Thank you for watching!

I see that transferability does not apply to 45W credits, but question 1 still remains.

The developer/owner DOES get to keep the rents being paid by the tenants. Section 8 vouchers ARE allowed with the low-income housing tax credit incentive.

​@@NovogradacCPAs-- This helps Slum Lords. This is why I'm reporting my apartment management for claiming and keeping my Section 8 voucher, and been paying full rent. Scammers.

@@sauce816 Among the requirements for LIHTC property owners to keep the tax credits they're claiming over a 15-year compliance period is maintaining the property's physical condition. New LIHTC properties are supposed to be indistinguishable in quality from market-rate properties in their area. The rent a Section 8 voucher holder pays is based on their adjusted household income. The voucher/subsidy pays the difference between that and a higher payment standard for a unit that size in the area.

Thank you for your question. The short answer is that the fund doesn’t need to file Form 8996 to self-certify as a QOF until the tax year in which it receives its first gain-deferred investment. So if it hasn’t raised any capital thru the end of 2023, it would not need to file a Form 8996 for tax year 2023. However, if it received any gain-deferred investments in Q4 2023, then it would need to file Form 8996. Please contact Jason Watkins with any further questions. You can reach him at [email protected].

Thank you@@NovogradacCPAs

Their ownership interest in the the partnership provides them ownership in the project. However, when investors look to exit the partnership around Year 12 (after they've claimed their credits), they leave the buildings and other assets with the developer.

I'm looking forward to working with you all down the road on a NMTC deal.

Hi Sharon. Thanks for reaching out. This video (among others) was an excerpt from a multi-hour webinar. The video was embedded in and/or linked to some promotional emails for the full webinar recording (for purchase) as well as linked on the registration page as an example of the presentation style. Since we weren't going to show the entire webinar in KZbin (our business model is to charge for webinars), we wanted to show a single concept as a demonstration of the instruction style of the for-purchase webinars. The instructor completes one point and is transitioning to another concept when the video fades out and shows the "www.novoco.com/webinars." Our intent is to incentivize people to check out where they can order a copy of the full webinar (or ones like it). However, it appears to have induced a different reaction. Apologies. Nearly all of our instructor intro and excerpt/teaser videos nowadays are hosted only on the webinar registration web page.

Hi Ramona. The floor space fraction is calculated by dividing the floor space of all LIHTC qualified units in a building by the floor space of all residential rental units in a building. The target applicable fraction is determined by owners during planning and must be large enough to satisfy the qualified basis on the building's Form 8609 necessary to generate maximum credits. If that applicable fraction, for example, needs to be 80% to generate maximum credits, the lesser of the unit fraction or the floor space fraction must be at least 80%.

Hi Jollet. Novogradac hosts an 11-hour online LIHTC property compliance workshop with an accompanying exam that enables those who pass it to earn their Novogradac Property Compliance Certification (NPCC). You can learn more about the NPCC at training.novoco.com/pages/npcc

Hi Pamela. From one of our NMTC professionals: The QLICI loans actually have a below market interest rate as a result of the investor equity being part of the source of those funds. The leverage lender that provides the other part of the source funds (per the diagram) is often the project sponsor or is an entity connected to the project sponsor who has an interest in getting the project completed and isn’t necessarily interested in the monetary benefit derived from the leverage loan. The leverage loan can be comprised of various sources of funds (e.g. capital campaign funds, grants, 3rd party loans, etc.) that are the responsibility of the sponsoring organization of the project. If a 3rd party loan is included in leverage loan sources it is generally a market-rate loan that the sponsoring organization will cover rather than the NMTC project borrower.

@@NovogradacCPAs oh wow, thanks! I work for Citi and literally needed to understand this for my job.

Having been a full-time student for any part of 5 calendar months during the year (Jan-May) already taints that year as fare as the full-time student rule goes, even if you graduated and never enrolled again. This is if the household is comprised entirely of full-time students.

That is still portions of five months during the calendar year

And I'll swoop in and buy the loans from the bank when you lose your ass. 😂

The LIHTC incentive does not require/allow landlords to evict households who are initially income qualified if their income subsequently increases. However, if the household failed to report income during their initial income certification prior to move-in, the landlord will have grounds to evict them.

God bless your heart . Thanks for giving me some peace of mind I recently got a notice on my door from my landlord indicating that my property that I have been living for over 20 years is going to become LIHTC (an other housing program) . And since I pay market rent right now that I will be asked to move because I’m no longer qualified under the new program that they’re in I’m thinking that the people that are sending out these notices are not fully educated as you are

@Novgradac my property is currently consider subsidized which I pay market right now

Hi, this topic is still relevant up today. Thanks for explaining the LITHC program thoroughly. My income is over the 140 percent limit, and the lease manager keeps calling to offer me market rate apartments. They usually add my state income, which is always higher than my federal gross income, along with my 457 plan interest that goes into the retirement system. I am still working and do not have access to that money unless I take out a loan and pay it back. The thing is, those income looks good on paper, but it is not my actual income. I can't take money out of my 457 unless it's a loan and pay back. I don't understand why they added this to my income. Anyway, they always call and tell me that they are getting ready to do eviction, and I am the only one who is keeping them from renting their market rate apartment. I wish I had the income to go and buy my own place. Sometimes, I feel like I am burdened to them. At least, that's how they make me feel. Now, I know a little more about the policy, and I feel much at ease.