The tax credits provided are based on how much is invested in the property by the owner. Cascade management oregons premier property management find. The compliance monitoring requirements became effective on january 1, 1992, were amended on. It is not intended to be detailed or comprehensive. Tax credit forms and documents annual year end reporting and compliance monitoring fees. This housing tax credit compliance manual can be accessed at south dakota housing development authority po box 1237 pierre, sd 57501 phone. Cascade management further has developed a policy and procedure manual specifically for the rural development program to assist site staff and assure uniform compliance. Mfa has developed the new mexico mortgage finance authority lowincome housing tax credit compliance plan formerly the owners compliance manual as a guide to help developers, owners, and managers of properties with tax credits in understanding their. This manual is provided solely for your convenience and is not intended to provide legal advice or to be relied upon in any way by any person or entity regarding the applicable statutes and regulations governing the lowincome housing tax credit program. Program compliance materials and forms for the low income housing tax credit. Lowincome housing tax credit lihtc compliance virginia. Affordable housing guidebooks preferred compliance solutions. Qualified basis the portion of the eligible basis attributable to. The purpose of the lihtc program is to provide a federal income tax incentive.
Housing compliance kansas housing resources corporation. The qualified allocation plan requires that at least one mangement representative and one ownership representative attend a chfa session or a compliance training session approved by chfa prior to receiving their irs forms 8609 from chfa. Assessment tool dhs multiple languages assessment tool initial screening covid19 impacts self certification disability third party verification. It is for informational purposes and may not be suitable for legal purposes. Lowincome housing tax credit program compliance monitoring manual 300c outlet pointe blvd columbia, south carolina 29210 main 803 8969001 tdd 803 8968831 fax 803 8969189 housing south carolina is our business visit us on the world wide web at. Tax credit compliance idaho housing and finance association. As your lihtc compliance resource, we have provided compliance manuals, program forms, training opportunities, and online tools to help you stay on top of. Four percent credits must be used for affordable multiunit rental housing development. Affordable housing tax credit program compliance manual. Michigan lihtc compliance manual schedule a of form 8609 is completed by the tax payer and filed annually with the tax payers tax return along with forms 8609 and. In addition, because of the cost of applying for the program and the extensive. Lowincome housing tax credit program compliance manual. Hpd funds certain affordable housing with home dollars andor lowincome housing tax credits lihtc. In 1998 she moved into a position at oregon housing and community services as a compliance officer and quickly took on the lihtc lead position.
Compliance manual ctcac online compliance manual appendix 1 lihtc foundations 26 cfr part 1. Data output is in either easytoread html tables, or a commadelimited text file suitable for further analysis with spreadsheet, database, or statistical software. Webinar attendees will receive a contentrich pdf manual. Tax credit compliance relates to any multifamily properties that were developed using lowincome housing tax credit lihtc allocations. Treasury department and authorized under section 42 of the irs code of 1986. The lowincome housing tax credit lihtc program is a tax incentive program designed to increase the supply of quality, affordable rental housing by helping developers offset the costs of rental housing developments for individuals with low to moderateincome.
For tax credit developments placed in service on or after january 1, 1990, the compliance period is 15 years, with an additional extended use period of 15 years for a total of 30 years, unless otherwise specified in applicable. Addresses salem office main north mall office building 725 summer street ne, suite b salem or 973011266 directions to our main office links. Trademarked names may appear throughout this document. The lihtc funds affordable housing by reducing taxes for owners who build housing for lowincome households. Lowincome housing tax credit lihtc program that began in 1987 and received permanent authorization with the omnibus budget reconciliation act of 1993. It is intended to answer questions regarding the procedures, rules, and regulations that govern the htc developments. The oregon affordable housing management association presents. Oregon housing and community services ohcs is the designated housing finance agency. Key terms to learn from reading this chapter 18 23.
Affordable housing financing with lihtcs and taxexempt bonds. The four percent lihtc initial application is an open, noncompetitive process to efficiently distribute tax credits to projects with an allocation of taxexempt bond financing. This is the countrys most extensive affordable housing program. Rather than list the names and entities that own the trademark or insert a trademark symbol with each mention of the. Overview of the lihtc programs minimum set aside msa requirements understanding the. Nov 12, 2020 the federal lowincome housing tax credit lihtc program is sponsored by the u. The housing compliance monitoring teams ensure compliance with program requirements by making customers aware of housing program laws, rules, regulations and policies. We have federal and state affordable housing guidebooks, featuring irs 8823 guide, hud 4350. Georgia department of community affairs low income. Forms and manuals are available below for local agencies operating the housing and homeless service programs. The lowincome housing tax credit compliance manual is a training and. Section 252 of the act and section 42 of the internal revenue. Owners of affordable housing with this type of funding must comply with applicable federal regulations, and hpd is legally required to monitor compliance to ensure continued affordability and habitability.
Required to have on file a copy of the letter sent to tenants notifying them of a pending physical inspection of the unit. Lihtc compliance manual lihtc housing history the lowincome housing tax credit lihtc was passed into law with the tax reform act of 1986. March 2019 chapter 1 program summary the following is a brief summary of the requirements of the tax credit program. Novogradac is a national professional services organization that consists of affiliates and divisions providing professional services that include certified public accounting, valuation and consulting with more than 25 offices nationwide. Through the lihtc program, owners receive a reduction in tax liability in exchange for providing affordable housing. Low income housing tax credit program compliance manual. Housing compliance protects the tenants who rely on the programs administered through kansas housing. Oregon state archives 800 summer street ne salem, or 97310 phone. Compliance monitoring by south dakota housing development authority sdhda will be administered through the rental housing management division. Links to states lihtc compliance guidance novogradac.
