Feature Articles

Feature Articles

Use Green Landscaping Practices to Save Money and Resources

November 13, 2018    

By Carolyn Zezima

Q&A on Tax Credit Site Leases

October 30, 2018    

When managing a tax credit site, you may be confused about what you can and can’t do when it comes to creating a lease for your low-income households. For instance, you may be unsure whether you can give households a one-month lease without putting your site owner’s tax credits at...

Conduct Detailed Interview of Households Claiming Zero Income

October 30, 2018    

Under Treasury Regulations 1.42-5(b)(1)(vii), LIHTC site owners must document each low-income tenant’s income certification with documents such as federal income tax returns and W-2 forms. The regulation makes an exception for tenants receiving housing assistance payments under Section 8....

Prepare for Winter with Fall 'To Do' List

October 30, 2018    

Each season of the year presents a different set of maintenance challenges for apartment building management. Winter represents the harshest season of wear and tear on your building. Some fall maintenance tasks are obvious—such as closing the swimming pool and draining the in-ground...

Compliance Basics of Acquisition and Rehab Credits

September 27, 2018    

The LIHTC program is an indirect federal subsidy used to finance the construction and rehabilitation of low-income affordable rental housing. LIHTC sites receive funding either as new construction or acquisition rehab. A recently published U.S. Government Accountability Office report on LIHTC...

How to Verify Income of Newly Self-Employed Ride-Hailing Service Drivers

September 27, 2018    

Explosive growth in ride-hailing services such as Uber and Lyft are attracting more and more drivers. These drivers earn extra income with the benefit of working flexible hours. According to recent research by JPMorgan Chase Institute, from late 2013 to this spring, the number of households...

How to Track Applicable Fraction to Help Avoid Tax Credit Loss

August 30, 2018    

Keeping each building’s applicable fraction on target is an essential part of a tax credit manager’s job. The applicable fraction is the percentage of a building’s units rented to low-income households. It comes into play when you calculate the building’s qualified basis...

Use Checklist to Review Household Files for Completeness

July 30, 2018    

It’s smart management practice to keep your household files up-to-date and complete all the time. Because LIHTC projects will be reviewed for compliance by the state and may be audited by the IRS, complete, well-organized files are very important.

Essential Addendums and Clauses to Include in Your LIHTC Lease

July 11, 2018    

When someone agrees to rent or lease an apartment, he signs a lease or rental agreement outlining the terms of the agreement. It’s a legally binding contract between the tenant and the owner that details the rights and responsibilities of each party. Unlike a typical market-rate apartment...

States' Preliminary Implementations of the Income-Averaging Option for Minimum Set-Asides

June 28, 2018    

The Consolidated Appropriations Act of 2018 established income averaging as a third minimum set-aside election, and this option happens to be one of the most significant changes to the LIHTC program in recent years. Every tax credit site must meet and maintain a minimum set-aside throughout the...

How to Fix Four Initial Certification Mistakes

May 24, 2018    

When performing the initial certification for a low-income household at your tax credit site, it’s easy to make mistakes. These mistakes can jeopardize the owner’s tax credits if your state housing agency finds them during an audit.

Keep Detailed Maintenance Records to Defend Against Mold Lawsuits

May 24, 2018    

A recent lawsuit filed on behalf of 400,000 residents against the New York City Housing Authority (NYCHA), the nation’s largest public housing authority, asked the judge to appoint an independent monitor to oversee operations because the agency failed to provide tenants with heat and hot...