Housing Credit Reference Guide
This online reference guide includes links to reference materials useful for HFA Housing Credit program administrators.
1. NCSHA Housing Credit Allocating Agency Reference Materials
- NCSHA Matrix on IRS Regulatory Relief Available During COVID-19 Pandemic (2021)
- NCSHA Housing Credit Compliance Model Forms (2019)
- NCSHA Income Averaging FAQ (2018)
- NCSHA Recommended Practices in Housing Credit Administration (2017)
2. Internal Revenue Code Section 42 (Housing Credit Statute)
3. Housing Credit Guidance
3i. IRS Final Regulations
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Limitation on low-incoming Housing Credit allowed with respect to qualified low-income buildings receiving Housing Credit allocations from a State or local Housing Credit Agency
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Low-Income Housing Credit
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Waiver of Ten-Year Rule
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Buildings financed with proceeds from a loan under an Affordable Housing Program established pursuant to section 721 of FIRREA
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Inapplicability of Section 183: “Hobby Loss”
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Tax Credit Compliance Monitoring
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| IRS Regulation 1.42-5 |
Tax Credit Compliance Monitoring Proposed Rule
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Building Qualifying for Carryover Allocations
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Election of Appropriate Percentage Month
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General Public Use
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Utility Allowance
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Provision of Services
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Effective Dates and Transitional Rules
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Administrative Errors and Omissions
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Allocation Rules for Post- 1989 Ceiling Amounts
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Available Unit Rule
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Eligible Basis Reduced by Federal Grants
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| Qualified Allocation Plan | |
| IRS Regulation 1.42-18 | Qualified Contract Provisions |
3ii. IRS Proposed Regulations
- Housing Credit Average Income Test (Taxpayers may rely on the proposed amendment to §1.42-15 as of October 30, 2020 until 60 days after the date final regulations are published, provided the taxpayer follows the rules in proposed §1.42-15 in their entirety. Taxpayers may rely on proposed §1.42-19 for taxable years beginning after October 30, 2020 until the date final regulations are published, provided the taxpayer follows the rules in proposed §1.42-19 in their entirety.)
- Housing Credit Compliance Monitoring Regulations (Agencies may rely on these proposed regulations as of February 26, 2019 until December 31 of the calendar year following the year that contains the date final regulations are published.)
3iii. Most Recent Recurring Housing Credit Publications
- HUD Report: Understanding Whom the LIHTC Serves: Data on Tenants in LIHTC Units as of December 31, 2017
- Monthly Publication of Applicable Federal Rates
- IRS Revenue Procedure 2020-45 (2021 Housing Credit and Housing Bond Volume Caps)
- IRS Notice 2020-10 (2020 Population Figures)
- IRS Revenue Procedure 2020-42 (2020 National Pool)
- Housing Credit Income Limit Materials
- Designation of Difficult Development Areas and Qualified Census Tracts
3iv. IRS Revenue Rulings
- IRS Revenue Ruling 2020-4 (Income Limits Computation for Average Income Test)
- IRS Revenue Ruling 2016-29 (Allocation Rules for Post-2000 State Housing Credit Ceiling Amount)
- IRS Revenue Ruling 2008-6 (Eligible Basis Reduced By Federal Grants)
- IRS Revenue Ruling 2004-82 (Low-Income Housing Credit Q&A)
- IRS Revenue Ruling 2003-77 (Community Service Facility)
- IRS Revenue Ruling 2002-65 (Eligible basis reduced by federal grants)
- IRS Revenue Ruling 2002-9 (Inclusion of Impact Fees in Eligible Basis)
- IRS Revenue Ruling 98-49 (Effect of SRO and Shelter Plus Care Payments on Eligible Basis)
- IRS Revenue Ruling 98-47 (Tax-Exempt Bond Ruling on Assisted Living)
- IRS Revenue Ruling 97-4 (Clarification of Section 502(e)(3) Transition Relief)
- IRS Revenue Ruling 96-35 (FEMA Grants and Loans)
- IRS Revenue Ruling 95-49 (Tenant Right of First Refusal)
- IRS Revenue Ruling 94-57 (Changes in Area Median Gross Income)
- IRS Revenue Ruling 92- 61 (Treatment of Resident Manager’s Unit)
- IRS Revenue Ruling 91-38 (Low-Income Housing Credit Questions and Answers)
- IRS Revenue Ruling 90-89 (Minimum Set-Aside Requirements)
- IRS Revenue Ruling 90- 60 (Recapture Bonds)
3v. IRS Revenue Procedures
- IRS Revenue Procedure 2020-23 (Amended Partnership Returns)
