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Learn All About 2020 Updates to the LIHTC Income Averaging Minimum Set-Aside Election.

Join Amanda Gross for a Webinar on Updates to the LIHTC Average Income Minimum Set Aside Test

In 2018 the Low-income Housing Tax Credit program introduced a significant change – the new “Income Averaging” Minimum Set-Aside election. While the addition of this new set-aside option was very exciting, the IRS did not address when a project would be considered in violation of the Average Income (AI)Test. The lack of clarity regarding the impact of AI violations resulted in differing opinions about when the AI test is actually violated.

What’s New with the LIHTC Average Income Minimum Set Aside Test?

On October 30, 2020, the IRS issued a new proposed regulation (Proposed Treasury Regulation 1.42-19) to address some compliance issues regarding the AI test. The proposed regulation states that a single out-of-compliance unit could cause a 100% project to fail the minimum set-aside unless mitigating action is taken within 60 days after the end of the owner’s taxable year.

Understanding the Average Income Test

In this webinar, Amanda Lee Gross breaks down the changes to Section 42 of the Internal Revenue Code relating to this new election in a  easy to understand  format. Amanda Lee Gross also highlights the benefits and potential challenges owners may face with making this all-important election. Amanda Lee will also discuss the IRS proposed regulations, published October 30, 2020, and the severe implication noncompliance would have on a project’s tax credits.

Topics include:

  • Overview of the LIHTC program’s Minimum Set Aside (MSA) Requirements.
  • Understanding the available options.
  • Effect of the owner’s multiple building election on the MSA.
  • Method of Achieving the Average Income Set-Aside.
  • Calculating income and rent limits based on the new set-asides.
  • Complying with the Next Available Unit Rule at an Average Income project.
  • Potential effects of Noncompliance at an Average Income Project.

 

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Sign Up Today - $49 Per Person - VIew On-Demand

At all of our compliance webinars, attendees will receive more just world-class training. You will also receive the best training materials in the industry and a lively and interactive training environment. This includes,

• A certificate of attendance
• A content-rich PDF manual
• Knowledge checks and polls, and an interactive presentation

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