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Treasury Inspector General Issues Report Critical of IRS LIHTC Oversight

February 5, 2022

On January 26, 2022, the Treasury Inspector General (IG) for Tax Administration released a report titled, “Oversight of the Low-Income Housing Tax Credit Program Can Be Improved.” The audit was initiated at the request of the previous Chairman of the…

A. J. Johnson to Offer Average Income Live Webinar

January 14, 2022

A. J. Johnson will be conducting a webinar on January 26, 2022, on Requirements & Best Practices Relating to the Average Income Minimum Set-Aside for LIHTC properties. The Webinar will be held at 1:00 PM Eastern Time. The Average Income…

IRS Extends COVID-19 Relief for LIHTC and Tax-Exempt Bond Properties

January 11, 2022

On Friday, January 14, 2022, the IRS will release a notice (2022-05) extending widespread temporary relief from certain requirements for low-income housing tax credit (LIHTC) financed and private activity tax-exempt bond-financed properties due to the COVID-19 pandemic. Extended relief will…

A. J. Johnson to Host Live Webinar on The 4 Percent LIHTC Floor – IRS Revenue Ruling 2021-20.

December 12, 2021

A. J. Johnson will be conducting a one-hour live webinar on January 6, 2022, on The 4 Percent LIHTC Floor – IRS Revenue Ruling 2021-20. The Webinar will be held from 1:00 PM to 2:00 PM Eastern time. On December…

IRS Issues Revenue Ruling on 4 Percent Tax Credit Floor

December 4, 2021

The IRS has issued Revenue Ruling 2021-20, providing clarity on when taxpayers may claim the fixed four percent credit for properties with tax-exempt bonds. The IRS addressed three separate issues relative to the 4% credit: Does the minimum 4% applicable…

Claiming Low-Income Housing Tax Credit on Temporary Transfer Unit

November 6, 2021

A question that clients often ask regarding moving tenants around on acquisition rehab projects is “Can we claim the credit on both units, even though the resident will only be in the temporary unit until the rehab is done on…

A. J. Johnson to Offer Live Webinar on The Most Common LIHTC Non-compliance – Avoiding 8823s

October 16, 2021

A. J. Johnson will be conducting a webinar on October 26, 2021, on Avoiding the Most Common LIHTC Noncompliance – Remaining 8823 Free. The Webinar will be held from 1:00 PM to 2:30 PM Eastern time. Credit loss on tax…

Exclusion of Military Basic Allowance for Housing for LIHTC Properties

July 17, 2021

While the exclusion of the military Basic Allowance for Housing (BAH) for Low-Income Housing Tax Credit (LIHTC) properties in certain areas of the United States has been around for 13 years, there is still some confusion as to which properties…

HUD Extends Effective Period for 2019 and 2020 QCTs, DDAs that Were Not on Subsequent Lists

July 3, 2021

On July 2, 2021, HUD published a notice in the Federal Register extending the period by 180 days for which certain 2019 and 2020 qualified census tracts (QCTs) and difficult development areas (DDAs) are effective for purposes of the low-income…

COVID-19 IRS Extension for Qualifying Units (Notices 2021-12 and 2021-17)- Industry Positions on Year Two Credits

May 22, 2021

In January 2021, the IRS released Notice 2021-12, extending various COVID-19 relief provisions for the Low-Income Housing Tax Credit (LIHTC) and Tax-Exempt Bond programs. The service also added relief with regard to deadlines for satisfying occupancy obligations. Section IV.E of…

Key Improvements to LIHTC Program Possible for 2021

May 15, 2021

An updated Affordable Housing Credit Improvement Act (AHCIA) has been introduced in the House and Senate with bipartisan support. The House and Senate bills are identical and are a continuation of an effort that began with the initial introduction of…

HUD Confirms Income Exclusions

April 29, 2021

Unemployment Benefits & Child Tax Credit The 2021 Consolidated Appropriations Act (2021 Appropriations) and the American Rescue Plan of 2021 (ARP) amended three provisions to strengthen and extend unemployment benefits in the CARES Act and the ARP provides a monthly…

A. J. Johnson to Offer Webinar on LIHTC Acquisition/Rehab Issues

April 25, 2021

A. J. Johnson will be conducting a webinar on May 6, 2021, on Acquisition/Rehab of Low-Income Housing Tax Credit Projects – Critical Issues for Success. The Webinar will be held from 1:00 PM to 3:00 PM Eastern time. This two-hour…

HCCP Online Exam Now Being Offered By A. J. Johnson Consulting Services – Correction

March 13, 2021

Following is a correction to an earlier posted article on the HCCP online exam. Starting on March 8, 2021, A. J. Johnson Consulting Services will be offering the online version of the Housing Credit Certified Professional (HCCP) exam. Unlike the…

HCCP Online Exam Now Being Offered By A. J. Johnson Consulting Services

March 6, 2021

Starting on March 8, 2021, A. J. Johnson Consulting Services will be offering the online version of the Housing Credit Certified Professional (HCCP) exam. Unlike the in-person exam, the online exam will be offered on an ongoing basis and need…

IRS Extends COVID-19 Relief

January 16, 2021

In response to the COVID-19 pandemic, the IRS issued Notice 2020-53 in July 2020. This Notice provided temporary relief from certain requirements under §42 of the Internal Revenue Code and §§142(d) and 147(d) of the Code for properties with tax-exempt…

Fixed Four Percent Credit – When Does it Apply?

