Presented by: 2013 Zeffert & Associates All Rights Reserved

Transcription

1 Presented by: & 2013 Zeffert & Associates All Rights Reserved

2 The Goal of this Training The purpose of this training is to provide information for all interested personnel to successfully provide housing at projects that use acquisition/rehab credits under the IRC Section 42 tax credit housing program. Zeffert & Associates

3 LIHTC Acq/Rehab Basics 42 (e)(4) An owner cannot claim acquisition credits without rehab credits; rehab credits can be claimed without acquisition, however. Acquisition and rehab are two separate credit streams; they are literally treated as if there were 2 separate buildings with 2 separate 8609s. Acquisition/rehabs and the Credit Percentage Acquisition credits will be 4% credits. Rehab credits will be 4% if bond-funded or 9% if not. Placed in Service Dates (PIS) 42 (e)(3)(a) For tax purposes, a building is placed in service when it is ready for its intended purpose. For new construction this is generally when a building receives its certificate of occupancy. For acquisition/rehabs, however, the building is often being used for its intended purpose (to house people) at the time of acquisition. When the housing is currently occupied, placed in service dates in acquisition/rehab are based on: Acquisition: PIS is the date of purchase. Rehab: PIS is based on expenditure tests, NOT when the project is complete. The rehab places in service when at least the greater of 20% of the adjusted basis or $6,200 per unit is spent. Also, the goal rehab costs for the building will have to have been met. The PIS will be determined by accountants after the fact and the rehab PIS will generally not be known ahead of time. Minimum Set Aside Every LIHTC property has a minimum set-aside. There are 3 options: 8823 Guide Chapter This set-aside applies to New York City only. The minimum set-aside establishes two things: 1. What % units (minimum) must be LIHTC AT ALL TIMES (20% or 40%). This is always figured on the number of units, regardless of the size of each unit. The test for this is on the last day of each year. 2. The definition of low income at the property (50% or 60% MTSP). All units that will be counted as LIHTC in the property must be at or below this limit. The minimum set-aside is irrevocably selected on IRS Form 8609 line (c) Part II a The owner now has until the end of the year PIS or to the end of next taxable year to meet the Minimum Set-Aside and start claiming credits. Zeffert & Associates Page 1

4 VITAL Note about the Minimum Set-Aside: Instructions to IRS Form 8823 If the property fails to meet the minimum set-aside by the deadline, no credits can ever be claimed. SUBSEQUENT violations of the set-aside results in recapture of all previously claimed credits and credits cannot be claimed until set-aside is met again. During a rent-up, fill each unit once first! Fill empty (never-been-qualified) units before vacant (qualified residents have since moved out) units. Because meeting the deadlines is so important, in the first year the owner will be calling! Zeffert & Associates Page 2

5 Qualifying Households 8823 Guide (e)(4)(B) Both acquisition and rehab credits are satisfied with one set of certification paperwork and may be effective going back to acquisition PIS for tenants in place at acquisition because income certifications completed within 120 days before or after acquisition may be effective as of the acquisition date. Effective Dates for Tenants In-place at Acquisition date If certified: Effective date is: The Income limits to use are: 120 before or after acquisition the acquisition date limits on acquisition date after 120 days the date the TIC is signed limits as of signature date A building is acquired on 06/05/2011. The rehab is placed in service on 12/15/2011. Based on this information, complete the effective dates for the household below: Workshop: Acq/Rehab Effective Dates A. An existing household is qualified and the TIC is signed on 04/01/2011. What is the effective date of the TIC? B. A new household was qualified. The TIC is signed, and the move-in is 06/07/2011. What is the effective date of the TIC? C. An existing household is qualified and the TIC is signed on 07/09/2011. What is the effective date of the TIC? D. An existing household is qualified and TIC is signed on 12/11/2011. What is the effective date of the TIC? E. A new household was qualified. TIC signed, and moved in on 12/06/2011. What is the effective date of the TIC? Applicable Fraction or the percentage of the units are LIHTC 42 (c)(1)(b)-(d) Part of the determining the tax credits for a building is calculating how much of the total money spent on the building (i.e. the eligible basis ) is going to provide housing to low-income residents. The applicable fraction is the fraction of the residential units that house tax credit households calculated as the LOWER of: The number of residential rental units OR the square footage of the residential rental units. The fraction is figured as follows: Numerator: Denominator: The total LIHTC portion of the building The total residential rental portion of the building Notes: Common (non-residential) area is excluded from this calculation. Except for the 1 st and 11 th year credits are claimed, the applicable fraction is based on the units in compliance as of the last day of the year. Zeffert & Associates Page 3

