With the tax credits remaining on the property, an interest in the property can be sold, so the buyer gets the tax credits. 3. The HFA will implement the regulatory agreement and act against all murderers who violate its provisions. Such measures may include a declaration of delay and an application to a court for the specific implementation of the agreement. (8) Complete the housing marketing plan and all other fair housing and equal opportunity requirements. (3) Preserve the project as affordable housing within the meaning of Article 266(5). (5) compliance with other requirements defined by the HFA and defined in the regulatory agreement. (4) Continue to use the housing units for their original purposes. (1) The HFA shall enter into, in a descriptor form, a regulatory agreement between Mortgagor and HFA, in force for the term of the mortgage and loan, or (3) The HFA shall enforce the regulatory agreement and take action against all lenders who breach its provisions. Such measures may involve a declaration of delay and a request for performance of the contract to each jurisdiction. The Internal Revenue Service monitors owners` compliance with LIHTC laws, rules and regulations. According to new York State rules at 20 NYCRR § 2040.5 (a) “the regulatory agreement must be ready for public viewing in the owner`s rental office and credited in all marketing materials.” The owner must keep the building as a low-income apartment for at least 30 years.
During the first fifteen years of the regulatory agreement, the owner must confirm compliance with the rules and regulations each year with the Agency responsible for following the qualified allocation plan (Homes and Community Renewal in New York State). The last fifteen years are a period of prolonged use and do not have the same rules for certifying compliance. The lessor must attach to all LIHTC rental contracts the necessary summary of the rights and obligations of tenants through the regulation contract for low-income residential buildings. The rent to be charged to the tenant must be disclosed before the lease is signed. Landlords must confirm the tenant`s income each year by requesting a copy of the tenant`s federal tax return, W-2 tax form, or third-party proof from the tenant`s employer or a government agency. Multi-family real estate with a LURA contract or other regulatory contract (PAH) that limits rents and/or income is subscribed to and treated differently from traditional market real estate. In addition, the terms, costs and interest rates of loans may differ from those of a market-compliant property….