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Low Income Housing Tax Credits
Our Low Income Housing Tax Credit compliance courses are continually updated to reflect the most current requirements. We offer courses suitable for agents and owners as well as courses for both new and experienced on-site staff. Select a course to find out the available formats and to read the course description. For a complete list of courses, download our Signature Course Catalog.
HOTMA: An Overview for Tax Credit Properties (General or State-Specific)
Format:
Focus: An introduction to HOTMA and its Impact on Tax Credit Occupancy including how HOTMA affects Tax Credit properties such as changes to income and asset inclusions and calculation methodologies and tenant income verification requirements. The course includes recommendations on how combined funding properties can best navigate the changes. The class includes an overview of what the various states are doing to implement and comply with HOTMA. The class can be state specific for groups who are working in a particular state that has totally implemented HOTMA at the time of the course offering.
Housing Credit Management – with or without SHCM Exam 3 4-hour webinars or 2-days in person
Format:
Focus: Comprehensive Housing Credit management course for those wanting a practical understanding of the tax credit program including program regulations, unit eligibility, applicant eligibility and certification, documentation and record-keeping. Available as a SHCM Exam Prep course meeting the 12-Hours course work requirement of NAHMA/NAA’s prestigious certification program.
Tax Credit Occupancy: Back to Basics 4 hours in 2 2-hour webinars or 4 hours in person workshop
Format:
Focus: For newly hired managers or those with no Tax Credit experience as well as those needing a refresher course on the basics and the latest updates. This course translates the complexity of the program into plain language that even the newest manager can understand – answering the questions: “What is a housing credit?” and “How does it differ from other programs?” The course covers eligibility (including the student rule), the application process, calculating and verifying income, and maintaining compliance. Mini-quizzes and case studies are included to reinforce the learning. Students will need a calculator.
Tax Credit Occupancy: Intermediate 6 hours in 2 3-hour webinars or 6 hours in person workshop
Format:
Focus: Reviews six key requirements for managing an LIHTC property, plus qualifying applicants, annual recertification, and tips on maintaining compliance. Includes the rules for the next available unit, vacant units, and unit transfers as well as how fair housing rules about criminal background screening and VAWA impact LIHTC properties, Mini-quizzes and case studies are included to reinforce the learning.
First-Year Files and Compliance
Format:
Focus: “First Year Files” are invaluable and irreplaceable. They are the proof that the tax credits awarded to investors, who provided millions of dollars to the property’s development, acquisition, or rehab, have been rightfully earned and justifiably taken. What are the First Year Files? What must they contain? Where should they be kept? How long should they be retained? And why are they so important? Come to this session and find out.
LIHTC “Unit Rules” Available Unit, Vacant Unit, Unit Transfer
Format:
Focus: Master the special unit rules of the tax credit program: The Available Unit rule, The Vacant Unit rule, The Unit Transfer rule and the Manager Unit rules. A straightforward, practical discussion of the rules that make the tax credit program challenging – especially on mixed income properties - with lots of examples and the opportunity to practice applying these rules in real-life situations.
LIHTC Recertification In-Depth
Format:
Focus: Recertification can be a difficult task for the tax credit property: “HUD isn’t paying my rent so why do I have to recertify?” This course takes an in-depth look at the requirements and timing of annual and other recertification’s as well as the 140% (Next Available Unit) Rule, unit transfers, and changes in household composition. We will also tackle the special challenges with resyndication and for properties with blended financing, and prevention and cures for delinquent annuals.
Self-Auditing Tax Credit Files
Format:
Focus: What is a “self-audit” and when should management do one? And how does the manager correct non-compliance if they find it? The instructor will highlight the issues monitoring agencies zero in on – incomplete applications, delinquent recertifications, insufficient documentation, income calculation errors, contradictions within a verification, underestimating anticipated income, late verifications and missing or late signatures. Participants will have a chance to try out their auditing skills.
Tax Credit Calculations and Verifications
Format:
Focus: Because we don’t do “interims” on a tax credit tenant, anticipating annual income (especially on move-in) is critical. This means we need consistency and accuracy in interpreting verifications and calculating the income that is disclosed and not be tempted to over-calculate income “just to be safe.” This session will cover best practices for verifications and calculations, what the IRS and the state monitoring agent require, and how to defend the calculations in a file audit. Includes Gig Income and New Age assets.
Section 42 Non-Compliance: How it Happens and How to Repair
Format:
Focus: The IRS 8823 (Noncompliance) Form lists the 17 types of non-compliance that state agencies must report to the IRS. Learn the common mistakes that lead to non-compliance, how to avoid them, how to repair them if they occur and the penalties that are incurred for each.
Understanding the Section 42/LIHTC Average Income Test
Format:
Focus: On October 12, 2022, the IRS published “final and temporary regulations” regarding the new minimum set-aside known as the Average Income Test. This set-aside is intended to allow for mixed-income housing and makes it possible to rent some units to individuals and families with incomes above 60% of median. We will explain how this set-aside differs from the 20 @ 50 and 40 @ 60 minimum set asides. You will learn how to calculate the set-aside and how the applicable fraction applies when this set-aside is in place. We will also review the most recent information from the states in your region regarding their requirements for the Average Income Set-Aside.
Managing the LIHTC Utility Allowance
Format:
Focus: Making a mistake in the calculation or timing of a utility allowance and/or failing to analyze the effect on tenant rents can be costly. Participants will learn how utility allowances affect rents, what methods are allowed by the IRS and by the state, how they work, what makes the most sense for the property, If, when, why and how owners can or should change the method they are using, how other funding sources /HUD/RD/HOME) affect their choices, and management’s responsibilities to the tenant, to the owner, and the monitoring agency.
Master the Applicant Interview (Protect the Owner’s Credits)
Format:
Focus: The LIHTC program is unforgiving when an unqualified applicant is moved into a housing credit unit. There are no second chances once they have moved them in and a well-conducted interview is insurance against non-compliance. This course covers how the applicant interview is key to Section 42 “due diligence”, how to establish rapport, gain trust, and ask the right questions in the right way while ensuring a consistent scripted approach to prevent costly fair housing mistakes. Includes valuable tips on interviewing persons with various types of disabilities and how to respond to situations and conversations that commonly occur.