• NY Apartment Law
  • Fair & Affordable Housing
  • Commercial Lease Law
  • Guidebooks
  • Archives
  • Main Articles
  • Dealing with…
  • Departments
  • eAlerts
  • Log In
  • Log Out
  • My Account
  • Subscribe
  • NY Apartment Law
  • New York Apartment Law Insider
  • New York Landlord V. Tenant
  • Co-Op & Condo Case Law Digest
  • New York Rent Regulation Checklist, Fourth Edition
  • 2025 New York City Apartment Management Checklist
  • Fair & Affordable Housing
  • Fair Housing Coach
  • Assisted Housing Management Insider
  • Tax Credit Housing Management Insider
  • Fair Housing Boot Camp. Basic Training For New Hires
  • Commercial Lease Law
  • Commercial Lease Law Insider
  • Best Commercial Lease Clauses, 17/e
  • Best Commercial Lease Clauses: Tenant's Edition
  • Best Commercial Lease Clauses, 17/e
  • Best Commercial Lease Clauses, 17/e
  • Main Articles
  • Features
  • Certification
  • Compliance
  • Income Calculations
  • Maintenance
  • Rents
  • Verification
  • Dealing with…
  • Dealing with Employees
  • Dealing with Households
  • Dealing with Owners
  • Dealing with the IRS
  • Dealing with State Housing Agency
  • Departments
  • Dos & Donts
  • In the News
  • Private Letter Rulings
  • Q&A
  • Ask the Insider
June 01, 2025
We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
The Habitat Group Logo
  • NY Apartment Law
    • New York Apartment Law Insider
    • New York Landlord V. Tenant
    • Co-Op & Condo Case Law Digest
    • New York Rent Regulation Checklist, Fourth Edition
    • 2025 New York City Apartment Management Checklist
  • Fair & Affordable Housing
    • Fair Housing Coach
    • Assisted Housing Management Insider
    • Tax Credit Housing Management Insider
    • Fair Housing Boot Camp. Basic Training For New Hires
  • Commercial Lease Law
    • Commercial Lease Law Insider
    • Best Commercial Lease Clauses, 17/e
      • Best Commercial Lease Clauses, 17/e
    • Best Commercial Lease Clauses: Tenant's Edition
  • Guidebooks
  • June 01, 2025
  • Log In
  • Log Out
  • My Account
  • Subscribe
  • June 01, 2025
tchmi.webp
  • Archives
  • Main Articles
    • Features
    • Certification
    • Compliance
    • Income Calculations
    • Maintenance
    • Rents
    • Verification
  • Dealing with…
    • Dealing with Employees
    • Dealing with Households
    • Dealing with Owners
    • Dealing with the IRS
    • Dealing with State Housing Agency
  • Departments
    • Dos & Donts
    • In the News
    • Private Letter Rulings
    • Q&A
    • Ask the Insider
  • eAlerts
Free Access
The Habitat Group Logo
June 01, 2025
  • Log In
  • Log Out
  • My Account
Home » Meet Two Requirements for Charging Parking Lot Fees

Meet Two Requirements for Charging Parking Lot Fees

Aug 1, 2007

Your tax credit site may offer a parking lot or other parking facility where your residents can keep their cars. If you, as a site owner or manager, want to charge residents a parking fee, you must proceed carefully, cautions tax credit consultant Karen A. Graham. Although the tax credit program's requirements don't specifically address parking lot fees, you may trigger noncompliance by charging them, she warns.

We will tell you the two requirements you must meet to charge parking lot fees. And if you are already charging residents fees to use your parking lot, it is not too late to stop charging fees if you determine that the fees are illegal.

Two Requirements

You can charge parking lot fees if you meet both of these requirements:

1. Parking lot isn't included in site's eligible basis. Many parking lots are considered common areas that the owner included in the site's eligible basis. If that's the case at your site, the tax credit law bars you from charging residents fees for their use, says Graham.

Owners determine which parts of their site are included in the eligible basis during the site's development period, Graham explains. If you are not sure whether your parking lot is part of your site's eligible basis, ask the owner or have the owner check with its accountant.

2. Parking lot is optional amenity. If you learn that your parking lot isn't part of your site's eligible basis, you still can't charge a fee unless the parking lot is an optional amenity. In most cases, an on-site parking lot is an optional amenity because residents have other choices for deciding where to park their cars.

