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This document outlines the procedures, requirements, and goals for the Low Income Housing Tax Credit (LIHTC) program in Arizona, including application processes, project eligibility, compliance monitoring,

How to fill out lowincome housing tax credit

How to fill out Low‐Income Housing Tax Credit Program Qualified Allocation Plan

1. Review the program guidelines and eligibility requirements provided by the housing authority.
2. Gather necessary documentation required for the application, including income verification and project details.
3. Complete the application form accurately, ensuring all sections are filled out according to the instructions.
4. Provide a detailed project description, including the number of units, location, and target demographic.
5. Outline the financing structure for the project, including sources of funding and projected costs.
6. Prepare and attach any supporting documentation, such as site plans or letters of support from local agencies.
7. Submit the application by the designated deadline to the appropriate housing authority or agency.
8. Follow up to confirm receipt of the application and address any questions or additional requests from reviewers.

Who needs Low‐Income Housing Tax Credit Program Qualified Allocation Plan?

1. Developers and builders of affordable housing projects seeking financial assistance.
2. Non-profit organizations focused on providing low-income housing options.
3. State and local housing authorities managing affordable housing initiatives.
4. Investors interested in participating in low-income housing tax credit projects.

People Also Ask about

How do I claim low-income housing tax credit?

There are three ways to meet the income test: At least 20 percent of the project's units are occupied by tenants with an income of 50 percent or less of area median income adjusted for family size (AMI). At least 40 percent of the units are occupied by tenants with an income of 60 percent or less of AMI.

What is the 50% test for low income housing tax credit?

The test is to verify that 50% or more of the tax-exempt bond proceeds are used to finance the aggregate basis of any building and the land on which the building is located. Failure to meet the 50% Test is catastrophic to a low-income housing tax credit project.

Who does the low-income housing tax credit give federal income taxes to?

The LIHTC gives investors a dollar-for-dollar reduction in their federal tax liability in exchange for providing financing to develop affordable rental housing. Investors' equity contribution subsidizes low-income housing development, thus allowing some units to rent at below-market rates.

How does the low income housing tax credit work and who does it serve?

The Low-Income Housing Tax Credit (LIHTC) program has been the backbone of new affordable housing construction nationwide for the last 37 years. Developers who receive LIHTC financing are paid twice: they collect a developer fee, and they own the building.

How much does the low-income housing tax credit cost?

An LIHTC housing project must rent to tenants whose average income is below the area's median income, and this commitment must be maintained for a period of 15 years. The tax credit costs the U.S. government an estimated $13.5 billion every year.

How much is the housing credit?

The percentage is larger for new construction or substantial rehabilitation (roughly 9 percent but specified in the law as a 70 percent present value credit) than for properties acquired for rehabilitation or for projects funded using tax-exempt bonds (roughly 4 percent but specified as a 30 percent present value

What are qualified allocations?

(B)For purposes of subparagraph (A), the term “qualified allocation” means any allocation to a tax-exempt entity which— (i)is consistent with such entity's being allocated the same distributive share of each item of income, gain, loss, deduction, credit, and basis and such share remains the same during the entire

What is the federal tax credit for low income?

The Earned Income Tax Credit (EITC) helps low- to moderate-income workers and families get a tax break. If you qualify, you can use the credit to reduce the taxes you owe – and maybe increase your refund.

What is the maximum income for low-income housing?

The LIHTC gives investors a dollar-for-dollar reduction in their federal tax liability in exchange for providing financing to develop affordable rental housing. Investors' equity contribution subsidizes low-income housing development, thus allowing some units to rent at below-market rates.

For pdfFiller’s FAQs

What is Low‐Income Housing Tax Credit Program Qualified Allocation Plan?

The Low-Income Housing Tax Credit Program Qualified Allocation Plan (QAP) is a document that outlines the state housing agency's priorities and criteria for allocating tax credits to support the development of affordable rental housing for low-income individuals and families.

Who is required to file Low‐Income Housing Tax Credit Program Qualified Allocation Plan?

The state housing agencies are required to file a Qualified Allocation Plan to govern the allocation of Low-Income Housing Tax Credits within their respective states.

How to fill out Low‐Income Housing Tax Credit Program Qualified Allocation Plan?

To fill out the Low-Income Housing Tax Credit Program Qualified Allocation Plan, agencies must follow the prescribed format, provide information on housing needs, set priorities for funding, and include eligibility criteria and scoring methods for applicants.

What is the purpose of Low‐Income Housing Tax Credit Program Qualified Allocation Plan?

The purpose of the QAP is to ensure a transparent and consistent process for allocating tax credits, to address housing needs, and to promote the development of affordable housing in a manner that aligns with the state's housing objectives.

What information must be reported on Low‐Income Housing Tax Credit Program Qualified Allocation Plan?

The QAP must report information including the housing needs assessment, allocation priorities, selection criteria, scoring methods, compliance monitoring procedures, and any specific requirements for applicants seeking tax credits.