Reminder | 45-day LIHTC Income Limit Period Ends 6/28/2023. When is This Important?
Jun 27, 2023
According to the tax code, these must be implemented within 45 days for LIHTC properties - by 6/28/2023. In the past, this allowed a property to prepare in the case of a decrease in income (and rent) limits. In the modern era, this has less meaning for existing projects. This is because income limits hold harmless and will either stay the same or increase every year.
However, projects that are receiving an allocation of credits or that will be placed in service within these 45 days will be able to select the most favorable 2022 or 2023 limits to start with. For allocations in this timeframe, the limits selected will affect the gross rent floor. For projects that will place in service in the 45 days, it will affect the income and rent limits that the project will lease up with and hold harmless to in 2024, if necessary.
Please see this BLOG POST for a "Back to Basics" review of how to select the correct income limits for your LIHTC properties.
There is a very good chance that the topic of this post is covered in an online on-demand course at Costello University.
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