Form 8823 (Rev February 2004) Low-Income Housing Credit Agencies Report of Noncompliance or Building-2025

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The Guide was first released in 2007 to provide guidelines for preparing Form 8823, the Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition.
What Does an 8823 Communicate? The 8823 Form is used when LIHTC noncompliance is identified by a state agency in order to notify the IRS of that noncompliance.
End of the first year of tax credit. The records for the first year of the credit period must be retained for at least six (6) years beyond the due date (with extensions) for filing the federal income tax return for the last year of the compliance period.
Housing credit agencies use Form 8823 as part of their compliance monitoring responsibilities under section 42(m)(1)(B)(iii) to notify the IRS of any building disposition or noncompliance with the low-income housing tax credit provisions. The housing credit agency should also give a copy of Form 8823 to the owner(s).
Housing credit agencies use Form 8823 as part of their compliance monitoring responsibilities under section 42(m)(1)(B)(iii) to notify the IRS of any building disposition or noncompliance with the low-income housing tax credit provisions.

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The 70 percent subsidy, or 9 percent tax credit, supports new construction without any additional federal subsidies. Rental properties that qualify for the LIHTC tend to have both lower debt service payments and lower vacancy rates than market-rate rental housing.
The IRS Form 8823, titled Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition, is utilized by state agencies to report noncompliance with the Low-Income Housing Tax Credit (LIHTC) program or the disposition of buildings within the program.
The Low-Income Housing Tax Credit provides a tax incentive to construct or rehabilitate affordable rental housing for low-income households. The Low-Income Housing Tax Credit (LIHTC) subsidizes the acquisition, construction, and rehabilitation of affordable rental housing for low- and moderate-income tenants.

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