Archive for the ‘End of Year Reporting’ Category

Wait Lists at LIHTC Properties

Thursday, September 27th, 2012

Twice in the past 24 hours we received a call asking if keeping a wait list is required for tax credit properties so it seems the issue should be discussed.

While Section 42 itself has no requirements for owners maintaining wait lists there are two very good reasons to do so: The Vacant Unit Rule and General Use compliance.

The Vacant Unit Rule (VUR) requires owners to make reasonable attempts to re-rent units. This means marketing. It can be reasonably presumed that if you have a wait list for your units you’ve marketed.

By Lois Churchill, Head of State Monitoring

The IRS has stated that failure to market vacant units is not only a violation of the VUR but also a general use violation. How are people supposed to know you have units if you don’t market? If you don’t keep wait lists for your tax credit properties then you’d better have marketing either continual or started each and every time you receive a notice to vacate from a tenant.

Other programs involved with your property may require you to maintain a wait list. If you do keep wait lists be sure to do frequent, but at least annual, updates to keep your list fresh!


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