Low-income housing tax credit (LIHTC) professionals must consider a wide variety of factors when designating units within their projects. Being well-versed in the designation process will have significant impacts on the profitability and overall success of LIHTC projects.
“Every LIHTC professional needs to fully recognize the various requirements of designating units, particularly for the average-income set-aside,” said A.J. Johnson, Housing Certified Credit Professional (HCCP) and owner of A.J. Johnson Consulting Services, Inc. “It is likely very soon that average-income set-aside will become the default for owners and investors, so there is a lot in play for stakeholders to focus on underwriting tax credit deals and limiting other forms of financing.”
Johnson will cover the essentials of LIHTC unit designations during a Dec. 12 webinar, Designating Units in an LIHTC Average-Income Project. He and moderator Missy Covington, HCCP and vice president of compliance at Raymond James Affordable Housing Investments, will discuss key issues such as timing designations before lease-up, when one can redesignate a unit and how the available unit rule impacts redesignations.
There will also be an in-depth discussion of how increasing household incomes affect unit designations in LIHTC average-income projects.
After completing the course, participants will better understand:
- How and when to designate units
- When to change a LIHTC unit designation
- The applicable fraction and its impact on the available unit rule