LIHTC and Section 8: Acq-Rehab Pitfalls to Avoid

Section 42 low income housing tax credits are useful tools for funding the development, acquisition and rehabilitation of rent-subsidized Section 8 properties. There are obvious benefits to twinning LIHTC with project-based Section 8 HAP contracts and project based vouchers (PBV), but contradictions between these programs also elevate the risk of regulatory compliance errors. The affordable housing compliance experts at TheoPRO have identified three key issues: 1. Section 8 households may…

Tax Credit Training for LIHTC Asset Managers and Property Managers

Asset managers and property managers trained in LIHTC / Section 42 tax credit compliance can help investors and developers to avoid the high cost of affordable housing program violations. Asset managers and property managers play critical yet distinctly different roles in the compliance process. Property managers serve as a project’s first line of defense, yet also have to maintain positive relationships with applicants and current residents who don’t always appreciate…

LIHTC Section 42 Compliance: Tips for Combining Funding Programs

Programs such as Section 8, RD/ USDA Rural Development, RAD/ Rental Assistance Demonstration, HOME / HOME Investment Partnerships Program and Housing Trust Funds include contradictory provisions that pose challenges when they are combined with Section 42 LIHTC housing credits. Yet rising costs and federal program changes are fueling a growing need to integrate these sources when developing affordable housing projects. Special care needs to be taken when aggregating them. It…

LIHTC Section 42 Compliance: Year-End Issues

  The end of each tax year poses unique challenges for Section 42 LIHTC properties. For most affordable housing developments, those challenges make December 31 an especially important day. It is imperative to make sure that your Section 42 house is in order prior to year’s end. Issues that remain unresolved after December 31 move into a critical, more risky position. Lease-up risk and LIHTC compliance Units that have not…

LIHTC | Tax Credit Consulting

Westmont Advisors provides consulting services for the Low Income Housing Tax Credit (LIHTC), Historic Tax Credit and other US state and federal tax credits. Click below to learn more.