8609 – IRS form completed by property owner which indicates set-aside, placed in service date, BINs and other important information.
A
Adapted Units – Units modified to accommodate those persons with mobility and / or sensory disabilities; newer properties are required to have 5% of their property to have these.
Adjusted Annual Income – Total annual gross income minus any medical expenses, dependent allowances or an elderly allowance; for RD and HUD properties only.
Allocation Date – Date tax credits were allocated to the property by the state agency.
AMI – Area Median Income.
Asset – Items of value that may be converted into cash (bank accounts, 401k accounts, CDs, real estate, etc.).
B
BIN – Building Identification Number (used on TICs per building).
C
Co-Head of Household – Household member that is designated by the Head of Household and is not a dependent.
Common Areas – Areas in and around the property that are included in the basis (with the exception of the land and parking lots).
Compliance Audit – Event scheduled by state agencies and / or other investors to ensure property meets all regulatory requirements.
Compliance Period – First fifteen (15) years after a property is placed in service; property must remain in compliance during this period.
D
Dependent – Any person under the age of 18 who can be claimed in someone else’s care in the household. Full time students over the age of 18 are also considered dependents.
Dependent Allowance – Allowance given to HUD and RD households for each and every dependent ($480 per dependent).
E
Effective Date – Date that the income certification is effective.
EHO – Equal Housing Opportunity
Elderly Allowance – Allowance given to HUD and RD households that have a person 62 years of age or older and / or disabled household members (allowance per household, not per member).
Eligible Basis – Portion of the property allocated credits
Empty Unit – Unit that has never been occupied after tax credits have been received
Extended User Period – Period after the Compliance Period; property must continue to remain in compliance during this period but full-time students allowed as long as there are no other funding requirements (not applicable to Idaho).
F
Full-time Household – A person enrolled in a higher education institution full-time (as defined by the institution) for five (5) months during a calendar year
H
Head of Household – Household member designated by all other household members to be the Head of Household. Must be over the age of 18.
HOME – Type of funding; can be low (50%) or high (65%). Some requirements include minimum occupancy standards and bank statements in leiu of bank verifications.
Household Composition – What the household consists of (i.e. who will live in the household for eligibility purposes — Head, Co-Head, Spouse, Dependent, etc.
HUD -Department of Housing and Urban Development; federal department that issues income limits, rent limits, policies and procedures.
I
Imputed Income – Amount considered income that is applied to combined assets over $5,000 (2%).
Income – All amounts, monetary or not, that go to or are received on behalf of the head, spouse or co-head (some exceptions apply).
Income Limit – Limit, as calculated by HUD, that a low-income household cannot exceed in order to qualify for a unit.
Initial Certification – Move in certification
L
LIHTC – Low Income Housing Tax Credit
M
Market Unit – Any non-LIHTC unit
Maximum Allowable Gross Rent – Maximum amount of rent before any adjustments, as calculated annually by HUD.
Maximum Allowable Net Rent – Rent paid by residents after any applicable adjustments (i.e. utility allowance).
Minimum Set-Aside – The federally required minimum level of tax credit units in a property (typically 40%).
Move In Date – Date household takes possession of a unit; should be same day as lease start date.
N
Next Available Unit Rule (140% rule) – Tax Credit rule that states if an income of a household exceeds 140% of the income limit at recertification, the next available apartment must be rented to an income-eligible household .
O
Occupied Unit – Any unit that has an eligible household living in it.
P
Placed in Service Date – Date a building is ready and available for occupancy
Q
Qualified Basis – The “claimable” portion of credits in a property
R
RD – Rural Development; type of funding which households are able to receive Rental Assistance and pay rent at 30% of their adjusted annual income; can be family or elderly.
Real Property – Any real estate (house, condo, etc.) that an applicant / resident may own or may have owned.
Recertification – Certification of income and assets that should be effective twelve (12) months after the last certification.
Regulatory Agreement – Agreement between the owner and the state agency which outlines all requirements on the property. Must abide by the requirements as long as the agreement indicates.
S
Section 8 – A portable “voucher” distributed by a Housing Authority which allows a household to move into a Tax Credit property and only pay a certain portion of the rent; the other portion is paid by Section 8.
Set-Aside – Amount of AMI in which a unit is designated (50%, 55%, 60%, etc.)
Staff Unit – Unit designated for a manager or maintenance person; considered a market unit.
T
Third-Party Verifications – Verifications required to be sent directly to third-parties to verify income, assets, medical expenses or childcare expenses
U
Utility Allowance – An “allowance” provided to residents for any utilities or services that are required to be paid by a household.
V
Vacant Unit – Any unit that is currently unoccupied but has had an income-eligible household live in it prior.
Vacant Unit Rule -Tax Credit rule that states you must have a vacant unit ready for occupancy within a reasonable amount of time after move out and be actively marketing the unit in order to continue to receive tax credits.
W
Waiting List – List managers use to place applicants in the order in which a completed application was received for the next available apartment.