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The purpose of Oklahoma’s Affordable
Housing Tax Credits Program (AHTC) is to use federal tax credits
available under Section 42 of the Internal Revenue Code of 1986, as
amended (the Code), to the maximum extent possible each year as a
tool for the creation and maintenance of rental housing units for
low and very low-income households in the state of Oklahoma in such
a way as to further these goals:
Create units that are affordable to households having the lowest incomes
and for the longest time period.
Assist in the provision of financially viable, market appropriate
housing in areas of greatest need in the State.
Assist in the provision of quality housing at a reasonable cost to
meet a variety of needs.
Provide opportunities to a variety of qualified sponsors, both
for-profit and non-profit, for a variety of housing development
sizes.
Allocate only the amount of credit necessary for financial
feasibility of a development and its viability as a qualified
low-income housing development throughout the affordability period.
Allocate tax credits to rental housing developments which provide
the greatest overall public benefits.
Allocate tax credits to as many quality rental housing developments
as possible, considering cost, size, location, and income mix of
proposals
Projects can be
structured so that the sale of a project’s tax credits and other tax
benefits provides a source of capital for the development of
affordable rental housing for
new
construction of rental housing;
the
rehabilitation of existing units; and
the
acquisition of existing buildings under certain circumstances.
Tax credits can
be used for various types of rental housing, including housing for
families; special needs
housing; Single
Residency Occupancy (SRO) housing, and
housing for the
elderly.
The annual tax
credit amount is received over a 10 year period.
The tax credit program requires a 15 year
tax-credit compliance period. In addition, under a 1989 amendment to the program, the taxpayer and
the agency allocating the housing credit must enter into an
agreement for an extended low-income housing commitment that
continues at least 15 years after the end of the compliance
period and that is binding on the taxpayer and all successors.
During this period, a portion of a building covered by the
agreement cannot be sold unless the entire building is sold, and
the owner cannot refuse to lease units to Section 8 voucher
holders solely because of their Section 8 status.
The IRS may recapture a portion of the tax credits taken if
a project does not operate for the full 15-year compliance period.
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Housing
Development Team