The “first-year fraction” is the “applicable fraction” for the first year of the compliance period. The applicable fraction is the percentage of a building that’s treated as low-income use and generally eligible for the tax credits as of the close of that year of...
The “net rent” is the amount a low-income household is charged to live in its unit. The “gross rent” is the net rent plus the utility allowance for the unit plus any non-optional fees.
Recently, the Government Accountability Office (GAO) released a new report, “Agencies Implemented Changes Enacted in 2008, but Project Data Collection Could Be Improved.” GAO conducted the study in accordance with a congressional requirement in the Housing and Economic Recovery Act...
On Oct. 16, the Social Security Administration (SSA) announced the 2013 cost of living adjustment (COLA) of 1.7 percent. The COLA increase will begin with benefits that more than 56 million Social Security beneficiaries receive in January 2013. Increased payments to more than 8 million...
The IRS recently announced that the amount used to calculate the low-income housing tax credit (LIHTC) ceiling in 2013 will be the greater of $2.25 multiplied by the state population or $2,590,000. The previous multiplier was $2.20 and a small state minimum of $2,525,000.
Earlier this year we reported on a physical inspection pilot program that was launched in six states in November 2011. Its goal is to test methods for developing a single, periodically scheduled physical inspection for jointly subsidized multifamily housing that can be performed by one housing...
Facts: The developer of a low-income housing tax credit site and a bond issuer had agreed that the site would meet the 40-60 test. Under the 40-60 test, the developer reserves 40 percent of its units for those earning 60 percent or less of the area median gross income. The...
The "allocation date" is the date your state housing agency allocated or committed tax credits to the owner for the site. The "placed-in-service" (PIS) date marks the first day the owner can begin qualifying units at the site as low-income units to claim its tax credits.
The "credit period" is the 10-year period during which the owner claims its tax credits. It began either the same taxable year your building was placed in service or the following year.
The "compliance period" is the 15-year period during which you must follow the tax...
The “Qualified Allocation Plan” (QAP) is a document your state housing agency publishes that contains the selection criteria it uses to award credits. Because the QAP describes how a state housing agency awards credits, it's mainly written for owners. But because your agency'...
Congressman Joe Baca of California recently introduced legislation aimed at increasing the number of senior housing sites built under the low-income housing tax credit program. His bill, H.R. 6295, would require states to provide additional points in their qualified allocation plans to...
A study entitled "What Can We Learn about the Low Income Housing Tax Credit Program by Looking at the Tenants?" was recently released by Katherine O’Regan, Associate Professor at NYU Wagner Graduate School and the Furman Center, and Keren Horn, Assistant Professor of Economics at...
