Category 11j – Violation(s) of the Vacant Unit Rule under Reg. 1.42-5(c)(1)(ix)
Category 11k – Owner Failed to Execute and Record Extended Use Agreement Within Time Prescribed by Section 42(h)(6)(J)
Category 11l – Low-Income Units Occupied by Nonqualified Full-Time Students *Exhibit 17-1, Student Status Verification*
Category 11m – Owner Did Not Properly Calculate Utility Allowance
Category 11n – Owner has Failed to Respond to Agency Requests for Monitoring Reviews
Category 11o – Low Income Units Used on a Transient Basis
Category 11p – Project is No Longer in Compliance Nor Participating in the LIHC Program
Category 11q – Other Noncompliance Issue – Qualified Nonprofit Organization Failed to Materially Participate
Category 11q – Other Noncompliance Issues
Line 13 – Building Disposition Exhibit 24-1, Explanation of Credit Recapture Requirements Under IRC §42(j)
Miscellaneous Noncompliance Topics - Tenant Misrepresentation or Fraud - Owner/Taxpayer Fraud
Tenant Good Cause Eviction and Rent Increase Protection
Explanations of Revisions
Revisions takes into account amendments to IRC §42 by the Housing Assistance Tax Act of 2008, HUD’s revisions to Handbook 4250.3, and revisions to Treas. Reg. 1.42-10. Revisions were also made to clarify existing text. Revisions are identified by surrounding new/revised text with astericks.
There are two new exhibits, Exhibit 4-1 and Exhibit 17-1.
Although the revision date is October 2009, no revisions were made to Chapters 3, 7, 13, 19, or 20.
The only technical change is the treatment of Unit 8 in Example 1 on page 4-29 and 4-30. In the January 2007 revision of the guide, the unit was considered a low-income unit. It is now considered a vacant market rate unit. Please note that the IRS will not challenge a taxpayer’s reliance on the January 2007 explanation for determining the status of a unit before January 1, 2010. See Chapter 4, footnote 45.
Revised October 2009