The IRS safe harbor rule for tax credit sites lets low-income residents qualify for units before the beginning of the first taxable year of a building's tax credit period. Rev. Proc. 2003-82 outlines the methods by which owners must determine whether over-income residents are occupying any low-income units at the beginning of the first year of the credit period, and, if that is the case, comply with the available unit rule. At the time a building is acquired, its current low-income residents may be certified as eligible for their units for up to 120 days after the acquisition date. if a resident's income exceeds the applicable income limit at the beginning of the first credit year, the unit is still considered low income if the income of the household is first tested for purposes of the available unit rule at the beginning of the first credit year, and the unit has been rent-restricted since the initial qualification date of the resident.
OctOber 2008 TAX CREDIT HOUSING
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