January 3, 2021

The COVID-19 relief legislation that was recently signed into law included a provision fixing the four percent LIHTC at an actual four percent rate. This floor applies both to properties with tax-exempt bonds and acquisition credits. However, there are transition…

CORRECTION – IRS Notice of Proposed Rulemaking on Average Income Test

November 2, 2020

Thank God my clients read better than I type. One of my more astute readers noticed a pretty significant typo in the example in #1 below. I have corrected the error – I hope it did not create too much…

IRS Notice of Proposed Rulemaking on Average Income Test

November 1, 2020

On October 30, the IRS published a Notice of Proposed Rulemaking in the Federal Register. This Notice concerns the LIHTC Average Income Test and outlines the current intention of the IRS with regard to certain rules governing the Average Income…

A. J. Johnson to Present Webinar on Complying with the Requirements of the IRS on Tax Credit Properties

October 17, 2020

A. J. Johnson will be conducting a webinar on October 27, 2020, on Meeting IRS Requirements for the Low-Income Housing Tax Credit Program. The Webinar will be held from 9 AM to 3:30 PM Eastern time. One of the key…

Recent Court Decision Confirms that a Right of First Refusal is Not an Option to Purchase

October 5, 2020

A recent New York court case has affirmed that a non-profit’s Right of First Refusal (“ROFR”) is not an option to purchase a Low-Income Housing Tax Credit (LIHTC) property. The Case Riseboro Community Partnership, Inc., formerly known as Ridgewood Bushwick…

Claiming Credit Without an 8609 – Impact of the Centralized Partnership Audit Regime

September 5, 2020

The Bipartisan Budget Act of 2015 created the Centralized Partnership Audit Regime (CPAR). This created a new process for amending or making changes to certain federal partnership tax returns for effective years beginning after December 31, 2017. As a result,…

A. J. Johnson Partnering with Mid-Atlantic AHMA – Webinar on Preparing Affordable Housing Projects for Physical Inspections

August 16, 2020

A. J. Johnson is partnering with the Mid-Atlantic Affordable Housing Management Association (Mid-Atlantic AHMA) in offering a webinar on Preparing Affordable Housing Properties for Agency Required Physical Inspections. The webinar will be live and will be held on August 26…

Despite Recent HUD Guidance, States Must Still Update Qualified Allocation Plans to Reflect IRS Monitoring Regulation

August 2, 2020

In February 2019, the IRS published a final regulation on how State Housing Finance Agencies (HFAs) must monitor for compliance with the requirements of the Low-Income Housing Tax Credit Program (LIHTC). On July 1, 2020, the Service released a proposed…

IRS Provides Clarification on COVID-19 Issues

July 24, 2020

The IRS recently issued guidance relating to COVID-19 relief for LIHTC projects (July 1). The National Council of State Housing Agencies (NCSHA) requested clarification from the IRS on two of the provisions in the IRS Notice (Notice 2020-53): (1) suspension…

IRS Releases Major LIHTC Program Guidance – July 1, 2020

July 1, 2020

On July 1, 2020, the IRS released an advanced copy of proposed regulations concerning low-income housing tax credit (LIHTC) housing finance agency (HFA) monitoring requirements and Notice 2020-53, which provides COVID-19 related relief to issuers, owners, operators, and tenants of…

Procedures for Requesting a Private Letter Ruling

May 23, 2020

A Private Letter Ruling (PLR) is a written decision by the Internal Revenue Service (IRS) that is sent in response to a taxpayer’s request for guidance on unusual circumstances or complex questions about their specific tax situation. For certain transactions…

IRS Extends Deadlines for Several LIHTC Requirements Due to COVID-19

April 18, 2020

The IRS has issued Notice 2020-23 extending the deadline to July 15, 2020 for any tax action that was due to be performed from April 1, 2020 through July 15, 2020. The actions for which the extended deadline applies were…

HUD Publishes 2019 Income Limits for Average Income Minimum Set-Aside

February 22, 2020

The Department of Housing & Urban Development (HUD) has published the income limits to be used by Low-Income Housing Tax Credit properties for which the Average Income (AI) Minimum Set-Aside is elected. As expected, the AI limits use the HUD…

Alabama Court Decision Requires that Restrictions on LIHTC Properties Must be Considered in Property Tax Assessments

February 16, 2020

On December 13, 2019, an Alabama Circuit Court ruled that use restrictions for Low-Income Housing Tax Credit (and other types of affordable housing) must be considered when assessing the value of properties for real estate tax purposes. The case is…

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