6 Special Units and the Applicable Fraction: Model Units Model units are generally utilized during a project s lease-up period to show prospective tenants the amenities of the project s units. A model unit can be included in the eligible basis and included in the denominator of the building s applicable fraction, it cannot, however be included in the numerator of the applicable fraction unless rented to a low-income household. Employee Units IRS Rev. Rul and IRS Newsletter #14 Full time employees to the property (as defined by the needs of the property) who otherwise do not qualify may occupy LIHTC units. In addition to managers, this can also apply to maintenance and security staff. The unit IS included in the eligible basis, but it is EXCLUDED from both parts of the applicable fraction. It is sometimes referred to as being treated as common area. Rent should not be charged for an employee unit. Employee units work best at 0% LIHTC. Converting at a mixed income property with different sized units may work, but watch the applicable fraction carefully. Supplemental Lesson: Quick Fraction/Decimal/Percentage Math Fraction Basics A fraction has a numerator (top of the fraction) and a denominator (bottom). To convert a fraction to a decimal, divide the top by the bottom. Example: the fraction: 87 is the same as: 87 92, which equals Converting a Decimal to a Percentage If you want to express your decimal answer as a percentage, you will move the decimal point two places to the right. Example:.9457 is 94.57% Zeffert & Associates Page 4

7 There are units total in the building: 5 of the units are 1-bedroom (800 sq. ft. each) o All 5 are LIHTC 5 units are 2-bedroom (1,200 sq. ft. each) o 1 is LIHTC and 4 are market Workshop: Applicable Fraction # of LIHTC units = Total # of building units LIHTC sq. ft = Total building sq. ft =. =. App Fraction = % LIHTC 1,200sq LIHTC 800sq Market 1,200sq LIHTC 800sq Market 1,200sq LIHTC 800sq Market 1,200sq LIHTC 800sq Market 1,200sq LIHTC 800sq The First Year Applicable Fraction 42 (f)(2)(a) and (B) For Years 2-15, the applicable fraction reached by the end of Year 1 should remain constant based on the applicable fraction reached at the end of the first year. When the Year 1 credits are claimed, however, they are pro-rated. The pro-ration calculation is based on the applicable fraction at the end of each month of the first year, starting the first full month that the building is in service. Example: A building is PIS March 15th. Credits will be claimed starting in April, and we will calculate the applicable fraction as of April 30th and every month-end thereafter. The remainder of the pro-rated credits from Year 1 are claimed in Year Guide 4-28 &29 Units counted as LIHTC for the applicable fraction are those that are: 1. Occupied by household qualified as LIHTC 2. Vacant and last occupied by a qualified household who has left the project. Units down for rehab are not counted, but once back on-line, they return to their status before rehab began. Zeffert & Associates Page 5

8 For an empty 3-unit Building (all units are the same size) which was placed in service July 1 st, Unit #1 LIHTC rented July 31, 2013 Unit #2 LIHTC rented Sep 15, 2013 Unit #3 LIHTC rented Dec 30, 2013 Applicable Fraction Pro-rate Worksheet: January February March April May June July August September October November December Total Year 1 pro-rated AF (Total 12) Year 11 pro-rated AF (Year 1 year end AF- Year 1 pro-rated AF) The 1 st month credits will be calculated: Workshop: Applicable Fraction Chart: Credit, Compliance and Extended Use Periods Placed in service 1st year credits (year PIS or next) 11 th year (last pro-rated credits claimed) year credit period 15 year compliance period 30+ year extended use period Deferred Credits 8823 Guide Chapter 4 page (f)(1) The first year of the credit period is either the year a building is placed in service, or the next. If it is not the year PIS, the owner must elect to defer the credits. This is done on IRS Form Owners defer to allow the highest possible number of tax credit units to be qualified. The year that credits are first claimed becomes the first year of the credit, compliance and extended use periods. Any units that are not LIHTC qualified by the end of the first year are only ever eligible for 2/3 credits. Zeffert & Associates Page 6