But if residents have no choice, because there are no other lots nearby and overnight street parking is illegal in your neighborhood, then your parking lot is probably a necessary amenity and you can't charge a fee. If you are not sure, talk with your attorney or a tax credit consultant before charging fees.

What Fee to Charge

If you meet the above two requirements and can charge a fee, your only restriction on the amount of the fee is what the market demands, says Graham. For instance, if sites in your area charge $50 a month for parking, you can get away with charging this amount. But even if you charge more than neighboring sites charge, you won't trigger noncompliance.

EDITOR'S NOTE: If you don't meet the above two requirements and, therefore, can't charge a parking lot fee, you can increase your low-income households' rent to help cover the cost of maintaining your parking lot—but only to the extent that the rent doesn't exceed the maximum allowable rent, says Graham. If you already charge residents the maximum rents and you increase them to account for parking lot costs, you will bring your site into noncompliance for charging excessive rents.

Insider Source

Karen A. Graham, CPM, HCCP: President, Karen A. Graham Consulting, LLC, 6883 Fox Trot Ct., Liberty Township, OH 45044; (513) 755-7009; kagc@fuse.net.

Compliance / Dealing with the IRS
    • Related Articles

      Handle Parking Lot Fees Properly

      Tenant Not Responsible for Attack in Parking Lot

      Five Tips for Maximizing Parking Lot Safety

    • Related Events

      Use New Year’s Day building schedule(s) for building employees.

      Use Christmas Day schedule(s) for building employees.

      Perform indoor allergen hazard investigations.

    Popular Stories

    • How to Collect Higher Monthly Surcharges for Tenant-Installed Appliances

      Feb 26, 2025
      Feature
      By Eric Yoo
    • The May 1 Compliance Crunch Deadline: What You Need to File and Install

      Mar 28, 2025
      Feature
      By Eric Yoo
    • City Agency Proposes Updates to Window Guard Rules

      May 23, 2025
      Feature
      By Eric Yoo
    • Publications
      • Assisted Housing Management Insider
      • Commercial Lease Law Insider
      • Co-op & Condo Case Law Tracker Digest
      • Fair Housing Coach
      • New York Apartment Law Insider
      • New York Landlord v. Tenant
      • Tax Credit Housing Management Insider
    • Additional Links
      • Contact Us
      • Advertise
      • Group Subscriptions
      • Privacy Policy
    • Boards of Advisors
      • Assisted Housing Management Insider
      • Commercial Lease Law Insider
      • Fair Housing Coach
      • New York Apartment Law Insider
      • Tax Credit Housing Management Insider
    ©2025. All Rights Reserved. Content: The Habitat Group. CMS, Hosting & Web Development: ePublishing
    The Habitat Group Logo
    • NY Apartment Law
      • New York Apartment Law Insider
      • New York Landlord V. Tenant
      • Co-Op & Condo Case Law Digest
      • New York Rent Regulation Checklist, Fourth Edition
      • 2025 New York City Apartment Management Checklist
    • Fair & Affordable Housing
      • Fair Housing Coach
      • Assisted Housing Management Insider
      • Tax Credit Housing Management Insider
      • Fair Housing Boot Camp. Basic Training For New Hires
    • Commercial Lease Law
      • Commercial Lease Law Insider
      • Best Commercial Lease Clauses, 17/e
        • Best Commercial Lease Clauses, 17/e
      • Best Commercial Lease Clauses: Tenant's Edition
    • Guidebooks
    • June 01, 2025
    • Log In
    • Log Out
    • My Account
    • Subscribe
    • June 01, 2025
    tchmi.webp
    • Archives
    • Main Articles
      • Features
      • Certification
      • Compliance
      • Income Calculations
      • Maintenance
      • Rents
      • Verification
    • Dealing with…
      • Dealing with Employees
      • Dealing with Households
      • Dealing with Owners
      • Dealing with the IRS
      • Dealing with State Housing Agency
    • Departments
      • Dos & Donts
      • In the News
      • Private Letter Rulings
      • Q&A
      • Ask the Insider
    • eAlerts
    Free Access
    The Habitat Group Logo
    June 01, 2025
    • Log In
    • Log Out
    • My Account