Revised Tax Credit Compliance Manual - Revised October 2009
 

Table of Contents
1 OK Affordable Housing Compliance Manual Overview Page I
2. The Low Income Housing Tax Credit Program Page II
3. Key Program Documents Page III
4. 2008 Revision List Page IV
  5. 2009 August Revision List Page V
  6. 2009 October Revision List Page VII
   
Chapter One    The Rules, Requirements, and Resources Page 1-1
1.   IRC Section 42 "Code"
2. OHFA Chapter 36 Program Rules
3. 24 CFR Part 5 Student Annual Income
4. Recommended Practices in Compliance Monitoring (NCSHA)  
       (Standardized forms required January 1, 2002)
Chapter Two     OHFA's Responsibilities Page 2-1
Chapter Three  Owner's Responsibilities Page 3-1
1) Reports   Page 3-1
A.Quarterly Owner Certification  Page 3-1
B. Annual Owner Certification  Page 3-2
      HUD Demographic Data Collection Page 3-2
C. Unit Data Sheet  Page 3-2
D. Management and Ownership Changes Page 3-3
    E. Casualty Loss Page 3-4
2) Fees and Tax Forms  Page 3-4
    A. Compliance Monitoring Fees Page 3-4
B. Tax Forms (8586, 8609 & Schedule A-8609) Page 3-4
3) Record Keeping  Page 3-5
A. Tenant Files Page 3-5
B. Development Files  Page 3-5
4)  Occupancy Rules  Page 3-6
  A.      Project Occupancy Restrictions Page 3-6
  B.      Comp with Fair Housing and Equal Opportunity Laws Page 3-6
    C.      Change in Family Size Page 3-7
  D.      Transfers  Page 3-7
E. Lease Requirements  Page 3-8
F. Student Households  Page 3-8
G. Available Unit Rule  Page 3-8
H. Vacant Unit Rule  Page 3-9
I. Buildings With Four or Fewer Units  Page 3-10
J. Equality Between Low-Income and Market-Rate Units  Page 3-10
K. Employee/Mgr/Exempt-Staff Units Page 3-10
    L.      Model Units Page 3-11
    M.     Homeless Units Page 3-11
    N.      Supportive Services and Programs Page 3-12
    O.      Special Needs Units Page 3-12
5)  Placing a Property in Service Page 3-13
  A.      New Construction Page 3-13
  B.      Acquisition/Rehab Page 3-13
    C.      Rev Proc 2003-82 Page 3-14
6) Determining Family Income  Page 3-14
         
Chapter Four  Rent Restrictions and Lease Requirements Page 4-1
1) Rent Restrictions  Page 4-1
2) Maximum Allowable Rents for TC Units  Page 4-1
  3) Rental Application Fees Page 4-2
4) Optional Services Available to Residents  Page 4-2
5) Charges for Development Services  Page 4-2
6) Rents for Units Receiving Assistance  Page 4-2
7) Changes Affecting Allowable Rents for TC Units  Page 4-3
A. Annual Revisions to LIHTC Rent Limits  Page 4-3
      HUD Hold Harmless "HERA Special" Limits Page 4-3
B. Changes in Local Utility Allowances  Page 4-4
C. Adjusting Unit Rents  Page 4-5
D. Rent Floors  Page 4-5
E. Rents for TC Units with Over-Income Tenants  Page 4-6
1.           Mixed Income Developments  Page 4-6
2.           100 Percent Low-Income Developments  Page 4-6
F. Developments Receiving other Forms of Assistance  Page 4-7
8) Utility Allowances  Page 4-7
    Utility Allowance Options Page 4-8
    Notification Requirements Page 4-9
9) Dwelling Lease Requirements  Page 4-10
A. Term of Lease  Page 4-10
B. Prohibited Lease Requirements  Page 4-11
C. State and Local Law  Page 4-12
Chapter Five  Determining Tenant Eligibility  Page 5-1

Step 1

 Complete Rental Application  Page 5-2
A. Determine Household Eligibility  Page 5-2
B. Evaluate Annual Income  Page 5-2
. 1   Regular Income Page 5-3
  2   Asset Income  Page 5-3
     Income Inclusions  Page 5-4
     Income Exclusions  Page 5-5
C. Evaluate Asset Income   Page 5-8
     Guidelines for Determining Value of Assets  Page 5-8
     Asset Inclusions and Exclusions  Page 5-11
     Sample Asset Worksheets  Page 5-12
D. Student Households  Page 5-14
E. Felony Question  Page 5-15
F. Sign a Release and Consent Form  Page 5-16

Step 2

 Compare Income to LIHTC Limits  Page 5-16
Step 3 Verify All Annual Gross Income  Page 5-16
Basic Methods of Income Verification  Page 5-16
Section 8 Voucher Holders Page 5-17
Acceptable Methods for Verification  Page 5-19

Step 4

 Obtain Tenant Income Certification  Page 5-21
     Annual Recertification  Page 5-21
APPENDICES
Appendix A OHFA's LIHTC Income/Rent Limits (effective 2-13-08)
OHFA's Income/Rent Limits (effective 3-19-09)
Appendix B 2008 OHFA Utility Allowance Chart (effective 10-1-08)
2009 OHFA Utility Allowance Chart (effective 10-1-09)
Appendix C Tenant Release and Consent Form
Appendix D Under $5,000 Asset Certification
Appendix E Student Verification
LIHTC Certification of Student Eligibility
Student Financial Aid Verification
Appendix F Verification Forms Checklist
Verification Forms
Certification of Zero Income
Employment Verification        
Appendix G Tenant Income Certification
Appendix H Quarterly Owner Certification
Appendix I Owner's Certificate of Continuing Program Compliance (Annual Owner Certification)
Non-Profit Addendum to AOC
Appendix J Unit Data Sheet instructions
Unit Data Sheet (PDF file)
Unit Data Sheet (Excel file)
Appendix K Sample 120 day, 90 day, 60 day, 30 day recert notices
Tax Credit Lease Addendum
Revised October 2009