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…

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…

FAQ for LIHTC / Tax Credit Tenants

Below are some common questions asked by LIHTC Section 42 tenants and prospective residents: My landlord at a tax credit housing (LIHTC Section 42) property just raised my rent, but my income did not increase.  Is that allowed? LIHTC rents are NOT determined by your individual income. It is possible for your rent to increase even though your income did not go up. Rents at tax credit properties are determined…