WebEssentials of LIHTC: Average Income Minimum Set-Aside The 2024 federal guidance provided much-needed clarification for the average income minimum set-aside test. Learn how to apply the updates to your project, along with how to calculate the applicable fraction and meet the average income test. WebOct 20, 2024 · On October 12, 2024, the Department of the Treasury released the Low Income Housing Tax Credit (LIHTC) final regulations related to the income-averaging test …
Section 42, Low-Income Housing Credit Average Income Test …
WebOct 20, 2024 · Some revisions to LIHTC income-averaging in the final rule include: Unit designations: Unit designations can change based on the activity of a tenant in instances of conflicts with federal laws, guidance issued by the governing State Housing Finance Agency, and through tenant transfers. WebJun 17, 2024 · The Consolidated Appropriations Act of 2024 created a new minimum set aside election for new Low Income Housing Tax Credit (LIHTC) projects. Income averaging is one of the set-aside elections intended to determine whether a project qualifies as a low-income housing project and would receive LIHTC. chrysalis counselling reviews
AHTCC Testifies in IRS Hearing on Income ... - Tax Credit Coalition
WebOct 12, 2024 · Section 42 (g) (1) (C) (ii) (II) requires the average of the imputed income limitations designated under section 42 (g) (1) (C) (ii) (I) not to exceed 60 percent of AMGI. Finally, section 42 (g) (1) (C) (ii) (III) requires the imputed income limitation designated for any unit to be 20, 30, 40, 50, 60, 70, or 80 percent of AMGI. WebA development qualifies for low-income housing tax credits if it is residential rental property and meets one of the following requirements: At least 20% or more of the residential units in the development are both rent restricted and occupied by individuals whose income is 50% or less of the area median gross income (AMGI)*, or WebDec 1, 2024 · Pursuant to income averaging, an LIHTC project can designate units that are a mix of unit percentages, ranging from 20% to 80% of AMGI, and count all of them toward meeting the 40-60 minimum set aside requirements, provided (A) the average of these imputed income limitations does not exceed 60%, and (B) 40% or more of the units in the … derrick hutchins ministry today