The Low Income Housing Tax Credit was developed to provide incentives for private sector production of low-to-moderate income housing. The credits provide a mechanism for funding a wide range of developments including new construction, substantial rehabilitation, moderate rehabilitation, acquisition, and repair by existing owners.
In the state of Minnesota, the Minnesota Housing Finance Agency (Minnesota Housing) is the primary apportionment Agency of Housing Tax Credits in Minnesota. Qualified local cities and counties also have been designated by the Legislature as Suballocators of the tax credit. Affordable Housing Connections, Inc. has been designated as the agent to perform certain compliance monitoring functions by these Suballocators:
• Minneapolis CPED
• Saint Paul PED
• City of Rochester
• City of Saint Cloud
• Washington County CDA
Each Suballocator develops and implements a Qualified Allocation Plan (QAP) for its portion of tax credits and issues a Tax Credit Compliance Monitoring Manual to direct owners and managing agents in tax credit policies and procedures. Suballocators directly notify the IRS about project noncompliance and corrective action taken using form 8823.
Please see the “Forms & Reporting Tools” Quick Link on the left to download compliance forms; including IRS Guide for Completing Form 8823, Data Practices Act Forms, and many others.
Please see the “Program Manuals” Quick Link on the left for Suballocator Contact Information & Manuals.
Please see “Income and Rent Limits” Quick Link on the left for past and present limits.
HUD Occupancy Requirements (Handbook 4350.3) Rev 1. Change 4
Chapter 5 of the HUD Occupancy Manual Requirements of Subsidized Multifamily Housing Programs is used for determining income from income sources and assets. Information on deductions, allowances, and calculating rent does not apply to Section 42.
Or call 1-800-767-7468
The UPCS is the standard for periodic physical inspections conducted for Section 42 and HOME Program projects. Become familiar with these standards to maintain your property and avoid findings. Effective January 1, 2008, findings from AHC physical inspections will be reported on IRS Form 8823, even if corrected, for the Section 42 Program. Noncompliance, whether corrected or not, with State and Local codes also may be reported to the IRS for the Section 42 Program and/or to the HOME Participating Jurisdiction (PJ). See this link for "Revised Dictionary of Deficiency Definitions" of the UPCS - Effective August 9, 2012.
HousingLink posts on its website metro area utility allowances for apartments and multi-unit properties, townhouse/duplex properties, and single family properties. See Compliance Manual for more details.
Novogradac offers a useful library of IRS documents on its website, including Revenue Rulings, Private Letter Rulings, Revenue Procedures, and Internal Revenue Code Section 42.
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