We go over the basics of minimum set-aside requirement, including the types of elections available, how the minimum set-aside is calculated, and the consequences of noncompliance.
Three kinds of AI ad tools can get you into trouble when applied to housing. Savvy use of digital media for marketing purposes can be a useful tool for owners and managers, but it can also get them into fair housing trouble. The same artificial intelligence (AI) and machine learning algorithmic technologies that empower you to streamline and target your marketing can also be used, whether deliberately or inadvertently, to exclude groups the fair housing laws protect.
We review the proposed expansion of tenant rights and protections. Funds from the HOME program and LIHTCs are often used together to finance affordable rental housing sites. To establish affordable rents in many markets, a site’s rents may not be enough to pay off a conventional mortgage. As a result, the equity raised from tax credits may not be sufficient to provide all of the additional capital required by the site. Often, HOME funds can be used to finance the remaining gap.
Minor changes may indicate more significant updates to come. The IRS recently issued updated guidance for completing Form 8823, the form used by state and local LIHTC agencies to notify the IRS in the event of noncompliance or building disposition. The Guide for Completing Form 8823 was first published in 2007 and, at the time, it was a long-awaited companion piece to IRS Form 8823, as LIHTC program participants were urgently seeking IRS interpretation of the Section 42 regulations to better manage their sites.
As a site owner or manager, it’s a good idea to check the interior common areas of your tax credit site regularly for safety hazards. If you find problems, you must immediately correct them, or risk legal liability for any potential injuries to residents, their guests, or visitors to the site. In addition, violations of health, safety, or building codes in common areas can jeopardize valuable tax credits.
