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COVID-19 IRS Extension for Qualifying Units (Notices 2021-12 and 2021-17)- Industry Positions on Year Two Credits

May 22, 2021

In January 2021, the IRS released Notice 2021-12, extending various COVID-19 relief provisions for the Low-Income Housing Tax Credit (LIHTC) and Tax-Exempt Bond programs. The service also added relief with regard to deadlines for satisfying occupancy obligations. Section IV.E of…

Key Improvements to LIHTC Program Possible for 2021

May 15, 2021

An updated Affordable Housing Credit Improvement Act (AHCIA) has been introduced in the House and Senate with bipartisan support. The House and Senate bills are identical and are a continuation of an effort that began with the initial introduction of…

HUD Confirms Income Exclusions

April 29, 2021

Unemployment Benefits & Child Tax Credit The 2021 Consolidated Appropriations Act (2021 Appropriations) and the American Rescue Plan of 2021 (ARP) amended three provisions to strengthen and extend unemployment benefits in the CARES Act and the ARP provides a monthly…

A. J. Johnson to Offer Webinar on LIHTC Acquisition/Rehab Issues

April 25, 2021

A. J. Johnson will be conducting a webinar on May 6, 2021, on Acquisition/Rehab of Low-Income Housing Tax Credit Projects – Critical Issues for Success. The Webinar will be held from 1:00 PM to 3:00 PM Eastern time. This two-hour…

HCCP Online Exam Now Being Offered By A. J. Johnson Consulting Services – Correction

March 13, 2021

Following is a correction to an earlier posted article on the HCCP online exam. Starting on March 8, 2021, A. J. Johnson Consulting Services will be offering the online version of the Housing Credit Certified Professional (HCCP) exam. Unlike the…

HCCP Online Exam Now Being Offered By A. J. Johnson Consulting Services

March 6, 2021

Starting on March 8, 2021, A. J. Johnson Consulting Services will be offering the online version of the Housing Credit Certified Professional (HCCP) exam. Unlike the in-person exam, the online exam will be offered on an ongoing basis and need…

IRS Extends COVID-19 Relief

January 16, 2021

In response to the COVID-19 pandemic, the IRS issued Notice 2020-53 in July 2020. This Notice provided temporary relief from certain requirements under §42 of the Internal Revenue Code and §§142(d) and 147(d) of the Code for properties with tax-exempt…

Fixed Four Percent Credit – When Does it Apply?

January 3, 2021

The COVID-19 relief legislation that was recently signed into law included a provision fixing the four percent LIHTC at an actual four percent rate. This floor applies both to properties with tax-exempt bonds and acquisition credits. However, there are transition…

CORRECTION – IRS Notice of Proposed Rulemaking on Average Income Test

November 2, 2020

Thank God my clients read better than I type. One of my more astute readers noticed a pretty significant typo in the example in #1 below. I have corrected the error – I hope it did not create too much…

IRS Notice of Proposed Rulemaking on Average Income Test

November 1, 2020

On October 30, the IRS published a Notice of Proposed Rulemaking in the Federal Register. This Notice concerns the LIHTC Average Income Test and outlines the current intention of the IRS with regard to certain rules governing the Average Income…

A. J. Johnson to Present Webinar on Complying with the Requirements of the IRS on Tax Credit Properties

October 17, 2020

A. J. Johnson will be conducting a webinar on October 27, 2020, on Meeting IRS Requirements for the Low-Income Housing Tax Credit Program. The Webinar will be held from 9 AM to 3:30 PM Eastern time. One of the key…

Recent Court Decision Confirms that a Right of First Refusal is Not an Option to Purchase

October 5, 2020

A recent New York court case has affirmed that a non-profit’s Right of First Refusal (“ROFR”) is not an option to purchase a Low-Income Housing Tax Credit (LIHTC) property. The Case Riseboro Community Partnership, Inc., formerly known as Ridgewood Bushwick…

Claiming Credit Without an 8609 – Impact of the Centralized Partnership Audit Regime

September 5, 2020

The Bipartisan Budget Act of 2015 created the Centralized Partnership Audit Regime (CPAR). This created a new process for amending or making changes to certain federal partnership tax returns for effective years beginning after December 31, 2017. As a result,…

A. J. Johnson Partnering with Mid-Atlantic AHMA – Webinar on Preparing Affordable Housing Projects for Physical Inspections

August 16, 2020

A. J. Johnson is partnering with the Mid-Atlantic Affordable Housing Management Association (Mid-Atlantic AHMA) in offering a webinar on Preparing Affordable Housing Properties for Agency Required Physical Inspections. The webinar will be live and will be held on August 26…

Despite Recent HUD Guidance, States Must Still Update Qualified Allocation Plans to Reflect IRS Monitoring Regulation

