An owner may hire you to manage tax credit sites in a different state from the one where your current tax credit sites are located. You may think that because the tax credit program is a federal program, you can simply apply the same rules you’re currently complying with to the site in the...
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...
Suppose people showed up at your management office with official-looking badges and asked to see a copy of a resident’s file. Chances are you may not have encountered a situation like this before. Many well-meaning managers would probably hand over the file, especially if the agents said...
An owner seeking to evict a resident can’t begin an eviction lawsuit without first legally terminating the tenancy. This means giving the resident written notice, as specified in the state’s termination statute. If the tenant doesn’t move or fix the issue, for example, by...
To calculate household income for determining whether a household is eligible at a tax credit site, you’re required to follow the rules set out in HUD Handbook 4350.3. Sections 1 and 3 of Chapter 5 of the HUD Handbook (Determining Income and Calculating Rent) set out the rules you must...
Most tax credit managers know that state housing agencies must regularly inspect sites for compliance with the tax credit program. The agencies inspect units to make sure they’re suitable for occupancy and look at household files to make sure they’re accurate and complete. But many...
With certain exceptions, households made up entirely of full-time students aren’t eligible to occupy low-income units at a tax credit site. So when you screen applicants, it’s essential to ask them questions to determine whether you can rent to them without violating this rule, known...
The Fair Housing Act (FHA) prohibits housing discrimination because of race, color, religion, sex, national origin, familial status, or disability. The law targets discriminatory practices by making it unlawful to deny housing—or discriminate in the terms and conditions of the rental...
The low-income housing tax credit program is administered at the state level by state housing finance agencies with each state getting a fixed allocation of credits based on its population. The state housing agency has wide discretion in determining which projects to award credits, and...
To help the owner of your site determine how many credits it may claim for a building, you must first calculate an “applicable fraction” for each month of the first year of the building’s compliance period. The applicable fraction is the percentage of a building dedicated to...
There’s more at stake when you approve applicants for units in tax credit buildings than when you approve applicants for other assisted sites. That’s because a move-in mistake on a tax credit site can result in an immediate loss of tax credit dollars for owners, possibly jeopardizing...
