An owner can claim only the credits allocated to him by his state housing credit agency. Suppose an owner is in the process of leasing up a brand-new 80 percent tax credit building and the marketing department brings in nine qualified low-income households. Eight of the 10 units must be rented...
If your community room is part of the site's basis for tax credit calculation purposes, meaning that the owner counts it as part of the property for which the state has awarded tax credits, don't permit commercial use of this room. To permit this type of use would reduce the amount of...
Don't round down the number of units you must rent to qualified low-income households to meet your minimum set-aside, warns A.J. Johnson, president of A.J. Johnson Consulting Services. Rounding down may seem like an attractive option because it leaves you free to charge market-rate rents for...
The benefits of the low-income housing tax credit (LIHTC) program extend beyond the families occupying the approximately 200 affordable housing units that are financed each year in New Hampshire, says a recent study by the New Hampshire Finance Housing Authority. According to the report, the...
QMy company is about to manage a new tax credit site. We heard that tax credit managers can choose to base the rent for a low-income unit on either the size of the household that occupies the unit or the number of bedrooms in the unit. Is this true?...
Congressman Christopher Gibson and Tom Reed of New York recently introduced H.R. 3769, the Irene and Lee Tax Relief Storm Recovery Act. If the bill passes, states that were hit last year by Hurricane Irene or Tropical Storm Lee may receive disaster rebuilding assistance in the form of increased...
Q One of the tax credit households at my site has an adult son who just left for the Marines and is stationed in another state. His wife still lives in the unit, and he still uses the unit as his legal address and receives his mail there. At...
On Dec. 23, 2011, the IRS issued temporary and proposed rules regarding the tax treatment of costs incurred in acquiring, maintaining, and improving tangible property, including multifamily buildings. The 255 pages of new regulations, published in the Federal Register, are temporary,...
In December, a group of lawmakers in the House and Senate introduced legislation to make permanent the 9 percent tax credit percentage floor for the low-income housing tax credit (LIHTC).
