Tax Credit

  1. Home
  2. chevron_right
  3. Tax Credit
  4. (Page 2)

HUD Revision to Effective Date for 2015 DDA and QCT Designations

On October 26, 2017, HUD published a notice in the Federal Register, “Statutorily Mandated Designation of Difficult Development Areas and Qualified Census Tracts: Revision of Effective Date for 2015 Designations.”   This notice revises the effective date for designations of…

Reminder of Federal Disaster Rules Relating to Section 42

With all the natural disasters that have occurred recently (Harvey, Irma, Maria), it is worthwhile to review IRS guidance relative to Low-Income Housing Tax Credit properties located in affected areas.   Disaster Relief Rules   Revenue Procedure 2014-49   This…

Building a Case Against Unauthorized Occupants

Dealing with unauthorized occupants is a troublesome issue for many affordable housing managers, but due to the requirements of affordable housing programs such as Section 8 and the Low-Income Housing Tax Credit (LIHTC), knowing who is living in a unit…

Proposed Changes to LIHTC Program

On July 14, 2016, the “Affordable Housing Credit Improvement Act of 2016” was introduced in the Senate by Senators Cantwell, Hatch, and Wyden. It would make a number of changes to the Low-Income Housing Tax Credit (LIHTC) program, including (1)…

Small Area Fair Market Rents (SAFMRs)

Small Area Fair Market Rents (SAFMRs)   HUD publishes fair market rents for all areas of the nation. Public Housing Agencies (PHAs) use fair market rents as a guideline when determining payment standards for the Housing Choice Voucher (HCV) program.…

HUD Final Rule on VAWA – November 16, 2016

The U.S. Department of Housing & Urban Development (HUD) final rule regarding the implementation of housing protections authorized in the Violence Against Women Reauthorization Act of 2013 (VAWA) was published in the Federal Register on November 16, 2016.   In…

Compliance with HUD Live-in Aide Rules

Compliance with HUD Live-in Aide Rules   Allowing a Live-in Aide for a disabled person is both a HUD and fair housing requirement.   The definition of a live-in aide is a person who resides with one or more elderly…

Verification of Cash Payments

Verification of income from employment is usually just a matter of obtaining a written verification of income from the employer or the most recent four to six consecutive pay stubs from the applicant. However, in some cases, persons are paid…

GAO Issues Second Report on the LIHTC Program, May 2016

The United States Government Accountability Office (GAO) recently issued a report to the Senate Judiciary Committee titled “Low-Income Housing Tax Credit – Some Agency Practices Raise Concerns and IRS Could Improve Noncompliance Reporting and Data Collection.” This is the second…

Updated REAC Guidance – May 23, 2016

HUD has released a document titled “UPCS Guidance & Protocol Clarification.” This guidance was effective on May 23, 2016, and changes some of the prior guidance inspectors followed during REAC inspections. Primary changes/clarifications are as follows: HUD has clarified that…

Fair Housing Enforcement at LIHTC Properties

Fair Housing Enforcement at LIHTC Properties   A violation of fair housing law is reportable noncompliance for Low-Income Housing Tax Credit (LIHTC) properties. It is reported on Line 11h of IRS Form 8823, along with any other finding of noncompliance…

HUD Publishes 2016 Income Limits

On March 28, 2016, HUD published the 2016 income limits for HUD programs as well as for the Low-Income Housing Tax Credit and Tax-Exempt Bond programs. The limits for the LIHTC and Bond projects are published separately from the limits…

IRS Amends State LIHTC Monitoring Requirements

Amendments to LIHTC Monitoring Regulation, Revenue Procedure 2016-15   On February 25, 2016, the IRS published a proposed rule in the Federal Register that would amend the compliance monitoring duties of a state or local housing credit agency relative to…

HUD Changes REAC Protocol Regarding Units with Bedbugs

On January 21, 2016, HUD issued Inspector Notice No. 2016-01, “UPCS Inspector Protocol Bed Bug Infestation.”   The Notice was effective on February 1, 2016, and applies to all properties that are subject to UPCS physical inspections. In states that…

2016 HUD Imputed Interest Rate

HUD published Notice 2016-01 on January 19, 2016, announcing that the passbook savings rate effective February 1, 2016, will remain at .06%. The notice applies to all Project-Based Section 8 programs, Section 101 Rent Supplement Program, Section 202 Programs, Section…

Rent to Own vs. Seller Financing

The Difference Between “Seller Financing” and “Rent-to-Own”   Chapter Five of HUD Handbook 4350.3, Chg. 4 outlines various requirements relative to the determination of value and income for assets. One of the more unusual assets managers of affordable housing developments…

Tax Extenders Signed Into Law

Congress has passed and the President has signed the Protecting Americans from Tax Hikes (PATH) Act of 2016. The legislation includes a number of permanent (as opposed to temporary) extensions of expiring tax provisions. Included in these is a permanent…

Developer Fees – How They are Viewed by the IRS

  Developer fees represent payment for a developer’s services and are (at least partly) includable in eligible basis for a Low-Income Housing Tax Credit (LIHTC) project. There are three basic types of developer fees.   Turnkey Project Fee   The…
Menu