9 When an owner may choose to defer: A building has a target goal of 0% LIHTC units. It is placed in service on October 2 nd, 20. By the end of the year, 53 of the 0 units (all the same size) have been qualified. The owner must choose either to claim credits in 20 (settling for 53%) or deferring to 2011, hoping to get to the 0% by the end of that year. Whatever the case, by the end of the second year, credits will have to begin. When an owner is not likely to defer: A 75 unit building has a target 0% LIHTC. The building is placed in service on 04/05/2011. By 12/31/2011, all 75 units have been qualified. Since the target has been met by the end of the first year that the building was placed in service there is no need to defer credits to the following year, all credits would probably be claimed in 2011 Acquisition credits may start as early as the date the building is acquired, but must start the same year as the rehab credits do. If rehab credits are placed in service in a later year, the acquisition credits are deferred to the year the rehab is placed in service. In general, credits will start on the earliest date that is: 1. On or after the date of acquisition AND 2. Is in the year the rehab is placed in service. Examples: 1. A building was acquired /16/2011 and the rehab was PIS 03/15/2012. Both credits may begin on 01/01/ A building was acquired on 03/01/2011. The rehab was PIS 12/13/2011. Both credits may begin on 03/01/ A building was acquired 01/01/20 and the rehab was PIS 12/30/2011. Both credits may begin on Workshop: Acq/Rehab When Credits Start 2. A building was acquired 05/01/2011. The rehab was PIS 09/13/2011. Both credits may begin on 3. A building was acquired on 01/01/2011. The rehab was PIS 12/13/11. Both credits may begin on 4. A building was acquired on 06/01/2011. The rehab was PIS 06/13/12. Both credits may begin on Vital Note: Even if credits are not going to be claimed the year of acquisition, getting the certifications done at acquisition accomplishes two important things: 1. Households can be determined to be qualified at acquisition and are protected against future disqualification if their income increases. 2. Over-income households can be given more time to plan their relocation. Zeffert & Associates Page 7

10 Transfers Revenue Ruling (12 questions) Question Guide Chapter 4 pages PLR Transfers within a building are acceptable and the units simply switch status. According to the IRS, transfers are allowable for households between buildings WITHIN A PROJECT without recertification if the household was below 140% of the income limits at their most recent certification. This MAY be acceptable to a state. It is important to check with the state monitor for their policy Part II 8 b A household, however, can never initially qualify more than one unit at a time. When they transfer, the unit they were in and the unit they go to switch status. If they transfer from a unit that they initially qualified to a never qualified unit, the unit they move to is now qualified, but the unit they leave becomes never qualified starting the date of transfer. The pro-rated first year applicable fraction is calculated accordingly. Example: Transfer within a Project Two buildings are part of a multi-building project, per the 8609s. Building # 1 was 0% LIHTC in June. The applicable fraction is 4/4, or 0%. The second building has been rehabbed and when they begin to lease up the second building, the household in unit #4 transfers from the first building into the second. No additional households move into either building in July. For July, the applicable fraction is now 75% in the first building and 25% in the second. June: Unit # 1 Qualified Unit # 3 Qualified Unit # 2 Qualified Unit # 4 Qualified BIN #1 BIN #2 AF = 0% AF = 0% 4 /4 0 / 4 Unit # 1 Empty Unit # 3 Empty Unit # 2 Empty Unit # 4 Empty July: Unit # 1 Qualified Unit # 3 Qualified Unit # 2 Qualified Unit # 4 Empty AF = 75% AF = 25% 3 / 4 1 / 4 Unit # 1 Empty Unit # 3 Qualified Unit # 2 Empty Unit # 4 Empty Zeffert & Associates Page 8

