Dealing With Casualty Losses in the Low-Income Housing Tax Credit Program
By Caitlin Jones
1 min read
Tax Credit Advisor, December 2011:
By A. J. Johnson
This year the Internal Revenue Services has issued a number of notices to permit existing low-income housing tax credit projects in certain states, with the approval of the state allocating agency, to rent vacant units temporarily to families displaced by floods, tornadoes, and other natural disasters without regard to certain normal LIHTC program restrictions such as tenant income limits.
Natural disasters and other events can destroy or significantly damage housing credit properties, putting them partly or entirely out of operation. Today there continues to be confusion about how the “casualty loss” of a LIHTC building impacts the owner’s ability to claim housing credits. There are ways, however, to mitigate the loss of credits due to a casualty loss. Read More…
