• 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
May 17, 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
  • May 17, 2025
  • Log In
  • Log Out
  • My Account
  • Subscribe
  • May 17, 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
May 17, 2025
  • Log In
  • Log Out
  • My Account
Home » FASB Updates Accounting Standards for LIHTC Sites

FASB Updates Accounting Standards for LIHTC Sites

Jan 22, 2014

The Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update No. 2014-01. This accounting standards update provides the guideline for the new accounting treatment the board approved in December for investments in qualified affordable housing properties. Many believe this change will increase the flow of capital to affordable housing.

These new standards affect how entities account for limited partnership investments in low-income housing tax credit (LIHTC) projects, allowing the cost of LIHTC investments to be amortized “below the line” in income tax expense along with the tax credits. 

If an investor elects to adopt this new accounting treatment, the method of amortizing an LIHTC investment changes from the effective yield method to the proportional amortization method, if the following conditions are met:

  • It is probable that the tax credits allocable to the investor will be available;
  • The investor does not participate in the operation of the investment, and substantially all of the projected benefits are from the tax credits and other tax benefits;
  • The investor's expected return is positive, based solely on the cash flows from the tax credit and other tax benefits; and
  • The investor holds a limited interest (LLP or LLC) in the affordable housing project for both legal and tax purposes, and the investor's liability is limited to its capital investment.

For LIHTCs that do not meet the criteria, the investment would be accounted for as either an equity or cost method investment.

The updated standards are effective for public businesses for annual periods and interim reporting periods beginning after Dec. 15, 2014. Private companies will be required to comply with the new standards by the same date for their annual reports, but they will have until after Dec. 15, 2015, to make changes to their quarterly statements.

To read the recently issued accounting standards update, click here.

 

 

Online Alerts
      • Related Articles

        Study: LIHTC Sites Project Savings for Energy-Efficient Apartments

        IRS Updates Population Estimates for LIHTC Allocations

        MHDC Tightens Dollars Available for LIHTC Sites

      Popular Stories

      • HUD Releases Final Rule for the HOME Investment Partnerships Program

        Jan 31, 2025
        Feature
        By Eric Yoo
      • Avoid 5 Fair Housing Pitfalls When Setting Amenity Rules

        Mar 31, 2025
        Feature
        By Eric Yoo
      • HUD Further Delays Certain Provisions of HOME Final Rule, Including Tenant Protections

        Apr 29, 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
      • May 17, 2025
      • Log In
      • Log Out
      • My Account
      • Subscribe
      • May 17, 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
      May 17, 2025
      • Log In
      • Log Out
      • My Account