Intro to the LIHTC Program: Defining Eligible Basis & the Cost Certification Process Course

Course Type:

• Custom Course

Description:

This two-day course provides essential information for housing developers who anticipate using the Low-Income Housing Tax Credit (LIHTC) program to develop affordable housing. Utilizing lecture, class discussion, visual presentation, and case study exercises, Quadel covers determination of the eligible basis, minimum set aside and the applicable fraction, the calculation of the qualified basis, the valuation of tax credits, as well as how tax credits are used to attract investors to an affordable housing property.

The session details how the tax credit program interacts with other housing programs, and how the existence of a mixed-finance structure impacts the development and operation of affordable housing. The course explains the credit allocation process and state agencies’ application analysis process for tax credits to determine the credit allocation necessary to create a financially viable property .

Participants receive a copy of Quadel’s LIHTC course book. All of Quadel’s course books are designed to serve as “plain English” reference manuals to assist program staff in their daily functions more efficiently after attending the course.

Certification:

Currently no certification option available

Who Should Attend:

Developers, Syndications

Training Topics:

Low-Income Housing Tax Credit (LIHTC) Two-day Training
       

• Introduction to LIHTC Eligible Basis
  • Definition of Eligible Basis
  • Definition of a building
  • Costs included in Eligible Basis
  • Costs excluded from Eligible Basis
• Qualified Basis
  • Use of First Year Applicable Fraction to Determine Qualified Basis
  • The Two-Thirds Rule
• Case Study Exercises on Applicable Fraction and Qualified Basis
• 30% Boost in Eligible Basis
  • Qualified Census Tracts
  • Difficult to Develop Areas
  • Community Service Facilities
•  IRS
  • Revenue Rulings, Revenue Procedures,
  • Notices and TAMS
• Case Study Exercises on Eligible Basis
• Minimum Set Aside vs. Applicable Fraction
  • Definition of Minimum Set Aside
  • Definition of Applicable Fraction
  • First Year Applicable Fraction
  • Applicable Fraction in Acquisition/Rehab Properties
• Tax Credit Percentage
  • 9% Credits
  • 4% Credits
  • Monthly Publication of the Tax Credit Percentage
• Total Tax Credits and Equity Raised through Syndication of the Tax Credits
  • Average of First Year Applicable Fraction
  • Impact on First Year’s Tax Credits
• The Eleventh Year
• Case Study Exercises: Determining Total Tax Credits and Equity Raised through Syndication
• Impact on Eligible Basis, Tax Credit Percentage and Maximum Allowable Rent in Mixed-finance Tax Credit Properties
• Tax Credit Minimum Set Aside, Income Limit and Maximum Rent
  • Private Activity Bonds
  • The HOME Program
  • CDBG
  • Public Housing
• Project-based Section 8
  • RAP and Rent Supplement
  • Section 202/811 Supportive Housing Programs
  • Section 236 Mortgage Insurance
  • Housing Choice Vouchers
  • Federal Home Loan Bank Board’s Affordable Housing Program
  • Historic Tax Credits
• Cost Certification Process and Credit Allocation Process
  • Three Stages of the HFA Underwriting Process
  • Allocation of the Credits and IRS Form 8609
• Carryover Allocation of the 10% Test
• Case Study Exercises: Cost Certifications and the Credit Allocation Process
• Intersection of Eligible Basis, Qualified Basis and Compliance
  • Placing Credits in Service
  • Ineligible Existing Residents
  • Charges in Existing Residents
  • Available Unit Rule
  • Vacant Units
  • Transfers

*Day One schedule from 8:00 a.m. – 5:00 p.m. and Day-two from 8:30 – 4:30 with a lunch break from Noon – 1 p.m.  Participants are responsible for their own lunch.