Qualified Contract Toolkit

Nebraska Investment Finance Authority (NIFA) has been designated to serve as the housing credit agency for the state of Nebraska and shall perform all responsibilities of a housing credit agency pursuant to Section 42 of the Internal Revenue Code (Code). Tax Credit developments allocated federal low-income housing tax credits in 1990 and thereafter may be eligible to make a qualified contract request to NIFA in 2005 and beyond. This can occur, for projects that have not waived the right to a Qualified Contract, at the Development Owner’s election, any time after year 14 in a 30-year Land Use Restriction Agreement (extended use agreement or “LURA”) or after year 29 in a 45-year LURA.

The Code and Internal Revenue Bulletin: 2012-22 contain some of the basic provisions for handling qualified contract requests. The purpose of this toolkit is to set forth the procedures to be followed by NIFA and the owners of Low-Income Housing Tax Credit (LIHTC) developments when initiating a qualified contract request process.

What is a Qualified Contract?

Development Owner Responsibilities

Initial Documentation Requirements

Final Documentation Requirements

NIFA's Responsibilities

One-Year Qualified Contract Period

Three-Year Decontrol Period

LIHTC Developments for Sale Under Qualified Contract