Aspire to Average! - Part 2

How Does Income Averaging Work? On March 23, 2018, an omnibus spending bill, the Consolidated Appropriations Act of 2018, contained provisions that made significant changes to the Housing Tax Credit program. One of these provisions is a new minimum set-aside, which the law refers to as the Average Income Test. This series of articles discusses common questions about this option, what we know about it, and questions that are still unanswered. Series Outline Part 1. Which Projects Can Use Averaging and When? Part 2. How Does Income Averaging Work? Part 3. Benefits & Challenges Income Averaging Presents Part 4. The Available Unit Rule & Conclusion This second article will describe how income av

Quiz 04/16/2018: Minimum Set-Aside

In order to understand the new minimum set-aside, as discussed HERE, it is important to have a firm grip on how the minimum set-aside works. This quiz tests that knowledge. 1. The minimum set aside is based on the lesser of a percentage of square footage or number of units. True or False 3. For a project with a 20-50 minimum set-aside, what percentage of units can be at or below the 60% tax credit income limit, but above the 50% and be counted as tax credit? A. 0% B. 40% C. 50% D. 80% 2. After the 2018 Omnibus Tax Law change, which of the following is NOT a minimum set aside option? A. 20-50 B. 20-50 (average) C. 25-60 D. 25-60 (average) E. 40-60 (average) CLICK HERE for answers to this week

Aspire to Average! - Part 1

Which Projects Can Use Averaging and When? On March 23, 2018, an omnibus spending bill, the Consolidated Appropriations Act of 2018, contained provisions that made significant changes to the Housing Tax Credit program. One of these provisions is a new minimum set-aside, which the law refers to as the Average Income Test. This series of articles discusses common questions about this option, what we know about it, and questions that are still unanswered. Series Outline Part 1. Which Projects Can Use Averaging and When? Part 2. How Does Income Averaging Work? Part 3. Benefits & Challenges Income Averaging Presents Part 4. The Available Unit Rule & Conclusion This first article will deal with qu

Quiz 04/02/2018: Income Limits - Part 2

With HUD's release of the 2018 limits, this is the final in a two-part series on income limits. 1. A project placed in service in the year 2009 is eligible for the HERA Special tax credit limits, if these limits are listed as an option for the property's county. TRUE or FALSE 2. What type of financing at a tax credit property makes it ineligible for the Rural National Non-metropolitan limit? A. HUD section 8 B. Rural Development section 515 C. HOME Funds D. Tax exempt bonds 3. Which government agency defines "rural" areas potentially eligible for the rural National Non-metropolitan limits? A. HUD B. IRS C. USDA D. DOJ CLICK HERE for answers to this week's quiz

2018 HUD & Tax Credit Income Limits Are Out! Also a Bonus Tax Credit Tool!

HUD has released the 2018 income limits for their programs and the tax credit/bond programs. They are effective 04/01/2018. Please note: HOME is not covered by these limits. Those generally follow in a month or two. Watch this space for that announcement. The 2018 HUD AMI limits are HERE The 2018 MTSP limits are HERE Bonus! How do we know if HERA Special, National Nonmetropolitan Rural or held harmless limits apply to our tax credit properties? Helpful tool to assist selecting tax credit limits HERE

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