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

Leveraging NMTC and GGRF

A Synergistic Approach to Community Development

Jennifer Kirkley & Regan St. Pierre • September 13, 2024 6 min read

Increasingly, climate solutions are central to preserving and creating wealth and well-being in communities across the country.

What Can Be Done About Insurance?

NH&RA Panelists Explore Ways to Rein in High Insurance Costs for Affordable Housing

Pamela Martineau • September 1, 2024 6 min read

Meet with your underwriter in person, provide as much data as possible on relevant inspections and offer photos of improvements you’ve made to affordable housing properties. These were just a few of the tips offered at the National Housing & Rehabilitation Association’s Summer Institute Panel: “What Can Be Done About Insurance?”

Rainbow Housing: Transforming Resident Services from Within

Abram Mamet • September 1, 2024 9 min read

For most organizations, radical shifts in market strategy and company makeup generally come after crises. For Rainbow Housing Assistance Corporation (Rainbow), that radical shift came not as a result of significant challenges, but as a way to leverage successful internal practices to better serve the affordable housing industry.