Benefits of LIHTC
By investing in affordable housing programs, a company can get _______
tax credits that reduce federal tax liability
The ____ ____ ____ ____ ____ program is the most important resource for creating affordable housing in the United States today. The program gives State and local agencies the equivalent of approximately $8 billion in annual budget authority to issue tax credits for the acquisition, rehabilitation, or new construction of rental housing targeted to lower-income households.
What is Low Income Housing Tax Credit
Rental property owners and _____ who provide affordable housing that meets the specific qualifications may qualify for the LIHTC program.
developers
An applicant for LIHTC doesn’t need good credit to qualify, but a poor credit report may make you ______.
ineligible
Low income housing tax credit is administered by this Agency
What is the Internal Revenue Service
Once an income test is set for potential new tenants, low- income families get the opportunity to _____, which essentially gives them some financial aid from affordable housing
pay less than fair market rent
If you live in subsidized housing, the housing authority is not your landlord. Subsidized housing is owned and operated by ____ ____ who receive subsidies in exchange for renting to low- and moderate-income people.
private owners
Owners and developers must agree to meet an ___ ____ for tenants to qualify for the low income housing tax credit
income test
If you have a poor track record as a tenant at other properties, you could be at risk of being rejected as a ____ _____.
qualifying tenant
To qualify for LIHTC a tenant's income must be no more than ______ of the median income in that area
What is 60%?
When it’s time for a company to develop affordable housing, depending on the county or city the housing is in, the said company could receive ____ that will help them with construction
abatements to help reduce project costs
Public ownership of housing, acquired or built with ____ ____— though run by local for-profit or nonprofit property managers—and rented at market prices.
government loans
In addition to the income test, owners or developers receiving the LIHTC must also meet a ___ ____ test
gross rent
Any person who has been evicted from federally assisted housing in the past ____ years for drug-related criminal activity would be denied, unless special circumstances are met.
3
This _______ is responsible for allocating low income housing tax credits to developers in their state
What is a state housing agency?
From a moral perspective, low income housing tax credits can reduce _____ when implemented in certain communities, which contributes to the greater good and general well being of these US citizens
homelessness
____ ownership is driven by profit, whereas in ____ ownership, the incentive is that workers feel like they are part of the company.
private/public
To earn and keep the tax credit, properties must earn and meet the income and gross rent tests for at least ___ years.
15
Those with a criminal record face much greater difficulty in qualifying, especially if it was a ______ related sentence.
violence or drug
To qualify for tax credits a developer must reserve a certain amount of units to ______
What are low income households?
In the initial stages of the Low Income Housing Tax Credit process, a company will help a developer finance a project that allows low income families a cheaper alternative living situation, in return, the developer _____
acquires much needed financing
Low-Income housing helps renters who cannot keep up with rising rents and marketing changes. A household is considered low income if it makes below __% of the median income in the local area.
80
To qualify to live in a LIHTC property, you must meet the income requirements of the property, which usually means you earn less than ____% of the AMI (area median income).
60
Putting false information on the application will likely _____ a potential tenant and get them into legal trouble.
disqualify
The document called the ______ that states must develop in order to distribute Low Income Housing Tax credits
What is the Qualified Allocation Plan?