As part of the Tax Reform Act of 1986, Congress provided an incentive tax credit to encourage private investment in low-income housing. Owners of certain residential rental property occupied by low-income tenants may claim this “low-income housing credit” over a 10-year period. This basic level course provides an overview of the Low-Income Housing Credit (LIHC), including: How to determine the applicable percentage for the LIHC; The application of the LIHC to new construction, rehabilitation, and federally subsidized projects; How to qualify for the LIHC; How to determine the maximum rent chargeable to low income tenants; How to calculate the eligible basis and qualified basis of an LIHC project; and Events that trigger recapture of the credit. 

Course Level: Basic

Course Prerequisites: None

Delivery Method: Self-study

After taking this course, you will be able to: 

• Understand the two different types of percentage rates offered by the Low Income Housing Credit, and which of the two rates will apply to a given project; 
• Understand how to meet the tests required to take advantage of the LIHC, and how to maintain eligibility throughout the 15-year compliance period; 
• Calculate the LIHC for an eligible project; and 
• Calculate recapture of an LIHC in the event the project fails to maintain eligibility for the credit at any point during the compliance period.

CPE

2.5

CLE

N/A