The federal Low-Income Housing Tax Credit (LIHTC) Program, sponsored by the U.S. Treasury Department, is administered in Virginia through VHDA. The program is authorized under Section 42 of the Internal Revenue Code of 1986 to encourage development of affordable rental housing by providing property owners with federal income tax credit.
VHDA’s Program Compliance department monitors properties that have received LIHTC for compliance by periodically reviewing that qualified units provide safe, decent and affordable housing and that eligible renters occupy these units.
To maintain qualified tax credits, in addition to other program requirements (we strongly encourage owners to review Section 42 of the IRS Code and their Extended Use Agreement for specific eligibility requirements), owners must meet the general guidelines listed below:
Tax credit qualification is available only for units rented to low-income occupants. A property must have at least 20% of its units rented to households with incomes of 50% or less than the area median income (AMI) OR at least 40% of the units rented to households with incomes of 60% or less than the AMI.
Rents on qualified tax credit units are restricted. Maximum allowable rent is based on the number of bedrooms and AMI as established annually by HUD. If a household pays for utilities, the maximum rent must be adjusted by the applicable utility allowance.
Owners and managers of tax credit properties must use the 2011 Maximum LIHTC Gross Rent Schedule to determine the maximum rents to be charged.
WCMS rounds all figures to the nearest dollar and this is causing some rent amounts to print on the TIC reflecting $1 more than the maximum tax credit rent allowed. If the rent amount printed on the WCMS-generated TIC is incorrect, please be reminded that management is still responsible for charging residents the correct rent amount.