Property Compliance News Briefs - June 2016

Monday, June 6, 2016

The California Tax Credit Allocation Committee (TCAC) released a placed-in-service checklist update April 19. The updated items include 1-01, the complete application; 3-01, total funds raised, costs associated with the syndication, total payment to the partnership and the pay-in schedule; 3-05, documentation of deeds of trust and other financing. The updated placed-in-service checklist is available at www.taxcredithousing.com.

***

The Ohio Housing Finance Agency (OHFA) announced April 12 that it is suspending its utility allowance consumption model in order for staff to explore OHFA policy and ensure the housing agency continues to meet the standards of both the Internal Revenue Service (IRS) and of Section 1.42-10 of the Internal Revenue Code. This suspension is effective July 1 and new requests for a consumption-based utility allowance will not be accepted. Owners who have requested a consumption-based allowance before July 1 are exempt from this suspension. Approved consumption-based utility allowances will not be rescinded.

***

The California Tax Credit Allocation Committee (TCAC) released a memo April 28 regarding over-income tenants in more deeply targeted units. TCAC addressed when an over-income tenant may occupy a more deeply targeted unit, either during a resyndication or during first syndication of a development subject to an existing regulatory agreement. TCAC and the California Debt Limit Allocation Committee (CDLAC) determined that for all 4 percent tax credit developments subject to an existing public regulatory agreement, and for 9 percent tax credit projects proposing rent and income targets that are substantially similar to an existing regulatory agreement, they will continue the current practice. That includes reviewing and underwriting developments pursuant to the targets proposed without consideration of the incomes of the current residents. But they will require applicants to begin moving toward the targeted income levels immediately. This decision and associated policies listed in the memo will apply to applications received on or after May 15. The memo is available at www.taxcredithousing.com.

Journal Category: 
Property Compliance