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Property Compliance News Briefs - September 2011

Arizona Department of Housing (ADOH) in Information Bulletin No. 18-11 announced the release of the agency's updated low-income housing tax credit (LIHTC) property compliance manual. ADOH said the manual is a training and reference guide for LIHTC property owners to use as a supplement to the Internal Revenue Service's existing guidelines and rules under Section 42. If any provision of the manual is in conflict with Section 42, the agency said the Internal Revenue Code will govern. The manual is available for download at the Arizona Department of Housing.

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Nebraska Investment Finance Authority (NIFA) announced that it is leading the National Affordable Housing Equality Initiative (NAHE) to raise awareness of the problems caused by outdated restrictions in the LIHTC program. NIFA said the initiative seeks to recalibrate the LIHTC program's national household income limits. To that end, the agency has released a state-by-state graphical comparison of the LIHTC program's 60 percent area median income limits. The comparison charts can be viewed online at the Nebraska Investment Finance Authority.

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Florida Housing updated its compliance guidebook to reflect new income and rent limits from the U.S. Department of Housing and Urban Development (HUD). HUD revised the limits for the West Palm Beach – Boca Raton metropolitan statistical area (MSA) and also released revised HOME income and rent limit tables. The effective date of the revised limits was July 13. Access the compliance guidebook at Florida Housing.

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The California Tax Credit Allocation Committee (TCAC) released a memo on July 29 with additional guidance on its revised rent and income limits. Specifically, the memo provides detailed information on the gross rent floor election, which TCAC said may affect properties placed in service on or after May 14, 2010. Owners and managers of such properties should be aware of the gross rent floor election because the income limit in 19 counties decreased in 2009, 2010 or 2011, TCAC said. The memo, which includes a complete list of affected counties, is available at the California Tax Credit Allocation Committee.

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The Internal Revenue Service (IRS) issued Notice 2011-65 to suspend in Alabama certain requirements under Section 42, allowing LIHTC properties to provide emergency housing relief for residents displaced by severe storms, tornadoes, straight-line winds and flooding that began on April 15. The IRS said it will temporarily suspend income limitations for LIHTC properties that have received approval from the Alabama Housing Finance Authority to rent vacant units to displaced individuals. Other rules and requirements of Section 42 continue to apply during the temporary housing period. Download a copy of Notice 2011-65 at www.taxcredithousing.com.

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The IRS added Benson County to its list of North Dakota areas where residents affected by flooding may qualify for tax relief. Other federal disaster areas on the list are Barnes, Burleigh, McHenry, Morton, Ramsey, Renville, Richland and Ward counties, and the Spirit Lake Nation. Individuals who reside or own a business in those areas may qualify for tax relief, including postponement until August 1, 2011 of certain filing and payment deadlines, and waiver of failure-to-deposit penalties for employment and excise tax deposits. The IRS instructed affected taxpayers who receive a penalty notice to call the telephone number on the notice to have the IRS abate any interest and late filing or payment penalties that would otherwise apply. More details are available at www.irs.gov.

Journal Category:

Property Compliance

Authors:

Novogradac

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