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IRS PUBLISHES FINAL UTILITY ALLOWANCE RULES

Tuesday, July 29, 2008 - 7:00AM

The Internal Revenue Service (IRS) today published final regulations regarding utility allowances for low-income housing tax credit (LIHTC) properties. The final rule made several changes, including amending the regulations to allow owners of LIHTC buildings that are neither Rural Housing Service (RHS)-assisted nor U.S. Department of Housing and Urban Development (HUD)-regulated, and in which no tenant in the building receives RHS tenant assistance, to choose from five options when determining the applicable utility allowance: the public housing authority (PHA) utility allowance; the local utility company estimate; the state agency estimate; HUD's utility schedule model; or an energy consumption model.

A complete discussion of the changes made by the final regulations will be available in an upcoming issue of the Property Compliance Report.

 

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