Maximizing the Bottom Line: Using Alternative Methods to Compute LIHTC Utility Allowances

By Caitlin Jones
July 20, 2011 1 min read

Maximizing the Bottom Line: Using Alternative Methods to Compute LIHTC Utility Allowances

By Caitlin Jones
July 20, 2011 0 min read

By A. J. Johnson

Tax Credit Advisor, July 2011: With rising energy costs, it’s more important than ever for low-income housing tax credit properties to be as energy-efficient as possible. But for highly energy-efficient properties in which tenants pay their own utility costs, it may make sense for developers and owners to use one of the available alternative methods for determining the utility allowance to monetize the building’s improved performance and achieve higher net rents.

Under the LIHTC program, the monthly rent charged for a tax credit apartment equals the gross rent amount minus the amount of any utility allowance(es) for tenant-paid utilities (e.g., electric, gas, water). The computation of LIHTC utility allowances is governed by IRS Regulation 1.42-10 and Notice 2009-44. Read More…

NH&RA Presenting Sponsor

Breaking Ground

Jennifer Leimaile Ho, Minnesota Housing Commissioner and Incoming Chair of National Council of State Housing Agencies

Pamela Martineau • December 1, 2024 10 min read

Earlier this fall, Jennifer Leimaile Ho was elected chair of the National Council of State Housing Agencies’ (NCSHA) 2025 Board of Directors. Ho is the Commissioner of Minnesota Housing, having been appointed by Governor Tim Walz in January 2019 and reappointed in 2023.

“Business as Usual”

Leaders in Equity Express Optimism Despite an Uncertain Future

Abram Mamet • December 1, 2024 9 min read

Any outside observer may assume some unease amongst the low-income housing industry. Buffeted on the one hand by residual stressors from the COVID-19 pandemic and on the other by the uncertain prospects of an incoming federal administration keen on cutting spending and shrinking government programs, the affordable housing landscape is experiencing an inflection point.

NCSHA Recognizes Stand-Out Affordable Housing Programs and Initiatives

Pamela Martineau • December 1, 2024 7 min read

This fall, the National Council of State Housing Agencies (NCSHA) recognized 17 programs offered by state housing finance agencies across the nation that creatively developed tools to tackle their communities’ affordable housing challenges.