Frequently Asked Questions

Affordable housing is generally defined as housing on which the occupant is paying no more than 30 percent of gross income for housing costs, including utilities.

The Low-Income Housing Tax Credit (Housing Credit) stimulates investment in affordable housing in underserved urban and rural communities and in higher cost suburban communities across the nation. It provides low-income families with a safe and decent place to live and, by lessening their rent burdens, frees up additional income that can be spent on other necessities or put into savings for education or homeownership. The Housing Credit is also a vital community and economic development tool, creating jobs and catalyzing redevelopment in struggling communities.

Ultimately, non compliance can result in the revocation of the LIHTC credits forcing repayment by the projects Owner.  

With both regular occurring reviews and annual certifications, any events of noncompliance results in a correction period. That initial correction period can be up to 90 days and extended to six months with good cause. It is paramount that any event of noncompliance identified is responded to before the end of the correction period. After all, if IRS Form 8823 is issued (by a state housing agency for notification of noncompliance), it is a much better position to be in to have the events reported as corrected at the same time the event, itself, is reported.