ARTICLES03/20/2024
In this article just published in the American Bar Association Journal on Affordable Housing & Community Development Law, Glenn Graff and Sara Langan discuss timing issues related to the 50% test for the 4% Low-Income Housing Tax Credit (“LIHTC”) available for tax-exempt bond financed Projects. LIHTC Projects can qualify for automatic 4% LIHTCs if at least 50% of the aggregate basis of the Project’s land and building are financed with tax-exempt obligations. The need to satisfy the so-called “50% test” is critical to the viability of such Projects. The article discusses some of the complexities in arriving at a successful 50% test and the timing issues that can arise for some transactions.
