Podcast
Questions and Answers
What are the requirements for units that support tax credits?
What are the requirements for units that support tax credits?
- Income limits
- Rent limits
- Safe and sanitary
- All of the above (correct)
What is a general partner?
What is a general partner?
An owner (partner) who has unlimited liability and is active in managing the firm.
What is a limited partnership (LP)?
What is a limited partnership (LP)?
A partnership where one or more partners have limited liability and at least one (the general partner) has unlimited liability.
What is the role of a syndicator?
What is the role of a syndicator?
What are State HFAs often called?
What are State HFAs often called?
What are the two primary functions of State HFAs as used by the IRS?
What are the two primary functions of State HFAs as used by the IRS?
How is the ceiling on the allocation amount determined?
How is the ceiling on the allocation amount determined?
What document contains the allocation rules?
What document contains the allocation rules?
How are applications scored for tax credits?
How are applications scored for tax credits?
What form is used for reporting non-compliance to the IRS?
What form is used for reporting non-compliance to the IRS?
The states use ______ for local code for physical inspections.
The states use ______ for local code for physical inspections.
How is household income for tax credit properties determined?
How is household income for tax credit properties determined?
What changes when HUD modifies the document?
What changes when HUD modifies the document?
What documents must be included for tenant income certification?
What documents must be included for tenant income certification?
Student status exemptions include conditions like ______.
Student status exemptions include conditions like ______.
When must student status be verified?
When must student status be verified?
Who is counted in the household?
Who is counted in the household?
Who is NOT included in the household?
Who is NOT included in the household?
Define a live-in attendant.
Define a live-in attendant.
What constitutes annual income?
What constitutes annual income?
What is considered unearned income?
What is considered unearned income?
What is earned income?
What is earned income?
What should be done when subtracting members?
What should be done when subtracting members?
What should be done when adding new members?
What should be done when adding new members?
What are the three basic types of verification available in order of preference?
What are the three basic types of verification available in order of preference?
What to do if third party verification cannot be gathered?
What to do if third party verification cannot be gathered?
40 hours a week, hourly pay equals what total hours in a year?
40 hours a week, hourly pay equals what total hours in a year?
How many weeks are in a year?
How many weeks are in a year?
How many pay periods are there in a bi-weekly pay schedule?
How many pay periods are there in a bi-weekly pay schedule?
How many pay periods are in a semi-monthly pay schedule?
How many pay periods are in a semi-monthly pay schedule?
How many pay periods are in a monthly pay schedule?
How many pay periods are in a monthly pay schedule?
What to do when a raise is indicated on the verification of employment?
What to do when a raise is indicated on the verification of employment?
What are the IRS 1040 schedules C, E, F for?
What are the IRS 1040 schedules C, E, F for?
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Study Notes
Tax Credit Units Requirements
- Income limits, rent limits, and safe and sanitary conditions are essential for tax credit units.
General Partner
- Owners with unlimited liability.
- Actively involved in managing the firm.
Limited Partnership (LP)
- Composed of at least one general partner with unlimited liability.
- Limited partners are passive investors without management roles.
Syndicator
- Facilitates the relationship between general partners (GP) and limited partners (LP).
- Combines multiple projects into a single fund, offering shares to individual investors.
State HFAs
- Also known as state agencies or state allocating agencies.
Functions of State HFAs
- Responsible for allocation of tax credits.
- Conduct compliance monitoring according to IRS requirements.
Allocation Ceiling
- Adjusted yearly for inflation, based on state population.
Allocation Rules
- Detailed in the Qualified Allocation Plan (QAP).
Application Scoring
- Applications are scored based on the QAP; credits are awarded accordingly.
Noncompliance Reporting
- Reported to the IRS using Form 8823.
Physical Inspection Standards
- Uniform Physical Condition Standards (UPCS) are used for local code inspections.
Household Income Determination
- Consistent with Section 8 housing rules.
HUD Handbook Impact
- Changes in HUD handbook 4350.3 affect tax credit income and asset rules.
Required Tenant Documentation
- Must include household application, income verification, student status, and Tenant Income Certification (TIC).
Exemptions for Student Status
- Exemptions apply for married couples, single parents with minors, TANF recipients, former foster care recipients, and individuals receiving similar assistance.
Student Status Verification
- Required at move-in and annually thereafter.
Household Member Inclusion
- Includes temporarily absent children, joint custody children, foster children, unborn children, and other family members temporarily away.
Exclusion from Household Count
- Live-in attendants are not included.
Definition of Live-In Attendant
- Resides with elderly or disabled persons for essential care, not obligated for their support.
Annual Income Definition
- Total of earned income, unearned income, and income from assets before deductions (gross income).
Types of Income
- Unearned Income: Benefits and unemployment income.
- Earned Income: Income from jobs or wages.
Member Adjustment Policy
- Subtract members at the next recertification; verify and add income of new members immediately.
Verification Types Preference
- Third-party verification from the source is preferred, followed by documentation review, then family certification.
Document Use When Verification Fails
- Original documents are accepted if third-party verification is unattainable.
Weekly Income Calculation
- 40 hours per week equals 2,080 hours annually (52 weeks).
Pay Periods
- Weekly wages calculated over 52 weeks.
- Bi-weekly wages calculated over 26 pay periods.
- Semi-monthly wages calculated over 24 pay periods.
- Monthly wages calculated over 12 pay periods.
Raise Impact on Calculations
- Use the effective raise date for income calculations during certification.
IRS Schedules for Income Reporting
- Schedule C for business income, Schedule E for rental income, Schedule F for farm income.
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