11 Case Study # 1: Single Building: Units Rehabilitated During the First Year of the Credit Period Example from 8823 Guide page 4-29: An owner acquired a building with units and determined that 6 of the units (1-6) were occupied by non-qualifying households at the beginning of the first year of the credit period on January 1, Four units (7-) were occupied by income-qualified households. The non-qualifying households moved out and the owner rehabilitated the six vacant units. Five of the rehabilitated units (1-5) were rented to new households that moved into the units in August of The sixth rehabilitated unit (6) was rented in August to an existing tenant who transferred from unit 7, one of the four units qualifying on January 1, 2005 During September, unit 7 was rehabilitated and the tenant from unit 8 moved in. To expedite completion of the rehabilitation of the remaining units, the owner also temporarily located the households in 9 and in off-site quarters (and paid all expenses) and started rehabilitation of units 8, 9, and. The owner completed the rehabilitation of the final three units (8, 9, and ) in October and moved the two temporarily displaced households back into units 9 and during October Based on the above, complete the following chart for 2005: 1 = a qualified LIHTC unit Unit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec AF Pro-rated First Year Applicable Fraction Calculation Jan 40% Feb 40% Mar 40% Apr 40% May 40% Jun 40% Jul 40% Aug 90% Sept 70% Oct 90% Nov 90% Dec 90% Total 7% 12 = 59.17% 1st year Pro-rated AF 9 Zeffert & Associates Page 9

12 Case Study # 2: Multiple Buildings : Acquisition PIS: 01/18/2011 Rehab PIS: 06/02/2011 Credits Claimed: 02/2011 Owner is electing to treat the buildings as a multiple building project. BUILDING A 1: Mr. Smith, an existing tenant was certified in unit #1 on 12/18/20. On 4/12/11, he was transferred to unit # 204 a rehabbed unit. Once he transferred, the rehab on 1 began. The rehab for this unit is completed and a new tenant,mr.jones, is certified and moved in on 6/5/11 2: Mr. Apple, an existing tenant was certified in unit #2 on 3/28/11. On 5/16/11, Mr. apple transferred to unit 202, a un-rehabbed unit. On 7/3/2011, the rehab of unit 2 is complete and Mr. Apple transfers back to unit #2. 3: Mr. Lion, an Existing tenant, was certified on 1/2/2011. On 4/5/2011 he transferred to unit 201, an unrehabbed unit. Once he transferred, rehab began on unit 3. On 6/15/11 the rehab on unit 3 is complete, and Mr. lion transfers back to #3. 4: The existing tenant in this unit was not student eligible and moved out on 2/1/11. The unit was rehabbed and a new tenant, Mrs. Pirate, was certified and moved into the unit on 7/16/11 5: Ms. Cookie, an existing tenant was certified in unit 5 on 3/15/2011. On 6/18/11, she was transferred to unit 203, a rehabbed unit. Once Ms. Cookie transferred to # 203, the rehab began on unit 5. The rehab on unit 5 is completed and a new tenant, Mr. Milk is certified and moves into the unit on /31/2011. BUIDLING B 201: The existing tenant was not income eligible and moved out on 2/25/11. On 4/5/2011, Mr. Lion transferred from unit 3 to unit 201. On 6/15/2011, the rehab on 3 is completed and Mr. Lion transfers back to unit #3. Once Mr. Lion transfer's to unit #3, the rehab on 201 began. The rehab on 201 was completed and a new tenant, Mr. Lily, was certified and moved in on 9/15/ : Existing tenant was not income eligible and moved out on 4/15/2011. On 5/16/2011, Mr. Apple transferred from unit 2 to unit 202. On 7/3/2011, the rehab of unit 2 is complete and Mr. Apple transfers back to unit #2. Once Mr. apple transfer to 2, the rehab on unit #202 begins. The rehab is completed and a new tenant, Mrs. Praline is certified and moved in on 9/8/ : Unit 203 was vacant at the time of acquisition. The unit is rehabbed and Ms. Cookie transfers from unit 5 to unit 203 6/15/ : Unit 204 was vacant at the time of acquisition. The unit is rehabbed and on 4/12/11, Mr. Smith transferred from unit 1 to unit : The existing tenant refused to comply with the income certification and moved out of the unit on 2/12/11. The unit was rehabbed and a new tenant, Mrs. Bearclaw was certified and moved in on 5/30/2012 Zeffert & Associates Page

