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INDIANA SECTION 1602 GRANTEES REMINDED OF 30 PERCENT TEST DEADLINE

Monday, August 16, 2010 - 1:00AM

The Indiana Housing and Community Development Authority (IHCDA) last week released forms for the 30 percent test to be utilized by owners of projects that have received an award of Section 1602 funds. IHCDA also announced the 30 percent test will be due on January 5, 2011.  IHCDA requires recipients of funds awarded under the Recovery Act Section 1602 low-income housing tax credit exchange program that have not expended 100 percent of their Section 1602 funds by December 31, 2010 to demonstrate that they have paid or incurred at least 30 percent of the project’s total adjusted basis in land and depreciable property by December 31. If a project does not meet this 30 percent test as of December 31, all Section 1602 funds that have not been drawn down by that date to pay for eligible costs incurred will be forfeited by the owner.

Join Novogradac & Company at the 17th Annual Affordable Housing Tax Credit Conference, Sep. 30-Oct. 1, in San Francisco, Calif. to discuss the Recovery Act and other LIHTC hot topics.

Questions about meeting the 30 percent test and the documentation requirements in different states can be directed to your Novogradac & Company representative or to [email protected].

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