Qualified Contract

Section 42(h)(6)(E)(i)(II) of the Internal Revenue Code created a provision that housing credit agencies respond to the request for presentation of a qualified contract for HTC projects with expiring compliance periods. The request for presentation of a qualified contract is a request that the housing credit agency find a buyer (who will continue to operate the property as a qualified low-income property) to purchase the property for a qualified contract price pursuant to IRS regulations.

If the housing credit agency is unable to find a buyer within one year, the extended use period is terminated, subject to a three-year period following its termination. During this three-year period following termination, existing low income tenants cannot be evicted or tenancy terminated for other than good cause and rents cannot exceed the allowable HTC rent limits.

Required Documents

Properties For Sale