LIHTC Application SupplementRecertification Questionnaire 2026

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin with Section A: Household Information. List all household members, including their names, relationships, dates of birth, and social security numbers. Ensure accuracy as this information is crucial for your recertification.
  3. Answer the questions regarding household composition changes. If any members are temporarily or permanently absent, provide their names and explain any expected changes in the next twelve months.
  4. Proceed to Section B: Income and Assets. For each income source listed, indicate whether you receive it and enter the amount if applicable. This includes wages, benefits, child support, and more.
  5. Complete the asset section by detailing your financial holdings such as checking accounts, savings accounts, stocks, and any other relevant assets. Be thorough to ensure compliance with reporting requirements.
  6. Finally, certify that all information provided is true and complete by signing at the bottom of the form. Remember to date your signature for verification purposes.

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10-Year Rule: The building is eligible for acquisition credit so long as the existing building was not placed-in-service during the 10-year period preceding the acquisition.
Section 42 housing can be especially helpful in expensive rental markets like San Francisco, CA and Seattle, WA. Section 42 housing was created as part of the Tax Reform Act of 1986. The subsidy comes in the form of a tax credit given to your landlord.
The test is to verify that 50% or more of the tax-exempt bond proceeds are used to finance the aggregate basis of any building and the land on which the building is located. Failure to meet the 50% Test is catastrophic to a low-income housing tax credit project.
2085 (1986 Act) created the low-income housing credit under 42 of the Code. Section 42(a) provides that the amount of the low-income housing credit for any taxable year in the credit period is an amount equal to the applicable percentage of the qualified basis of each qualified low-income building.
A project qualifies to receive the 4 percent credits if at least 50 percent of its funding comes from tax-exempt private activity bonds provided by the state, and it meets some criteria set out in the states QAP.

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People also ask

WHAT IS THE 50% TEST? Affordable housing developments are eligible for the maximum amount of 4% Housing Credit equity if at least 50% of the cost is financed with Private Activity Bonds.
Renters living in Low Income Housing Tax Credit (LIHTC - Section 42) units pay a fixed rent amount. The rent amounts are often similar to other market rate units in the area. However, the LIHTC buildings often have much nicer amenities than market rate units renting for a similar price.
Subsidized housing is vital for low-income individuals and families, offering stability. Section 8 directly assists tenants by bridging rent gaps, while Section 42 provides tax incentives to developers, ensuring affordability.

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