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Extended Low-Income Housing Commitment

Written by Harold Tucker, Spectrum Enterprises

What is it?

An extended low-income housing commitment is the agreement between the LIHTC property owner/taxpayer and the state housing finance agency. This agreement extends the low-income housing requirements for a minimum of a full 30 years. Federal law requires a minimum of an additional 15 years of compliance for all properties with an allocation of credits from 1990 or later. Properties must comply with program restrictions (i.e. deep skewed units, qualified basis, rent restricted, etc…) embodied in this document. Remember, the ELIHC stipulates the terms on which the credits were awarded by the state and outline any special set-asides or terms to which the owner agreed in return for the credits.

As state tax credit monitors here at Spectrum we will often realize that managers believe the auditing process is over once they are done with their initial 15 years of compliance. This is not true! In most states the monitoring process continues. For example, in Massachusetts they continue on with a 3 year rotation of monitoring the LIHTC properties during the extended use period. In Connecticut they monitor all properties in their extended use period on a five year rotation. In addition, it is still required in those states that all End Of Year documentation be provided to the State Agency or Authorized Delegate (Spectrum) annually. I have seen Extended Low-Income Housing Commitments up to 99 years. If you have not reviewed your ELIHC recently (or ever) I highly recommend obtaining a copy immediately. Thank you and we will see you on the frontlines.

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