Make Sure PLR Request Contains Required Information

April 27, 2018    

A private letter ruling (PLR) is a written response issued by the IRS to an owner or taxpayer when the owner asks a question about the tax effects of its acts or transactions. The questions posed by site owners usually entail uncertainty about how to handle a situation and the need for guidance...

Follow Three Dos & Don'ts on Setting House Rules Affecting Children

March 29, 2018    

Like many tax credit managers, you may have considered setting house rules aimed specifically at children. Your motive may be concern for children’s safety around specific hazards like swimming pools. Or if you’ve been getting noise complaints from residents or have recently found...

Understanding the 'Suitable for Occupancy' Requirement

February 28, 2018    

As an owner or manager, it’s important to keep your designated low-income units qualified as such under tax credit rules. Unless a site is deep rent skewed, a LIHTC site must have either 20 percent of the units rent-restricted and occupied by a household with income at or below 50 percent...

Follow Six Dos & Don’ts When Counting Household Assets

January 31, 2018    

When calculating household income at initial certifications and at annual recertifications, if you have a mixed-income site, you must properly count the household’s assets. But this can be tricky if you’re not familiar with HUD’s rules.

If you’re not sure how to...

Four Common Misconceptions About the Applicable Fraction

December 28, 2017    

The applicable fraction is the percentage of rental units in a building that qualify as low-income units. Specifically, under Internal Revenue Code (IRC) §42(c)(1)(B), the applicable fraction is the smaller of the unit fraction or the floor space fraction. IRC §42(c)(1)(C) defines...

Perform End-of-Year Review to Verify Compliance

November 30, 2017    

As the holiday season approaches, we know that audit season isn’t far behind. Taking steps now to review management practices, household files, and preparing annual forms will help ensure a strong start to the upcoming year and an efficient audit process.

The following is a list of...

House GOP Tax Reform Bill Retains LIHTC, Repeals Multifamily Housing Bonds

November 13, 2017    

On Nov. 2, House Republicans unveiled a sweeping tax reform legislation called the Tax Cuts and Jobs Act (H.R. 1). It was introduced by Ways and Means Committee Chairman Kevin Brady. Although its provisions are generally in line with the House Republican Blueprint for Tax Reform released in June...

Follow Five Dos & Don'ts to Comply with the Vacant Unit Rule

October 30, 2017    

When a qualified low-income household moves out of a unit at your tax credit site, you might not have another qualified household immediately available to move into the unit. And finding qualified households for your site can be difficult and take time. For these reasons, you may have units that...

Use Lease Clause When Households Violate Student Rule Mid-Lease

September 28, 2017    

At this time of year, as the academic year starts, it may be a good time to review student eligibility restrictions for the LIHTC program. You probably know that, in general, you can’t rent a low-income unit at your tax credit site to a household that’s made up of full-time students...

Choose Among Four Unit Options for Site’s Model Unit

August 30, 2017    

If you’re like many tax credit managers, you might want to set aside a model unit that you can show to prospects to help “sell” your site. But before you set aside any unit at your tax credit site for this purpose, you must consider what effect your action may have on your...

Follow Seven Tips When Recertifying Households at Mixed-Income Sites

July 31, 2017    

Generally speaking, if you manage a mixed-income site, you and your staff must recertify all low-income households at the site each year. Failing to meet recertification requirements is a leading cause of noncompliance that can cost the owner its tax credits. But recertification can be a time-...

Implementing Integrated Pest Management

July 14, 2017    

By Carolyn E. Zezima, Esq.

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