August 2, 2020

In February 2019, the IRS published a final regulation on how State Housing Finance Agencies (HFAs) must monitor for compliance with the requirements of the Low-Income Housing Tax Credit Program (LIHTC). On July 1, 2020, the Service released a proposed…

IRS Provides Clarification on COVID-19 Issues

July 24, 2020

The IRS recently issued guidance relating to COVID-19 relief for LIHTC projects (July 1). The National Council of State Housing Agencies (NCSHA) requested clarification from the IRS on two of the provisions in the IRS Notice (Notice 2020-53): (1) suspension…

IRS Releases Major LIHTC Program Guidance – July 1, 2020

July 1, 2020

On July 1, 2020, the IRS released an advanced copy of proposed regulations concerning low-income housing tax credit (LIHTC) housing finance agency (HFA) monitoring requirements and Notice 2020-53, which provides COVID-19 related relief to issuers, owners, operators, and tenants of…

Procedures for Requesting a Private Letter Ruling

May 23, 2020

A Private Letter Ruling (PLR) is a written decision by the Internal Revenue Service (IRS) that is sent in response to a taxpayer’s request for guidance on unusual circumstances or complex questions about their specific tax situation. For certain transactions…

IRS Extends Deadlines for Several LIHTC Requirements Due to COVID-19

April 18, 2020

The IRS has issued Notice 2020-23 extending the deadline to July 15, 2020 for any tax action that was due to be performed from April 1, 2020 through July 15, 2020. The actions for which the extended deadline applies were…

HUD Publishes 2019 Income Limits for Average Income Minimum Set-Aside

February 22, 2020

The Department of Housing & Urban Development (HUD) has published the income limits to be used by Low-Income Housing Tax Credit properties for which the Average Income (AI) Minimum Set-Aside is elected. As expected, the AI limits use the HUD…

Alabama Court Decision Requires that Restrictions on LIHTC Properties Must be Considered in Property Tax Assessments

February 16, 2020

On December 13, 2019, an Alabama Circuit Court ruled that use restrictions for Low-Income Housing Tax Credit (and other types of affordable housing) must be considered when assessing the value of properties for real estate tax purposes. The case is…

Special Needs Trust- Determination of Annual Income

February 1, 2020

Managers of affordable housing properties (e.g., Section 8 or LIHTC) must consider whether a household has assets that may contribute to the income of the household. Common assets include cash-on-hand, bank accounts, and retirement accounts. A less common type of…

IRS Issues Ruling on Determination of Income Limits for Average Income Minimum Set-Aside

January 31, 2020

On January 29, 2020, the IRS released Revenue Ruling 2020-4. This ruling outlines the requirements for determining the designated income limits under the Average Income (AI) Minimum Set-Aside. The Conference committee report for the Tax Reform Act of 1986 stated…

What Affordable Housing Managers Need to Know About Changes in Retirement Laws

January 5, 2020

Just before adjourning for the Christmas/New Year holiday, Congress included, and the President signed, the Setting Every Community Up for Retirement Enhancement (SECURE) Act in the federal government spending bill. This action provides the most significant changes in retirement law…

Principal or Primary Residence Issue for LIHTC Housing

November 9, 2019

Virtually all affordable housing programs, including Section 8 and the Low-Income Housing Tax Credit (LIHTC), require that the lessees of the unit use apartments being rented under the applicable program as a “principal residence”. Agencies have not provided a lot…

NCSHA Provides Updated LIHTC Compliance Forms

October 9, 2019

The National Council for State Housing Agencies (NCSHA) has released updated model compliance forms for housing credit developments. Virtually all Housing Credit agencies (HCAs) require Housing Credit development owners to use specific forms in their compliance reporting. NCSHA, in collaboration…

Information to Obtain When Assuming Management of a LIHTC Property

September 15, 2019

When assuming management of a Low-Income Housing Tax Credit (LIHTC) property during the 15-year compliance period, there is critical information the new agent must have. The following list provides a good starting point for the information to obtain when assuming…

Determining the Income of LIHTC Applicants and Residents

September 14, 2019

The determination of income is a primary requirement when determining the eligibility of applicants and residents at Low-Income Housing Tax Credit (LIHTC) Properties. While individual Housing Finance Agencies (HFAs) have their own requirements relating to the determination of income, there…

Dealing with Resident Owned Real Estate at Affordable Housing Properties

September 7, 2019

When determining the income of a household at an affordable housing complex with income limitations, the valuation of resident owned assets and the calculation of real or possible income from those assets is critical to the process. Assets are items…

Rental Application/Lease/Lease Riders – Critical LIHTC Documents

August 31, 2019

It is important that early in the application process, prospects be advised of the applicable income limits and student requirements for occupancy in a Low-Income Housing Tax Credit (LIHTC) property. Management should explain that the total gross income of all…

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