LIHTC 203: Acq/Rehab Basics

Wednesday, May 16, 2018 - 10:00am to 4:00pm


Cost with conference registration: $450
Workshop only: $550

Instructors

webinars headshot panelist  thomas stagg

Thomas Stagg, CPA
Partner
Novogradac & Company LLP

Dayle Dalling, CPA
Manager
Novogradac & Company LLP

Agenda

*Agenda from 2017 Conference, new agenda forthcoming.

9-10 a.m. Registration 
10-10:50 a.m. Intro and Housekeeping, LIHTC Acquisition/Rehabilitation (Acq/Rehab) Overview
  • Clarifying resyndication
  • Credit percentages and 30 percent eligible basis boost
  • When a unit can start to count as “low-income qualified”
  • Applicable fraction and the first-year credit calculation
  • Tack-back rule
10:50-11 a.m. Break
11 a.m.-Noon Acquisition Issues
  • 10-year hold rule
  • Transfers of ownership; related parties
  • Timing for the acquistion credit rate
  • Allocation of costs between land and depreciable assets
Noon-1 p.m. Lunch
1-1:50 p.m. Acquisition Issues (cont.)
  • Qualifying existing tenants/units
  • Income limits for acq/rehab deals
  • 120-day rule
  • Signature dates vs. effective dates on tenant income certification
  • Over-income existing tenants (whether previously existing LIHTC project or not)
  • Income certification complications if acquisition is delayed
  • Previously qualified vacant units
  • Safe harbor rule
  • 120-day available-unit-rule test (similar to the 120-day rule)
1:50-2 p.m. Break
2-2:50 p.m. Acquisition Issues (cont.)
  • Income and rent limits for acq/rehab properties
  • The resyndication gap
  • Gross rent floor election and hold harmless
  • Managing old and new LIHTC regulatory agreements for resyndicated properties

Rehabilitation Issues

  • Minimum rehabilitation expenditures
  • Example: rehab/tenant tranfer/investor closing example
    • Rehab timing
    • Tenant transfers vs. move-outs
    • Occupied rehabs vs. vacant rehabs
    • End-of-the-month issues
    • Investor closing date (good vs. bad credits)
2:50-3 p.m. Break
3-4 p.m. Rehabilitation Issues (con't)
  • Example: rehab/tenant transfer/investor closing example (cont.)

Tips for Maximizing Credits
Record-Keeping Tips
Final Q&A