- IRS Revenue Procedure 2019-45 (Procedure for Requests of Unused Housing Credit Carryover from the National Pool)
- IRS Revenue Procedure 2019-17 (General Public Use Requirements for Bond-Financed Housing Credit Properties/Preference for Veterans)
- IRS Revenue Procedure 2014-50 (Disaster Relief Guidance under Section 142 for Bond Properties and Bond-Financed Housing Credit Properties)
- IRS Revenue Procedure 2014-49 (Disaster Relief under Section 42 for Housing Credit Properties)
- IRS Revenue Procedure 2009-4 (Revised Procedures for Issuance of Ruling and Information Letters)
- IRS Revenue Procedure 2008-60 (Discontinuing a Surety Bond or Treasury Direct Account)
- IRS Revenue Procedure 2005-37 (Safe Harbor: Extended low-income housing commitments)
- IRS Revenue Procedure 2004-38 (Annual Recertification Waiver)
- IRS Revenue Procedure 2003-82 (Safe Harbor Designations: Occupant Income)
- IRS Revenue Procedure 2001-53 (Impact Fees Includable in Eligible Basis)
- IRS Revenue Procedure 99-11 (Alternative to Surety Bonds)
- IRS Revenue Procedure 96-32 (Safe Harbor Designations: Charitable Organizations)
- IRS Revenue Procedure 95-28 (Relief for Projects in Disaster Areas)
- IRS Revenue Procedure 94-65 (Documentation of Income from Assets)
- IRS Revenue Procedure 94-64 (Waiver of Annual Income Recertification)
- IRS Revenue Procedure 94-57 (Gross Rent Floor)
3vi. IRS Notices
- IRS Notice 2021-12 (Housing Credit Coronavirus Relief Guidance Extension and Expansion)
- IRS Notice 2020-53 (Housing Credit Coronavirus Relief)
- IRS Notice 2018-17 (Disaster Relief for Puerto Rico)
- IRS Notice 2016-77 (Community Revitalization Plan)
- IRS Notice 2014-15 (Treatment for States Participating in the Physical Inspections Pilot Program)
- IRS Notice 2012-18 (Physical Inspections Pilot Program)
3vii. Other Housing Credit Guidance
- Audit Technique Guide IRC 42
- IRS Guide for Completing Form 8823
- IRS Webinar on Completing Forms 8610 and 8609 (HFA-only access, log into the HFA Community Group to access)
- Treasury Guidance on Low Income Housing Grants in Lieu of Tax Credits (the Exchange Program) Recapture
- Memorandum of Understanding among the Department of Treasury, the Department of Housing and Urban Development, and the Department of Justice (Fair Housing)
- HUD Handbook: Occupancy Requirements of Subsidized Multifamily Housing Programs
4. IRS Forms
- IRS Form 8586: Low-Income Housing Credit
- IRS Form 8609: Low-Income Housing Credit Allocation
- IRS Form 8609 Schedule A: Annual Statement
- IRS Form 8610: Annual Low-Income Housing Credit Agencies Report
- IRS Form 8610 Schedule A: Carryover Allocation of Low-income Housing Credit
- IRS Form 8611: Recapture of Low-Income Housing Credit
- IRS Form 8703: Annual Certification of a Residential Rental Project
- IRS Form 8821: Tax Information Authorization
- IRS Form 8823: Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition
5. NCSHA Correspondence Relating to the Housing Credit
- NCSHA Letter to IRS, Treasury Urges Guidance on Implementing Minimum 4 Percent Rate, Disaster Housing Credits (February 2021)
- NCSHA Comments to the IRS on Form 8609 (January 2021)
- NCSHA Comment Letter on IRS Housing Credit Average Income Test Proposed Rule (December 2020)
- NCSHA Letter to IRS, Treasury on Extending and Expanding COVID-19 Housing Credit Relief (November 2020)
- NCSHA Comments on IRS’s 2020 Housing Credit Compliance Monitoring Proposed Rule (September 2020)
- NCSHA Letter to IRS and Treasury on COVID-19 Emergency Relief (March 2020)
- Background on Qualified Contract Problem and Solution (November 2019)
- NCSHA Comments on Improvements to Housing Credit disaster recovery guidance (Revenue Procedures 2014-49 and 2014-50) (November 2019)
- NCSHA Comments on Treasury/IRS 2019-2020 Priority Guidance Plan (June 2019)
- NCSHA Comments on IRS Compliance Monitoring Regulations (May 2019)
- NCSHA Letter to IRS on Average Income Test Income Limits (April 2019)
- NCSHA Comments on GAO Report on Housing Credit Development Costs (September 2018)
- NCSHA Letter to IRS and Treasury on Average Income Test Guidance and Implementation (June 2018)
- NCSHA Comments on IRS Revenue Procedure 2018-17 (Concerning Disaster Relief) (April 2018)
- NCSHA Comments to the IRS and Treasury on Notice 2016-77 (Concerning Concerted Community Revitalization Plans) (February 2017)
- NCSHA Comments on Housing Credit Compliance Monitoring Regulations (May 2016)
- NCSHA Comment Letter to HUD on the Fair Housing Assessment Tool (May 2016)
- NCSHA Comment Letter to HUD on Affirmatively Furthering Fair Housing (February 2015)
- NCSHA Comments on CRA Interagency Q&As (May 2013)
- NCSHA Comments to HUD on Fair Housing Rule (September 2013)
- NCSHA Comments to the IRS on Section 42 Compliance Regulations (May 2012)
- NCSHA Comments to the IRS on Form 8823 (September 2011)
- NCSHA Comments to HUD on Federal Alignment Initiative (August 2011)
For more information about the Housing Credit, please contact Jennifer Schwartz.
