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Low-Income Housing Tax Credit (LIHTC) Compliance

The federal Low-Income Housing Tax Credit (LIHTC) Program is sponsored by the U.S. Treasury Department and 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 Compliance department monitors properties that have received LIHTC 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:

Income Restrictions
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.

Rent Restrictions
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.

Current Tax Credit Compliance forms and documents Forms and Documents
Current Tax Credit Compliance forms and documents.

Annual Tax Credit Reporting Process Annual Tax Credit Reporting Process
Current instructions for completing the annual reporting process.

ACH Payment Instructions ACH Payment Instructions

Annual Tax Credit Monitoring Fee Tax Credit Monitoring Fee Multiple Payments Log Sheet

Utility Allowance Estimates

Before using any utility allowance schedules posted on VHDA's website, please ensure that your local PHA has adopted VHDA utility allowances for use or that your only local PHA is a VHDA administered program agency.  Detailed information may be found in the documents below.

 

  
  
  
90DayNoticetoResidents-Sample.doc90 Day Notice to Residents - Sample11/7/2016
IRS-2008-UA-Reg-Update.pdfIRS 2008 Utility Allowance Federal Register Regulation11/4/2016
IRS-2009-UA-Reg-Update.pdfIRS 2009 Utility Allowance Federal Register Regulation11/3/2016
IRS-2016-UA-Reg-Update.pdfIRS 2016 Utility Allowance Federal Register Regulation11/2/2016
IRS-2019-UA-Regulation-Update.pdfIRS 2019 Utility Allowance Federal Register Regulation12/20/2019
Cover Letter - Sample.docxUtility Allowance Cover Letter - Sample9/24/2018
Bldg-by-Bldg-UAE-Spreadsheet.xlsxUtility Allowance Estimates by BIN Number Spreadsheet12/20/2019
VHDA-UA-Certification.pdfVHDA Utility Allowance Certification form effective March 1, 202012/20/2019
VHDA Utility Allowance Certification.docVHDA Utility Allowance Certification form terminates February 29, 20203/22/2018
VHDA-UA-Options-Procedures.pdfVHDA Utility Allowance Options and Procedures effective March 1, 202012/20/2019
VHDA Utility Allowance Options and Procedures.docxVHDA Utility Allowance Options and Procedures terminates February 29, 20203/22/2018

 

 

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