In the News
December 21, 2016
A report recently published in the Journal of Housing Economics entitled “Poverty Concentration and the Low Income Housing Tax Credit: Effects of Siting and Tenant Composition” found that the LIHTC program could play a critical role in shaping the distribution of poverty in America....
Feature
November 29, 2016
IRS auditors may flag sites for further review based on state agencies’ noncompliance reports. The owner’s tax returns and IRS Form 8823 noncompliance reports and other information are initially evaluated. If it’s determined that an audit is needed, an IRS auditor will formally...
Compliance
November 29, 2016
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 and...
Compliance
November 29, 2016
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. When...
In the News
November 29, 2016
Trulia, an online residential real estate site, recently released a study in a blog post entitled, “There Doesn’t Go the Neighborhood: Low-Income Housing Has No Impact on Nearby Home Values.” The study found that low-income housing funded with LIHTCs did not impact the value of...
In the News
November 29, 2016
The Social Security Administration recently announced that monthly Social Security and Supplemental Security Income (SSI) benefits for more than 65 million Americans will increase 0.3 percent in 2017. The 0.3 percent cost-of-living adjustment (COLA) will begin to Social Security beneficiaries in...
In the News
November 29, 2016
HUD recently published in the Federal Register the final rule implementing housing provisions under the Violence Against Women Reauthorization Act of 2013 (VAWA) as it applies to HUD programs. The rule codifies VAWA core protections across covered HUD programs to ensure individuals are not denied...
Feature
November 7, 2016
The Low Income Housing Tax Credit (LIHTC) program is the country’s most extensive affordable housing program. The program was added to Section 42 of the Internal Revenue Code (IRC) in 1986 to provide private owners with an incentive to create and maintain affordable housing. The LIHTC program...
Compliance
November 7, 2016
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-month...
Compliance
November 7, 2016
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 elections...