permitted in the original allocation agreement with the state. Operating in the dark with...

Prepare to Adopt HUD's New Income Limits

June 9, 2011    
You have 45 days to begin using them to certify and recertify low-income households at your tax credit site.

How to Comply with Minimum Set-Aside Requirements

June 9, 2011    

For a building or site to qualify for the tax credit program, an owner must rent at least a certain percentage of the units to qualified low-income households. These households can earn no more than a specified amount of income. This requirement is called the “minimum set-aside,” and...