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Property Compliance News Briefs - August 2015

On July 2, the Internal Revenue Service (IRS) released private letter ruling (PLR) 201527017. The letter was sent in response to a request to correct an administrative error or omission relating to the allocation of LIHTCs. The taxpayer found that when completing the Forms 8609 for buildings one and two, the applicable fraction for the buildings were erroneously switched, resulting in an incorrect allowable credit amount on line 1b and maximum qualified basis amount on line 3a of the Forms 8609. The PLR states that an amendment to Form 8609 is necessary to correct an administrative error or omission relating to the allocation of LIHTC amounts. Like all PLRs, the guidance is meant only for the taxpayer who requested it. The PLR is available at www.taxcredithousing.com.

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The U.S. Department of Housing and Urban Development (HUD) released Notice H-2015-04 June 22. The notice provides owners and management agents (O/As) guidance on the methodology for completing a multifamily housing utility analysis required with annual rent adjustments. The notice also provides guidance on when a utility rate change results in a cumulative increase of 10 percent or more from the most recently approved utility allowance. The notice is applicable to the project-based Section 8 program, among others. In addition to the notice, HUD also released a memorandum from Benjamin Metcalf, deputy assistant secretary. The memorandum described methods for compensating O/As for collecting and reporting utility data.

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The Ohio Housing Finance Agency (OHFA) announced the 2015 Tax Credit Compliance Training Course Overview. The first training was held July 9, with future training scheduled for Aug. 13, Sept. 10, Sept. 17 and Oct. 20. The training sessions discuss areas such as applicable fraction, student rule, next-available-unit rule, required forms and policies and compliance reporting. OHFA provides the courses due to the frequent updates of compliance rules and procedures. The notice of trainings is available at www.taxcredithousing.com.

Journal Category:

Property Compliance

Authors:

Novogradac

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