Housing Tax Credit Compliance Information

Section 42(m)(i)(B)(iii) of the Internal Revenue Code requires housing credit agencies to include in their Housing Tax Credit Allocation Plan a procedure to monitor all tax credit developments for compliance with the requirements of Section 42, the Housing Tax Credit Program, throughout the compliance period. In Iowa, the Iowa Finance Authority (IFA) administers this program, as specified in Iowa Code Section 16.52.

An allocating agency is required to have procedures for monitoring a development’s compliance with the provisions of the Code and notifying the Internal Revenue Service (IRS) of any noncompliance of which it becomes aware, whether or not the compliance deficiency is corrected. These monitoring requirements became effective on January 1, 1992, were amended on January 14, 2000, and apply to all tax credit developments, even if the development received an allocation prior to 1992.

The following links are intended to provide guidance for compliance with the Land Use Restrictive Agreements (LURA), Section 42 of the Internal Revenue Code of 1986, as amended, and the State of Iowa’s Qualified Allocation Plan (QAP), and, generally, to help answer questions regarding the procedures, rules, and regulations that govern the LIHTC developments. This information should be a useful resource for owners and developers, management companies, and on-site management personnel.

Contact:
IFA's Housing Tax Credit Compliance team may be reached at 800-432-7230.