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.

How to Avoid Four Common Timing Mistakes During the Verification Process

June 30, 2017    

To calculate and verify household income at tax credit sites, owners and managers are required to follow the rules set out in HUD Handbook 4350.3 (Occupancy Requirements of Subsidized Multifamily Housing Programs). Specifically, sections 1 and 3 of Chapter 5 (Determining Income and Calculating...

How to Verify Guarantor's Expected Rent Payments During Certification

May 31, 2017    

Some tax credit sites may require a household to get a third party to sign a lease guaranty if its ability to pay the rent is questionable. In a guaranty, a third party (known as a guarantor) becomes legally responsible for the rent in case the household doesn’t pay. And sometimes, a...

Check Leases for Eight Tax Credit Protections and Privileges

April 27, 2017    

Before you sign a lease giving a household the right to occupy one of your low-income units at a restricted rent, you’ll want to be sure that the lease and any addenda give you the authority you need to keep the site in compliance. For instance, if your site isn’t 100 percent low-...

of 11Next