TO: Owners of Low Income Housing Tax Credit Rent-Restricted Housing Projects
FROM: Kelly Schultze, LIHTC Compliance Manager
DATE: June 15, 2018
RE: Required Filing of Information with County Assessors
In 2005, the Nebraska Legislature passed LB 263, which provides specific guidance to county assessors when valuing § 42 rent-restricted housing projects. County assessors are now required to perform an income-approach calculation when considering the assessed valuation to place on these projects. In order to provide the county assessors with information to perform the income approach, owners of these projects are now required by LB 263 to file with the county assessor, on or before July 1 of each year, certain information relating to the operations of the project.
This memorandum serves as a reminder to send the following information to the Nebraska Department of Revenue for your project(s) no later than July 1, 2018:
- Income and expense data for the project for the prior year; and
- A description of the applicable land use restrictions that apply to the project, a description of the mortgage loans, including the loan amount, interest rate, amortization period and latest audit.
Please read the Section 42 Rent Restricted Housing Projects Report Form Instructions at the following link: http://www.revenue.nebraska.gov/PAD/rent-restricted_housing/misc/Instructions_for_Section42_Form.pdf.
The Income and Expense Reporting Form is available at the following link: http://www.revenue.nebraska.gov/PAD/rent-restricted_housing/misc/Section42_Reporting_Form.xlsx
as an Excel spreadsheet.
The applicable § 42 land use restriction information is contained on the summary page of your NIFA Land Use Restriction Agreement (LURA); other funding program documents should contain any additional restrictions. In your description of the applicable land use restrictions, you will want to note the time period the restrictions will apply, the percentage of units that are restricted, the income and rent restrictions that apply, whether there are targeted rent levels, and any other relevant restrictions that apply to your project.
If you have any questions regarding this reporting, please contact the Department of Revenue at firstname.lastname@example.org.
In addition, please send a copy of the Income and Expense Reporting Form to NIFA via email to email@example.com.