Tax Credit Monitoring provides information about WHEDA's monitoring program to assist Section 42 property owners and management companies.
Online Unit Status Reporting
Procorem is available for submitting Unit Status Reports electronically. Please visit our Forms, Manuals and Resources page for more information on Procorem including instructions on accessing the system and reporting details. Each property required to submit Unit Status Reports will need to designate a Delegated Administrator. A Delegated Administrator Agreement needs to be completed and submitted to DAA@wheda.com to gain initial access to the property specific WorkCenter. Once WHEDA has processed the Delegated Administrator Agreement, an email will be sent with an invitation to join the WorkCenter. Once the Delegated Administrator has access to the WorkCenter, additional users may be added to the system by following the instructions within the property WorkCenter.
Extended Use Period
Tax Credit Extended Use Period provides WHEDA's procedures and forms for tax credit properties completing the initial 15-year compliance period in accordance with section 42 regulations.
Features & Benefits
The Omnibus Reconciliation Act of 1989 provided an option for owners to exit the Housing Credit at the end of the initial 15-year compliance period.
Applies only to those properties that are eligible for opt-out at some time prior to the 29th year of usage. If eligible, owners may request that WHEDA find a buyer for the low-income portion of a property. WHEDA has one year to find a buyer at a pre-determined price, not to exceed the Qualified Contract Price (QCP).
How to Use the Tax Credit Opt-Out Provision
- Review both the Compliance Policy for Extended Use Period and the Compliance Policy for Opt-Out Provision. This information will help you determine the property's eligibility, and outlines compliance guidelines.
- If your property is not eligible for opt-out, or it is and you choose to remain in the program, follow the guidelines detailed in the Compliance Policy for Extended Use Period.
- If your property is eligible for opt-out, the first step in the process is to request a Qualified Contract by submitting a Qualified Contract Notification Letter and application materials to WHEDA.
- Upon receipt, WHEDA will review the submission and notify you within 15 days either that the requirement has been met or that the submission materials are incomplete.
- Once the notification application is complete, WHEDA has one year to find a buyer for the property. The one-year period begins as soon as all the required documentation is received by WHEDA.
- Before WHEDA will commence marketing a property, you must complete the Calculation of Qualified Contract price, which will establish the minimum price at which WHEDA will market the property and present an offer for its purchase.
- You must agree to list the property for sale with a broker who works with affordable housing properties and cooperate with WHEDA's marketing efforts.
- Credit on Credit Guidance
- Securing additional tax credits for existing Section 42 HTC developments
- Compliance Policy for Extended Use Period
- Provides information on reporting requirements and compliance monitoring for tax credit properties that are not eligible under the opt-out provision or who may opt-out but choose to remain in the program.
- Compliance Policy for Opt-Out Provision
- Provides information on exercising the Opt-Out Provision and the calculation of the Qualified Contract Price.
- Lease-Purchase LIHTC Projects
- Requirements for Partial Releases of LURA for Tenant-Purchased Units
- IRS Regulations
- List of links to IRS Regulations (26 CFR, Part 1, Section 42) on the web site of the United States Government Printing Office.
- Rev. Rul. 2004-82
- Link to revenue ruling 2004-82 on the Internal Revenue web site.
- 26 USC Section 42
- Link to Title 26, Section 42 of the United States Code on the Office of the Law Revision Counsel web site.
Income and Rent Limits
- Standard MTSP
- For tax credit and/or tax exempt bond-financed projects place in service 5/15/2023 or later, or those not covered by the ‘hold harmless’ provision.
- HERA Special
- For projects placed in service on or before 12/31/08 in HUD designated ‘hold harmless’ areas. Do not apply to HUD, RD, and HOME projects.
- Average Income
- For 4% tax credit projects who are 100% low-income and elect income averaging on their application beginning with the 2021-2022 QAP.