LIHTC 203: LIHTC Acq/Rehab Basics

Wednesday, September 28, 2016 - 9:00am to 3:00pm

« Back to Novogradac 2016 Affordable Housing Tax Credit Conference


Cost with conference registration: $325
Workshop only: $425


8-9 a.m.Registration and Breakfast
9-9:50 a.m.

Intro and Housekeeping; LIHTC Acquistion/Rehabilitation (Acq/Rehab) Overview

  • Clarifying resyndication
  • Credit percentages and 30% 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
9:50-10 a.m.Break
10-10:50 a.m.

Acquisition Issues

  • Ten-year hold rule
  • Transfers of ownership; related parties
  • Timing for the aquisition credit rate
  • Allocation of costs between land and depreciable assets
10:50-11 a.m.Break
11 a.m.-Noon

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)
Noon-1 p.m.Luncheon
1-1:50 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)
1:50-2 p.m.Break
2-3 p.m.

Rehabilitation Issues (cont.)

  • Example: rehab/tenant tranfer/investor closing example (cont.)
  • Group example

Tips for Maximizing Credits

Record-Keeping Tips

Final Q&A