SECTION 1602 GRANTEES REMINDED OF 30 PERCENT TEST DEADLINE
The California Tax Credit Allocation Committee (TCAC) announced today that it is preparing forms for the 30 percent test to be utilized by owners of projects that have received an award of Section 1602 funds. TCAC requires that 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 use these forms 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.