Tax Credit Regulatory Agreement

The Internal Revenue Service monitors owners` compliance with LIHTC laws, rules and regulations. According to new York State rules at 20 NYCRR § 2040.5 (a) “the regulatory agreement must be ready for public viewing in the owner`s rental office and credited in all marketing materials.” The owner must keep the building as a low-income apartment for at least 30 years. During the first fifteen years of the regulatory agreement, the owner must confirm compliance with the rules and regulations each year with the Agency responsible for following the qualified allocation plan (Homes and Community Renewal in New York State). The last fifteen years are a period of prolonged use and do not have the same rules for certifying compliance. The lessor must attach to all LIHTC rental contracts the necessary summary of the rights and obligations of tenants through the regulation contract for low-income residential buildings. The rent to be charged to the tenant must be disclosed before the lease is signed. Landlords must confirm the tenant`s income each year by requesting a copy of the tenant`s federal tax return, W-2 tax form, or third-party proof from the tenant`s employer or a government agency. Determine if LIHTC applies to construction: Most LIHTC projects are available on this site: However, some properties receive tax credits through their Local Industrial Development Agencies (IDA).

You can send a Freedom of Information Act form to IDA to get a list of the LIHTC projects they fund. A landlord can only distribute a tenant for a good reason and a landlord can only refuse to renew a rental agreement for a good reason. (The landlord is treated as a “state actor” and tenants are therefore entitled to due process in all of the landlord`s efforts to evacuate or not renew the lease.) A landlord must not attempt revenge on a tenant who informs Renewal of New York State Housing and Community of an alleged violation of the regulatory agreement. The landlord may not refuse to rent to a holder of a section 8 Housing Choice Vouchers because of his status as holder of the voucher. There is no federal restriction on renting to people who are in the U.S. without the necessary documents (although the people who run the business can set up their own policy). LIHTC recipients must enter into a regulatory agreement with NYS HFA. The regulatory agreement provides for certain conditions governing the premises, including the rights and protection of tenants. Accordingly, the Agency undertakes to make the Covenants and the Depositary Right of the Loan Agency subject to the primary loan and/or the credit settlement agreement, subject to the conditions set out in point 310.10. Am I overloading? The tenant`s monthly housing costs, including an allowance for electricity, gas and telephone, must not exceed the LIHTC rent limit. .

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