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
- Dakota County CDA
- City of Saint Cloud
- Washington County
HRA
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 it tax
credit policies and procedures. Suballocators
directly notify the IRS about project
noncompliance and corrective action taken using
form 8823.
HTC Income and Rent Limits
The 2010 income and rent limits were published with a
5/14/2010 effective date. These limits remain in effect until new limits are published.
New income and rent limits must be implemented no later than 45 days after HUD releases the new limit or HUD's effective date, whichever is later.
The implementation date for new 2010 tax credit income and rent
limits for suballocator projects is June 28, 2010.
2010 HTC and Tax Exempt Bond Income Limits
Minnesota Suballocator Income Limits
Minnesota Income Limits
2010 HTC and Tax Exempt Bond Rent Limits
-
Table A, for projects Placed In Service on or before 12/13/2008
-
Table B, for projects Placed In Service on 1/1/2009 to 5/13/2010
-
Table C, for projects Placed In Service on or after 5/14/2010
Tenant Income
Certification and Verification Forms
AHC, Inc. will accept compliance monitoring
forms issued by Minnesota Housing for Sec. 42
tax credit compliance reporting EXCEPT for the
following, which must be used for all projects
with Suballocator issued tax credits.
+ Suballocator
Data Practices Form 1-10
+ Affordable Housing Connections, Inc.
TREATMENT OF COMMON SPACE UNIT
PURSUANT TO REVENUE RULING 92-61 (Can use MHFA from as well)
+
Certification of Material Participation of
Non-Profit HTC Program Compliance
Electronic Reporting
Program
AHC, Inc. requires the electronic submission of
annual reports on Minnesota Housing’s Electronic
Reporting Program (or “ERP”).
+
Link to MHFA website for current version of ERP
+
Available Unit Rule and Vacant Unit Rule Reporting
+
Tenant Demographic Profile
Q & A on HTC Compliance
Guidance from AHC staff in response to commonly
asked questions about complying with the
requirements of the tax credit program. This
section will be updated from time to time to
incorporate new IRS guidance and new questions
from the industry. Topics include:
- First Year Projects
- IRS Guide to Completing the 8823 Form (revised
10-1-2009)
- Student Eligibility
- Basic tips for verifying and certifying
household income
- Annual Reports and Certifications
- Physical Inspections and File reviews
- Extended Use Period
- Mixed Use Properties (multiple program funds or
market/low income mix)
- Transitional/SRO Housing
Q & A on HTC
Compliance
New IRS 8823 Guide to be amended
10/1/2009
As compliance monitoring agent for your tax
credit project, we are informing you that your
Suballocator concurs with the date of January 1,
2008 for implementation of the IRS 8823 Audit
Guide published January 2007 and with the
rationale for this implementation ...
more ...
HUD Occupancy Manual (Handbook 4350.3) Rev 3.
Change 1
Occupancy Requirements of Subsidized Multifamily
Housing Programs
http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/
Or call 1-800-767-7468
Uniform Physical Condition Standards UPCS
The UPCS is the standard for periodic physical
inspections performed under the HTC
requirements. Become familiar with these
standards to maintain your property and avoid
findings. Effective January 1, 2008, nearly all
findings from physical inspections will be
reportable on an 8823 form, even if it has been
corrected. See this link for "Dictionary of
Deficiency Definitions" of the UPCS.
More
Useful Websites
Social Security Administration
Cost Of Living
Allowance (COLA) information.
Previous Years
Cost Of Living Allowance (COLA) - Adjustments
since 1975
Utility Allowances for Twin City Metro Area
Housing Link posts on its website metro area
utility allowances for apartments and multi-unit
properties, townhouse/duplex properties, and
single family properties. The owner selects the
appropriate source for utility allowances. See
Compliance Manual for more details
Go to Housing Link to get utility allowance
source documents
IRS Regulations
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.
http://www.novoco.com/low_income_housing/lihtc/irs_guidance.php
Tax Credit Report Submissions
