I.2. In a Different Building

• (1) As noted in Rev. Rul. 2004-82, Q&A #8, a similar rule applies when a household whose income is no greater than 140% of the income limit (or 170% for deep rent skewed projects) moves to a low-income unit in a different building within the project during any year of the 15-year credit period.37 The vacated unit assumes the status the newly occupied unit had immediately before it was occupied by the current resident.

• (2) Example 1: Household is First Occupant of Low-Income Unit

  • On May 31, 2004, of the first year of the credit period, an income qualified household moved into a new, never-occupied, low-income unit in Building A. On October 19, 2004, the household moved, and the lease was transferred, to a similar rent- restricted unit in Building B, which had never been occupied, and continued to occupy the unit until the end of the first credit year. The unit in Building A was not rented again until February 2005.

  • Only the unit the household actually occupies qualifies as a low-income unit.

  • The unit in Building A would qualify for May, June, July, August and September. The unit would not qualify as a low-income unit in October, November, or December for purposes of computing the Applicable Fraction for the first year under IRC §42(f)(2). The unit will continue to be treated as a never occupied unit until a qualified household moves in.

• The unit in Building B is a qualified low-income unit for October, November, and December.

• (3) Households residing in 100% LIHC projects, where a household’s current income is not known, can also transfer between buildings within the project.

• (4) Example 2: Household in 100% LIHC Project Transfers Between Buildings

  • On August 15, 2008, an income-qualified household moved into a lowincome unit. The unit was part of a 100% LIHC multi-building project as

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identified by the owner on Form 8609, line 8b. The household was not required to complete annual income recertifications and, therefore, the household’s current income was not known when, on January 15, 2010, the household requested a transfer to a low-income unit in another building within the project.

• The household may transfer to a low-income unit in another building within the project even though the household’s income is not known.

• J. Income Certifications Where Owner Acquires or Rehabilitates Existing Building

• J.1. Income Qualifying Households Before the Beginning of the 10Year Credit Period

  • (1) Under Rev. Proc. 2003-82, a unit occupied before the beginning of the credit period will be considered a low-income unit at the beginning of the credit period, even if the household’s income exceeds the income limit at the beginning of the first year of the credit period, if two conditions related to income qualifications are met, and the unit must is rent restricted.38

• (2) For households occupying a unit at the time of acquisition39 by the owner, the initial tenant income certification is completed within 120 days after40 the date of acquisition using the income limits in effect on the day of acquisition. The effective date of the tenant income certification is the date of acquisition since there is no move-in date.

  • (3) In the event that the household occupies a unit at the time of acquisition, but the tenant income certification is completed more than 120 after the date of acquisition, the household is treated as a new move-in. Owners use the income limits in effect at the time of the tenant income certification and the effective date is the date the last adult member of the household signed the certification, (this is an exception to the general rule for effective dates because there is no move-in date).

  • (4) When the household moves into a unit after the building is acquired but before the beginning of the first year of the compliance period, the tenant income certification is completed using the income limits in effect at the time of the certification and the he date the household moves into the unit.