Low Income Housing Tax Credits

Housing tax credit delivers social benefit and significant tax credit

Since the low-income housing tax credit was enacted as part of the Tax Reform Act of 1986, Wall, Einhorn & Chernitzer has helped many businesses in Virginia maximize their allocation of low-income housing tax credits. Our firm takes great pride in helping clients succeed in the affordable housing sector, which is devoted to the principle that each person deserves affordable housing.

The Federal Low-Income Housing Tax Credit (LIHTC) program is sponsored by the U.S. Treasury Department and provides tax credits for qualified costs of acquisition, rehabilitation and/or new construction of affordable housing. We provide hands-on, professional guidance to manage the technical and regulatory requirements of the low-income housing credit.

We consult on all aspects of service relating to low-income housing tax credit projects.

Our services related to the housing tax credit include:

• Accounting for building and construction costs
• Audits, reviews and compilations
• Assistance with 8609 applications
• Break-even analysis
• Calculation and allocation of surplus cash
• Compliance testing of low-income tenants
• Cost certifications
• Debt service coverage analysis
• Eligible vs. non-eligible basis analysis
• General, limited partnership, and development company tax return preparation
• HUD financial reporting and disclosures
• Review of complex partnership income tax issues
• Ten percent test
• Initial year tax credit computations

The Federal Low-Income Housing Tax Credit is administered in Virginia by VHDA, which encourages the development of affordable rental housing by providing property developers a federal income tax credit. The organization is a self-supporting, not-for-profit organization created by the Commonwealth of Virginia in 1972, to help Virginians attain quality, affordable housing.