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Guide for Completing Form 8823 - page 36 / 197





36 / 197

100% LIHC Projects

If the project is a 100% LIHC project12, then the new tenant’s income is added to the income disclosed on the existing household’s original income certification.*

Example *2: Owner is not Subject to Annual Income Recertification Requirement

Mary and her two daughters initially income qualified and moved into an LIHC unit on March 1, 2005. The project is a 100% LIHC project for which the owner had a waiver of the income recertification under Rev. Proc. 94-64 for periods ending before August July 30, 2008. Mary never completed an annual income recertification for 2006 through 2008, and under IRC §142(d)(3), will not be required to complete an income recertification in the future.

Mary met Bill and they decided to marry in October 2008. The new couple would like to live in the LIHC unit Mary occupies. Bill completes a tenant income certification and moves into the unit on October 25, 2008.

The certification effective date continues to be March 1, 2005, but no annual income recertification is required. Since the owner will always rent the next available unit to an income-qualified household as a low-income unit, the Available Unit Rule will not be violated if the household’s income, when Bill’s income is added to Mary’s income at the time she moved in with her daughters, exceeds 140 percent of the income limit (170 percent in deep rent skewed projects).*

*Original Household No Longer Occupies Unit*

A household may continue to add members as long as at least one member of the original low-income household continues to live in the unit. Once all the original tenants have moved out of the unit, the remaining tenants must be certified as a new income-qualified household unless:

  • 1.

    *For mixed-used projects, the newly created household was income qualified, or the remaining tenants were independently* income qualified at the time they moved into the unit.

  • 2.

    *For 100% LIHC buildings, the remaining tenants were independently income qualified at the time they moved into the unit.*

12 *The same rule applies if, before July 31, 2008, the owner received a waiver of the income recertification requirement under Rev. Proc. 2004-28 or Rev. Proc. 94-64.*


Revised October 2009

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