Apartment buildings, single-family homes, townhouses, and duplexes can meet the criteria for the credit. The below-mentioned income and gross rent criteria must be met by owners and developers.<\/p>

The tenants whose income is 50% or less of the area’s median income adjusted for family size (AMI) must occupy at least 20% of units.<\/p>

The tenants with an income of 60% or less of AMI should be occupying at least 40% of the units.<\/p>

The tenants with an average income of no more than 60 % of AMI should occupy at least 40% of the units, and the tenants with income greater than 80% of AMI do not qualify to occupy any units.<\/p>

Depending upon the share of tax credit rental units in the project the requirements for the gross rent test is that the rents should not go above 30% of either 50 or 60% of AMI.\u00a0<\/p>

All LIHTC projects should follow the income and rent tests for 15 years or till the credits are recalled. Along with that, there is an imposition of an extended compliance period of thirty years.<\/p>

Corporations that have sufficient income tax liability to take advantage of non-refundable tax credits are the Investors in LIHTC projects.<\/p>

For instance, for LIHTC investments the financial institutions have a good chunk of sizable income tax liabilities and have a far-sighted planning period, hence they usually receive credit in Community Reinvestment Act<\/u><\/a>.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t