Affordable Housing Connections
Business Partner to the Housing Industry since 1989
Section 42 Tax Credit
FDIC AHP
HOME Program

Income Calculation Tool

+ Use this Excel worksheet to calculate annual anticipated gross income.
It's a great way to document your files with a detail of your calculation.

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 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 2012 income and rent limits were published with a 12/01/2011 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 2012 tax credit income and rent limits for suballocator projects is January 14, 2012. 
  

    - 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 5/30/2011
    - Table D, for projects Placed In Service on 5/31/2011 to 11/30/2011
    - Table E, for projects Placed In Service on or after 12/1/2011

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 Act Form
 + Affordable Housing Connections, Inc. TREATMENT OF COMMON SPACE UNIT PURSUANT TO REVENUE RULING 92-61 (Can use MHFA form 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

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 Cities Metro Area
HousingLink 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 www.housinglink.org 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

Suballocator HTC Properties

 

Suballocator Contact Information and Manuals
City of Rochester

Mr. Terry Spaeth

City Administrator’s Office
201 4th Street SE, Room 266
Rochester, MN 55904-3781
Phone: (507) 285-8083
Fax: (507) 287-7979
tspaeth@rochestermn.gov
Rochester Manual
City of Minneapolis

Mr. Scott Ehrenberg
Minneapolis CPED

105 5th Avenue S., Suite 200
Minneapolis, MN 55401
Phone: (612) 673-5067
Fax: (612) 673-5259
scott.ehrenberg@ci.minneapolis.mn.us
Minneapolis Manual
City of Saint Cloud

Loiuse Reis
Saint Cloud HRA

1225 W. St. Germain
Saint Cloud, MN 56301
Phone: (320) 252-0880
lreis@stcloudhra.com
Saint Cloud Manual
City of Saint Paul

Mr. Joe Collins
Saint Paul PED

25 W. 4th St., Rm. 1300
Saint Paul, MN 55102
Phone: (651) 266-6020
Fax: (651) 228-3261
joe.collins@ci.stpaul.mn.us
Saint Paul Manual
Washington County

Ms. Melissa Taphorn
Washington County HRA

321 Broadway Avenue
Saint Paul Park, MN 55071
Phone: (651) 458-0936 ext 555
Fax: (651) 458-1696
mtaphorn@wchra.com
Washington County Manual

 

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