13 If acquisition credits are deferred because the rehab is not PIS that year, then both acquisition and rehab credits will begin at the start of the year that the rehab is PIS. Any tenant qualified up through January 31 st of that year starts credits for their unit. Example: A building is acquired on March 2 nd, 20. Any in-place household qualified by June 29 th, 20 gets an effective date of: 03/02/20 A household moved in January 2009, certified for tax credits on April 18 th, 20. If credits are claimed in 20, they will start for that unit in what month? April, 20 If credits are deferred, they will begin in: Jan, 2011 Income Test Rev. Proc Guide 4-26 When acquisition credits are deferred, units qualified on or after PIS, but before start of the credit period and who are still in place at the start of the credit period will not need to re-qualify for credits. If their last certification was completed more than 120 days before the start of the first year, an income test may need to be run on their income at the beginning of the first credit year. The income test is a self-certification that income has or has not changed since the last certification. If there have been changes, the household will provide supporting documentation to allow for new calculation. The household's eligibility is not in question but the Available Unit Rule may come into effect. The income test would appear to have no purpose at a 0% project, based on the way the AUR works at 0% projects. A unit building is acquired on 02/15/2012. The rehab is placed in service on /20/2013. By December 31 st, 6 of the units have been qualified. Management must determine which household must have an income test completed. Below is a listing of the date that each household qualified the unit. Circle which of the following unit s must have an income test completed: Hint: September 3 rd is 120 days prior to January 1 st. A. Unit 1 qualified on 02/15/2012 B. Unit 2 qualified on 08/25/2012 C. Unit 3 qualified on 09/13/2012 Workshop: Income Testing and Effective Dates D. Unit 4 qualified on 09/01/2012 E. Unit 5 qualified on 11/02/2012 Available Unit Rule AUR This rule is also called the 140% or next available unit rule (AUR). 42 (g)(2)(d) & IRS Reg Guide 14-1 & 5 1. For 0% LIHTC projects: owners must demonstrate due diligence when moving in new households to make sure that all units that become available are rented to qualified households. If they move in an ineligible household and cannot demonstrate due diligence, they violate the available unit rule. 2. For mixed income projects: If household s income increases to over 140% of the current qualifying income limit when they are recertified, they become over-income. Credits can continue to be claimed on the unit as long as the next available unit (of equal or smaller size) in the same building is rented to a qualified applicant. The goal is to restore the applicable fraction, not counting the over-income household. Over-income units must remain rent restricted until the next available unit(s) are rented. If the rule is violated, all comparable or smaller 140% units fall out of the applicable fraction & minimum set-aside. A Unit is no longer available if a legally binding agreement is in place. Zeffert & Associates Page 11

14 When a Property Uses Tax Credits Again 8823 Guide 4-27 & 28 Households at a project that is being rehabbed with tax credits that were qualified previously under an initial set of credits continue to qualify without re-certification. Example: Resyndication An owner received a tax credit allocation to construct a LIHTC property. The owner places the building in service 1999 and began claiming credits that same year. a household originally qualified in 2003 for a project that had been constructed with tax credits, and had a credit period that ended in The owners are re-syndicating and getting rehab credits. The household will qualify a unit based on their initial qualification in If a recertification is required (because the project is mixed-use), and the household income has gone up since 2003, the available unit rule may be in effect. NOTE: Vacant units that were qualified prior to the start of new credits will be LIHTC qualified only if there was not a change in ownership. For acquisition-rehabs, vacant units will have to be re-qualified. Rehabs at Federally Funded Projects 8823 Guide At a project-based Section 8 Property LIHTC and HUD anniversary dates may never coincide if the State HFA has adopted the 8823 Guide anniversary recert requirements. In-place tenants may not qualify, and must not be required to vacate their units. See the Relocation Act of 1970 (URA). Planning for an Acq/Rehab: Overview Much thought must be given to how management will: Maximize credits Engage the current residents Certify existing households quickly Deal with relocation issues on and off-site Manage media attention Zeffert & Associates Page 12

