How long is the LIHTC program compliance period?
How long is the LIHTC program compliance period?
15-year
Although LIHTC properties must commit to at least 30 years of affordability, they are only subject to a 15-year “compliance period.” This is the period of time where the tax credits that have been given to developers can be taken away or “re-captured” if the property fails to comply with LIHTC regulations.
What is the 140% rule?
If the gross income of the occupants of a qualifying unit increases to more than 140% of the applicable current income limit, the unit may continue to be counted as a low income unit as long as the unit continues to be rent-restricted and the next unit of comparable or smaller size is occupied by a qualified low-income …
What is a compliance period?
Compliance Period means a three-year calendar year period within a compliance cycle. Compliance Period means a period of time that the Development shall conform to all set-aside requirements as described further in the rule chapter and agreed to by the Applicant in the Application.
What does compliance do in apartments?
Remember compliance is critical to the owner retaining their tax credits on a property. The compliance specialist or auditor makes sure that every file is reviewed consistently and is in the proper order to comply with the requirements.
What is the next available unit rule?
The Next Available Unit Rule (NAUR) is sometimes termed the 140% Rule or the Available Unit Rule (AUR). Special rules apply when a household’s income increases above 140% of the current applicable income limitation (i.e., 140% above either 50% AMGI or 60% AMGI, based on the minimum set- aside elected for the project).
What does the IRS consider a low income community?
“The term ‘low-income community’ means any population census tract…” Your community is the census tract that your address is located in. The Census Bureau divides counties up into smaller zones called tracts. Your eligibility depends on the income characteristics of families in that area or tract.
How does a Section 42 work?
A Section 42 Notice is a formal request from a leaseholder to the freeholder or landlord (or both) and any other appropriate party to extend their lease on a property. This provides a leaseholder with an extension of 90 years on top of the remaining lease term and a ground rent reduced to zero.
