Revised Tax Credit Compliance Manual - Revised October 2005
Revised Tax Credit Compliance Manual - Revised October 2005
|
Table of Contents |
| 1) | OK Affordable Housing Compliance Manual Overview | Page I | ||
| 2) | The Low Income Housing Tax Credit Program | Page II | ||
| 3) | Key Program Documents | Page III | ||
| 4) 2002 Revision List | Page IV | |||
| 5) 2003 Revision List | Page VI | |||
| 6) 2004 Revision List | Page VIII | |||
| 7) 2005 Revision List | Page X | |||
|
|
||||
| Chapter One The Rules, Requirements, and Resources | Page 1-1 | |||
| 1) | IRC Section 42 "Code" | |||
| 2) | OHFA Chapter 36 Program Rules | |||
| 3) |
26
CFR 142-5 Compliance Monitoring/Compliance with Low Housing Credit Requirement |
|||
| 4) |
Recommended
Practices in Compliance Monitoring (NCSHA) (Standardized forms required January 1, 2002) |
|||
| 5) | Tax Credit Resources | |||
| 6) IRS Notice 2005-69 Hurricane Katrina | ||||
| Chapter Two OHFA's Responsibilities | Page 2-1 | |||
| Chapter Three Owner's Responsibilities | Page 3-1 | |||
| 1) | Reports | Page 3-1 | ||
| a | Quarterly Owner Certification | Page 3-1 | ||
| b | Annual Owner Certification | Page 3-2 | ||
| c | Unit Data Sheet | Page 3-2 | ||
| d | Management and Ownership Changes | Page 3-3 | ||
| 2) | Fees and Tax Forms | Page 3-3 | ||
| a | Compliance Monitoring Fees | Page 3-3 | ||
| b | Tax Forms (8586, 8609 & Schedule A-8609) | Page 3-4 | ||
| 3) | Record Keeping | Page 3-4 | ||
| a | Tenant Files | Page 3-4 | ||
| b | Development Files | Page 3-5 | ||
| 4) | Occupancy Rules | Page 3-5 | ||
| a Project Occupancy Restrictions | Page 3-5 | |||
| b Comp with Fair Housing and Equal Opportunity Laws | Page 3-6 | |||
| c Transfers | Page 3-6 | |||
| d | Lease Requirements | Page 3-7 | ||
| e | Student Households | Page 3-7 | ||
| f | Available Unit Rule | Page 3-7 | ||
| g | Unit Vacancy Rule | Page 3-8 | ||
| h | Buildings With Four or Fewer Units | Page 3-8 | ||
| i | Equality Between Low-Income and Market-Rate Units | Page 3-8 | ||
| j | Employee/Mgr/Exempt-Staff Units | Page 3-9 | ||
| k. Model Units | Page 3-9 | |||
| l. Homeless Units | Page 3-10 | |||
| 5) | Placing a Property in Service | Page 3-10 | ||
| a New Construction | Page 3-10 | |||
| b Acquisition/Rehab | Page 3-10 | |||
| c. Rev Proc 2003-82 | Page 3-11 | |||
| 6) | Determining Family Income | Page 3-11 | ||
| Chapter Four Rent Restrictions and Lease Requirements | Page 4-1 | |||
| 1) | Rent Restrictions | Page 4-1 | ||
| 2) | Maximum Allowable Rents for TC Units | Page 4-1 | ||
| 3) | Optional Services Available to Residents | Page 4-2 | ||
| 4) | Charges for Development Services | Page 4-2 | ||
| 5) | Rents for Units Receiving Tenant-Based Assistance | Page 4-2 | ||
| 6) | Changes Affecting Allowable Rents for TC Units | Page 4-3 | ||
| a | Annual Revisions to LIHTC Rent Limits | Page 4-3 | ||
| b | Changes in Local Utility Allowances | Page 4-3 | ||
| c | Adjusting Unit Rents | Page 4-4 | ||
| d | Rent Floors | Page 4-5 | ||
| e | Rents for TC Units with Over-Income Tenants | Page 4-5 | ||
| 1. | Mixed Income Developments | Page 4-6 | ||
| 2. | 100 Percent Low-Income Developments | Page 4-6 | ||
| f | Developments Receiving other Forms of Assistance | Page 4-6 | ||
| 7) | Utility Allowances | Page 4-6 | ||
| 8) | Dwelling Lease Requirements | Page 4-8 | ||
| a | Term of Lease | Page 4-9 | ||
| b | Prohibited Lease Requirements | Page 4-9 | ||
| c | State and Local Law | Page 4-10 | ||
| Chapter Five Determining Tenant Eligibility | Page 5-1 | |||
|
Step 1 |
Complete Rental Application | Page 5-2 | ||
| a | Determine Household Eligibility | Page 5-2 | ||
| b | Evaluate Annual Income | Page 5-2 | ||
| 1. | Regular Income | Page 5-2 | ||
| 2. | Asset Income | Page 5-3 | ||
| Income Inclusions | Page 5-4 | |||
| Income Exclusions | Page 5-5 | |||
| c | Evaluate Asset Income | Page 5-8 | ||
| Guidelines for Determining Value of Assets | Page 5-8 | |||
| Asset Inclusions and Exclusions | Page 5-11 | |||
| Sample Asset Worksheets | Page 5-12 | |||
| d | Student Households | Page 5-14 | ||
| e | Felony Question | Page 5-15 | ||
| f | Sign a Release and Consent Form | Page 5-15 | ||
|
Step 2 |
Compare Income to LIHTC Limits | Page 5-16 | ||
| Screening Service Verifications | Page 5-16 | |||
| Step 3 | Verify All Annual Gross Income | Page 5-17 | ||
| Basic Methods of Income Verification | Page 5-17 | |||
| Section 8 Voucher Holders | Page 5-17 | |||
| Acceptable Methods for Verification | Page 5-19 | |||
|
Step 4 |
Obtain Tenant Income Certification | Page 5-21 | ||
| Annual Recertification | Page 5-22 | |||
| General Tax Credit Information | Page 5-23 | |||
| APPENDICES | ||||
| Appendix A |
OHFA's
LIHTC Income/Rent Limits (effective 1-28-04) OHFA's LIHTC Income/Rent Limits (effective 2-11-05) |
|||
| Appendix B |
2004 OHFA Utility
Allowance Chart (effective 10-1-04) 2005 OHFA Utility Allowance Chart (effective 10-1-05) |
|||
| Appendix C |
Sample
Rental Application Recertification Application |
|||
| Appendix D |
Tenant
Release and Consent Form Under $5,000 Asset Certification |
|||
| Appendix E |
Student Verification LIHTC Certification of Student Eligibility |
|||
| Appendix F |
Verification Forms Checklist Verification Forms Certification of Zero Income Employment Verification |
|||
| Appendix G | Tenant Income Certification | |||
| Appendix H | Quarterly Owner Certification | |||
| Appendix I | Owner's Certificate of Continuing Program Compliance (Annual Owner Certification) | |||
| Appendix J |
Unit
Data Sheet instructions Unit Data Sheets Are Legal Size Documents. Unit Data Sheet (PDF file) Unit Data Sheet (Excel file) |
|||
| Appendix K |
Sample 120
day, 90 day, 60 day, 30 day recert notices Tax Credit Lease Addendum |
|||
| Revised October 2005 | ||||