15 Maximize Credits When Facing an Acq-rehab Planning In order to maximize credits, it is vital that the owner and the management company know: Item The date of acquisition The year the rehab will be placed in service The rehab schedule Why Important To know when the 120-day opportunity begins. If credits will be claimed going back to acquisition, then qualifying everyone to this date will result in the highest 1 st year pro-rated applicable fraction and the most possible credits. If credits are going to be deferred to later year, qualifying households to the acquisition date protects them as qualified households in case their income increases in the meantime. If credits are going to be deferred and acquisition is more than 120 days before January of the 1 st year of the credit period, an income test may be necessary to plan for. To know if the start of credits will be at acquisition or January of later year. To know how important the 120-day opportunity is. To know if the income test is going to be applicable (see above). To strategically target buildings to be completely occupied by qualified households. Engage the Current Residents Planning At a minimum, the owner will need to contact each household through a letter or flyer explaining what is happening at the property and what you need from them to succeed. Focus on the positive benefits of the rehab. If you have an engagement meeting (see below), you will still need a letter to go out. Engagement Meetings Consider holding larger gatherings to explain the details of the acq/rehab. At this meeting the owner and/or agent can explain the changes that are coming, with a focus on the benefits of the rehab and why cooperation is vital. Paperwork should be on hand to allow all in attendance to complete and sign all appropriate questionnaires and verification forms. Benefits of Engagement Meetings Allows paperwork to be started quickly for multiple households and jump starts the process. Tenant questions get answered at once, instead of individually. Common questions come up over and over in individual meetings. Challenges of Engagement Meetings Several staff must be available at one time. The meeting must be very thoroughly planned. At times effort is required to keep the atmosphere upbeat. Practical Pointers to create a positive atmosphere at meetings Food and simple decorations and entertainment go a long way!!! Try to get applause over the rehab early in the presentation Keep the presentation simple and avoid making promises. Owners often have to change their plans many times during the rehab process. Be honest. NEVER promise that everyone will be able to stay! Zeffert & Associates Page 13

16 Topics to Discuss Whether by letter or meeting, the following topics should be discussed briefly: The new income limits LIHTC-specific student rules If the rehab is proposed to affect rents Prompt cooperation from everyone for the rehab is required for the rehab to be a success Practical note: a flyer explaining the basics of the tax credit program can be very useful. See a sample in the Supplemental Information following this section. Certify Existing Households Quickly Planning Whether you have an engagement meeting or you make individual appointments, make sure that your invitation lists items to bring with them. This should include at least the most recent 4-6 paystubs, the most recent benefit letters and the most recent statements for any assets owned. This will allow you to have that paperwork on hand if the 3 rd -parties will not cooperate after 2 weeks of effort to get verification forms completed. Sample Appointment Notice Card From Zeffert & Associates Forms Package CUSTOMIZED FOR AND USED WITH PERMISSION OF PATRICK DEVELOPMENT Zeffert & Associates Reviewing Federally Funded Properties If you have a property with federal assistance (such as project-based HUD Section 8 or RD section 515), check each file that has been certified recently. Look for any verifications that will still be good as of the effective date because 1) they were received no more than 120 days before the effective date or 2) they are the most current letter for fixed benefits (if allowed by LIHTC state monitor). Give Tenant s Homework Have a form prepared that has blanks that can be filled in with items that are determined by the interviewer to be needed after the initial appointment. Zeffert & Associates Page 14

