Q & A | LIHTC Student Rules and Foster Agencies from Another Country

Question from a Blog Reader

"We have an applicant for an LIHTC unit who is a full-time student and is the only one in the household. She doesn't qualify for any of the exceptions, except maybe the one for former fosters. She was in foster care in another country before being brought over to the United States and being adopted when she was a child. I told her that we would have to have documentation of her former foster status, but she is not sure she can get it. I wanted to see if you have ever had this before and if you did what did you do?"

Answer

Summary: She will not qualify for the student exception and is not eligible.

Unfortunately, the foster exception at IRC Sec 42(i)(3)(D)(II) describes an exemption to the LIHTC student rule for “a student who was previously under the care and placement responsibility of the State agency responsible for administering a plan under part B or part E of title IV of the Social Security Act.” This is a very specifically worded provision and a foster program in another country is not eligible. 

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