Housing tax credit program lihtc georgia department of. January, 2016 page 1 preface this manual is a training and reference guide for the administration of the housing tax credit htc program. The compliance period is 15 years beginning with the first year of the tax credit period placed in service year or subsequent year if deferral was elected. Also known as low income housing tax credit lihtc program is to expand the supply of new affordable rental units and rehabilitate existing rental housing for qualifying households by stimulating private investment. The program, administered in virginia by virginia housing, encourages the development of affordable rental housing by providing owners a federal income tax credit. The compliance period for tax credit developments placed in service prior to january 1, 1990, is 15 years. The tax credit compliance procedures manual was designed to give property owners and managers stepby step instructions on how to fulfill compliance requirements if commissionissued lowincome housing tax credits were used to finance a property. Through compliance and monitoring of federal guidelines, our team also helps developers, chdos, and other housing partners secure their investment in safe, affordable housing for kansans. The credit is a dollarfordollar reduction in tax liability to.
Oklahoma housing finance agency affordable housing tax. Description of the tax credit program as administered by hpd 19. Lihtc program compliance frequently asked questions. Provide an lihtc compliance manual and related materials. The lihtc program provides incentives for investment of equity capital in the development of affordable single family or multifamily rental housing. Required to have on file all copies of irs forms 8609 with part ii completed. As regulations and programs evolve, ohfa makes updates to the compliance rules and procedures associated with our various projects and programs. Georgia department of community affairs low income housing.
Ctcac compliance manual california state treasurer. Tax credit specialist tcs national center for housing. Three periods of compliance there are three periods of compliance that must be taken into consideration when owning, managing or monitoring a. Hawaii housing finance and development corporation low income. Rental housing tax credit compliance manual this manual provides information on regulations and policies that affect compliance during the compliance and extended use periods for projects funded with rental housing tax credits 2019 rental housing tax credit compliance manual. The low income housing tax credit lihtc is a dollarfordollar federal tax credit for affordable housing investments created under the tax reform act of 1986. Irs proposed regulations, published october 30, 2020, and the severe implication non compliance would have on a projects tax credits. This lowincome housing tax credit compliance manual the manual is intended to provide a basic description and explanation of the rules and regulations to maintain compliance for properties which have received an allocation of affordable housing tax credits pursuant to section 42 of the internal revenue code the code. Cascade management oregons premier property management. If you are responsible for tax credit properties, whether you are a manager, compliance specialist, or other staff, tcs was designed to provide you with the best working knowledge of the tax credit program. Start over communities remove constraint communities subject lowincome housing oregon.
This manual is produced for use by lihtc program participants in missouri to be. Cascade management is familiar with the management agent interactive network connection minc for all purposes including the transmission of tenant data. The responsibility for compliance with federal program regulations lies with the owner of the building for which the low income housing tax credit is allowable. The low income housing tax credit program was created by congress as part of the tax reform act of 1986. This archived document is maintained by the oregon state library as part of the oregon documents depository program. The tenant compliance forms on our website have been updated. Lowincome housing tax credit program compliance oregon.
Demonstrating due diligence is key to protecting the owners credits. Tax updates for lihtc funds and partnerships posted on march 9, 2021 march 2, 2021. Introduction to the nychpd compliance manual 12 chapter two. Ihda lihtc program manual for owners and agents august, 2019 page 3 introduction the low income housing tax credit program program description. New jersey new mexico new york north carolina north dakota ohio oklahoma oregon pennsylvania rhode island south carolina south dakota. Data are now available for projects placed in service through 2016. Low income housing tax credit compliance lihtc compliance. Housing tax credit lihtc the housing tax credit program lihtc is designed to provide forprofit and nonprofit developers with an incentive to create and maintain affordable housing. This system allows selective access to data from huds lowincome housing tax credit database. Lihtc database access if you are looking for affordable housing in which to live this site may be used to locate rental housing supported by the lihtc and having.
During her tenure, she drafted the first ohcs tax credit manual for owners and managing agents. Lihtc compliance is solely the owners responsibili ty. Income restricuted housing and lihtc portland, burns. Low income housing tax credit lihtc training and compliance. Oregon state library digital collections 30 remove search. Therefore, it is highly recommended that owners and agents check this. Weve provided the following forms, documents and information to help with compliance to ohfas. Penalties can include loss of or ineligibility for future funding. The compliance period irc 42i1 is the duration of the credit period plus 5 years. We do this by presenting annual workshops, providing training, making manuals and program references accessible and having staff available by telephone or email to answer questions. The purpose of the oklahoma affordable housing tax credit ahtc.
Baton rouge, louisiana 70808 phone 225 34220 revised, fax 225 34210. Tax credit compliance applies to properties developed through tcap, 1602, and taxfree bond funding and can also apply to properties developed through any combination, or layering, of the previous funding sources, as well as home gapfunding. Lowincome housing tax credit program virginia housing. Public records act government code 62506270 general explanation of the tax reform act of 1986. Lihtc program compliance frequently asked questions oregon. Rio piedras, pr 00919 phone 7877657577 fax 7873003171 juullyy 62200116. The oregon affordable housing management association.
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