INITIAL REACTION
PIS
PLACED IN SERVICE.
This is the date the unit/blg became eligible to begin claiming tax credits
MARRIED AND ELIGIBLE TO FILE A JOINT TAX RETURN - is this a student rule exception?
YES
Household members who are married & eligible to file jointly are exceptions to the student rule. The students do not have to live together to qualify.
EARNED INCOME, SUCH AS WAGES - is this counted as income?
YES - all earned income is counted
DEBIT EXPRESS/PAY CARDS - how is this verified?
CAN BE VERIFIED VIA ATM RECEIPT OR BANK CARD PRINTOUT
HOLD HARMLESS - what does this mean?
Per the HERA Act of 2008, when income and rent limits go down, based on Area Median Income, owners may stay at the same limits and not have to lower their rent or income limits
LURA
What is LAND USE RESTRICTION AGREEMENT.
Also called Restrictive Covenant, this document lists all the terms and conditions, such as number of units, minimum set-asides and other restrictions of the property
RECEIVING AFDC OR TANF - is this one of the student exceptions?
YES - Receiving AFDC or TANF is an exception
Both are programs under Title IV of the Social Security Act.
Receiving Social Security retirement, Social Security Disability and SSI income do NOT constitute an exception
UNEARNED INCOME, SUCH AS SOCIAL SECURITY - is this counted as income?
YES - Unearned income, such as social security, SSI, Workers Comp, Unemployment, etc is also counted as income
CHECKING ACCOUNT - how is this verified?
USE THE 6 MONTH AVG BALANCE provided by the banking establishment or use the average of 6 months banking statements
ELIGIBLE BASIS - what is this?
The cost incurred to develop and build a tax credit property, minus the cost of land.
Everything built with eligible basis money must be available to the residents, at no charge.
QAP
The QUALIFIED ALLOCATION PLAN (QAP) details the selection criteria and application requirements for Housing Credits and tax-exempt bonds. It lists all deadlines, application fees, restrictions, standards and requirements for rental developers to be eligible for funding
HOUSING CHOICE VOUCHER RECIPIENT - is this one of the student rule exceptions?
NO - holding a voucher is not a student rule exception.
BIRTHDAY CASH FROM GRANDMA - is this counted as income?
NO - sporadic gifts are not counted as income
SAVINGS ACCOUNT OR CERTIFICATE OF DEPOSIT - how is this verified
USE THE CURRENT BALANCE, provided by the banking establishment or use the current balance on the most recent bank statement
What is THE BRIGHT LINE?
The date of a letter sent by the state agency, notifying of an audit. Corrections can be made to files, up until the date of the letter without penalty.
HUD
HOUSING AND URBAN DEVELOPMENT
A SINGLE PARENT, WHO IS NOT THE DEPENDENT OF SOMEONE ELSE AND WHO HAS CHILDREN WHO CANNOT BE CLAIMED BY ANOTHER PARTY, OTHER THAN THE OTHER PARENT - is this one of the student exceptions.
YES - this is one of the student exceptions. If anyone outside the household (except the other parent) claims the children on taxes, then the single parent rule does not apply
CASH OR GOODS PROVIDED ON A RECURRING BASIS, BY SOMEONE OUTSIDE THE HOUSEHOLD -is this counted as income?
YES - recurring gifts/contributions are counted as income
DAILY DRIVER AUTOMOBILE - is this counted as an asset?
NO - personal possessions such as daily automobile and/or personal jewelry are not counted. Only items collected for investment purposes are counted as assets.
This establishes the minimum percentage of units in a project that must be low income in order to qualify for tax credits
What is the MINIMUM SET-ASIDE.
Minimum set-asides can be 20/50 or 40/60
Meaning, 20% of units must be leased to persons at 50% or lower AMI (or 40% of units at 60% AMI)
HERA
HOUSING & ECONOMIC RECOVERY ACT.
The HERA act of 2008 allowed tax credit properties use of the "Hold Harmless" to effectively increase revenue
FORMERLY HAD A CASE WITH CHILDREN'S SERVICES - is this an exception to the student rule?
NO - the applicant would have had to be in Foster Care in order to claim a student rule exception.
Placement in foster care is covered under Title IV of the Social Security Act, same as AFDC and TANF.
THE VALUE OF A HOUSING VOUCHER OR UTILITY REIMBURSEMENT CHECK -is this counted as income?
NO - vouchers and utility payments from the local PHA are not counted as income.
When assets are over $5000, what is the percentage used for imputing income from assets?
0.06%
The formula used to determine either the total number of units in the building or the total square footage in the building that is set aside for low income tax credit units - what is this called?
What is the APPLICABLE FRACTION