17 Plan to Track Be well aware of which verifications have been sent out and when. Re-send if the 3 rd -party has not responded every few days. If two weeks elapse, thoroughly document your efforts to get 3 rd - party verification and move on to secondary documentation. Since this must be monitored closely to get the most efficient results, tracking databases, spreadsheets or software often can be very useful. Incentives Consider offering incentives to residents for quick cooperation. Gift cards or certificates off of next month s rent or $25 are great motivators for some otherwise tardy tenants. Planning Deal with Relocation Issues Ineligible Households Know what the owner intends to do about over-income or non-eligible student households. Consider incentivized moves to conventional properties in your portfolio or developing a relationship with other apartment communities in the area of the property. Relocation Act of If you have federal assistance (such as project-based HUD Section 8 or RD section 515), you will not be able to simply non-renew leases for not LIHTC-qualified in-place tenants. There are also several very specific requirements relating to reporting, posting notices and other communication with tenants. KNOW THE RULES to avoid committing federal crimes. Manage Media Attention Planning In most acquisition/rehab projects, there will be media attention. It is important to be prepared to manage the flow of information and to handle when things do not go well. Many successful projects begin with a pre-emptive positive media campaign. This focuses on the benefits, while not ignoring the facts of life. The possibility of permanent relocation for some (often a requirement of ANY rehab) should not be ignored, but can be skillfully framed positively. Since it is possible that people will lose their housing, a project may gain media negative and very biased attention. Be sure that a thoroughly prepared person is appointed to address the media. All staff should refer all inquiries to that person. Zeffert & Associates Page 15

18 Zeffert & Associates Page 16

19 A Few Words of Encouragement We Do this Job Well The most recent GAO reviews for the LIHTC program were positive. It is also a wise use of resources to improve existing housing stock and retain homes for many existing and new residents using acquisition/rehab provisions. It is a challenge to learn this program well, but the more effort something takes, the more gain is realized. The LIHTC program is active in all states, and qualified personnel are in demand. Not all jobs provide a certain amount of personal security and are also beneficial to Society. We strongly feel that LIHTC-related jobs are. Zeffert & Associates Page 17

20 Supplement: Sample Tri-Fold LIHTC Information Brochure from Zeffert s Forms Package CUSTOMIZED FOR AND USED WITH PERMISSION OF PATRICK DEVELOPMENT Zeffert & Associates, Inc. Zeffert & Associates Page 18

21 Supplement: Form IRS 8609 Zeffert & Associates Page 19

22 Thanks for attending our training! Attendees of this course can get BONUS supplemental reference material from our website. 1 Go to 2 Enter your training class user name in the MEMBER LOGIN section in the upper right hand corner. Login using the below: Your class user name is: LIHTCclass Your password is: (password is case sensitive) 3 From the front page, hover the cursor over the TRAINING tab and click on Training Downloads from the drop-down menu. 4 Click on the Bonus Material specific to the course 5 Click on References Download 6 Click the Download icon to save your Bonus Material to your computer 7 The user name and password are available for a limited time 8 If you have any difficulty, please feel free to us at Training@zeffert.com and explain the issue.

23 Ask About Online Training! Logon Now! SAFE, ACCESSIBLE, AND AFFORDABLE HOUSING IS A CRITICAL COMPONENT IN GROWING HEALTHY COMMUNITIES Trust Us To Handle Your Compliance Needs With Quality & Reliable Service PROVIDERS OF THE FOLLOWING SERVICES Asset Management Training File Reviews Utility Allowance Calculations Utility Consumption Baselines Accessibility Reviews & Inspections Capital Needs Assessments Energy Audits Accessibility Package Packaged Programs ZEFFERT & ASSOCIATES IS A CONSULTING FIRM specializing in the delivery of asset management and various related services nation-wide in support of the housing industry. Since 1994, Zeffert leverages efficiencies created by existing expertise, information management, and logistical systems to provide high-value services at optimal cost Weldon Parkway St. Louis, MO P: E: info@zeffert.com