Representatives from the U.S. Government Accounting Office (GAO) recently testified before the Senate Finance Committee on ways to improve the low-income housing tax credit (LIHTC)—a federal tax credit for investors in low-income housing projects.
Under the LIHTC program, state and local housing finance agencies allocate LIHTC tax credit authority to developers and monitor compliance of multifamily housing projects financed through the LIHTC program. The testimony was based on GAO reports that found the requirements for allocating credits, reviewing costs, and monitoring compliance vary from state to state. Also, certain day-to-day administration practices raised concerns because they were not consistent with the LIHTC federal tax requirements imposed on allocating agencies.
This report provides highlights from the GAO testimony, as well as its recommendations for improving oversight of the LIHTC program. Read a September 2017 report [PDF 79 KB] prepared by KPMG LLP: What’s News in Tax: Government Accounting Office Recommends Ways to Strengthen the Low-Income Housing Credit Program
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