Feature Articles

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...

Use Inspection Checklist to Reduce Risk of Preventable Fires

November 30, 2017    

Although you may not be able to prevent many resident-caused fires, other types of apartment community fires are easily preventable. Owners or their maintenance staff should conduct monthly fire inspections of areas and items that are potential fire hazards. If your maintenance staff conducts...

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...

Keep Good Marketing Records to Prove Compliance, Protect Against Liability

November 13, 2017    

In the November 2017 issue of the Insider, we discussed the vacant unit rule and its requirement to make reasonable attempts to rent vacant units (see “Follow Five Dos & Don...

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...

Confirm Key Owner Elections by Reviewing IRS Form 8609

October 30, 2017    

As a tax credit manager, you need to know about certain elections that owners make when they file Form 8609 with the IRS to keep your site in compliance with the tax credit program’s requirements. But because owners complete this form, you may not get to see it. As a result, you may...

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...

Follow Five Dos & Don'ts When Calculating Income of Student Household Members

September 28, 2017    

If you have part-time or full-time students living at your tax credit site, it’s important to know how to calculate their income properly. However, be mindful that all student eligibility requirements are met for your LIHTC site before you consider student income in a household. In other...

Overview of IRS' LIHTC Disaster Relief Provisions

September 28, 2017    

When the President declares a major disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, LIHTC sites are afforded temporary relief from certain requirements of the LIHTC program. As a result of Hurricanes Maria, Irma, and Harvey, major disaster declarations have...

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...

Avoid Eight Mistakes that Disqualify Low-Income Units

August 30, 2017    

To qualify your site for the tax credit program, you must lease up enough units to qualified low-income households. But those units don’t automatically stay low-income for the rest of the compliance period. As a tax credit site’s manager, you must follow rules to make sure units stay...

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-...