Administrative Code

Virginia Administrative Code
Title 13. Housing
Agency 10. Virginia Housing Development Authority
9/30/2020

Chapter 160. Rules and Regulations for Administration of Rent Reduction Tax Credits

13VAC10-160-10. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Authority" means the Virginia Housing Development Authority.

"Board" means the Board of Commissioners of the authority.

"Disability" means (i) a physical or mental impairment which substantially limits one or more of the major life activities of such individual and includes any physiological disorder or condition, cosmetic disfigurement or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; and endocrine; or any mental or psychological disorder such as mental retardation, organic brain syndrome, emotional or mental illness and specific learning disabilities (the term "physical or mental impairment" includes, but is not limited to, such diseases and conditions as orthopedic, visual, speech and hearing impairments, cerebral palsy, autism, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, Human Immunodeficiency Virus (HIV) infection, mental retardation, emotional illness, drug addiction (other than addiction caused by current, illegal use of a controlled substance, and alcoholism) or (ii) a record of such an impairment; or being regarded as having such an impairment which includes a history of or being misclassified as having a mental or physical impairment that substantially limits one or more major life activities; or a physical or mental impairment that does not substantially limit one or more major life activities but that is treated by another person as constituting such a limitation; or a physical or mental impairment that substantially limits one or more major life activities only as a result of the attitudes of others toward such impairment; or none of the impairments defined above but the individual is treated by another person as having such an impairment; provided, however, that any physical or mental impairment described in (i) or (ii) shall be expected to result in death or shall have lasted continuously during the immediately preceding 12-month period or shall be expected to last continuously during the next succeeding 12-month period.

"Elderly person" means a person who exceeds, by any period of time, 62 years of age.

"Elderly tenant" means (i) an elderly person or (ii) a household in which any member is an elderly person.

"Eligible owner" means any person meeting the criteria for an eligible owner as set forth in the state code and these rules and regulations.

"Eligible tenant" means an elderly tenant, a tenant with a disability or a previously homeless tenant whose income does not exceed the limit described in these rules and regulations.

"Executive director" means the executive director of the authority or any other officer or employee of the authority who is authorized to act on his behalf or on behalf of the authority pursuant to a resolution of the board.

"HUD fair market rent" means the rent published by the U.S. Department of Housing and Urban Development for the Section 8 Rental Certificate Program.

"Income" means gross income (including but not limited to all salary, wages, bonuses, commissions, income from self-employment, interest, dividends, alimony, rental income, pensions, business income, annuities, social security payments, cash public assistance, support payments, retirement income and any other sources of cash income) which is being received by the elderly tenant, a tenant with a disability or a previously homeless tenant or is regularly paid to or on behalf of such tenant by a third party as of the application date. The income of any person who is living with an elderly person or person with a disability for the primary purpose of providing care to such person shall be excluded. All such income, provided it is not temporary, shall be computed on an annual basis to determine income for the purpose of program eligibility.

"Market rent" means the amount of rent, as determined by the authority pursuant to these rules and regulations, charged to other tenants for comparable units (other than tax credit units) in the same property or, if there are no such comparable units in the same property, for comparable units in the same market area.

"Owner" means an applicant for tax credits under these rules and regulations and, upon and subsequent to an allocation of such credits, means the owner of the tax credit unit to whom the tax credits are allocated.

"Person with a disability" means a person having a disability as defined in these rules and regulations.

"Previously homeless" means having, at any time within the 12 months preceding the commencement of the lease term, resided in a domestic violence shelter or homeless shelter.

"Previously homeless tenant" means (i) a previously homeless person or (ii) a household in which any adult member is previously homeless.

"Program" means the low-income housing tax credit program for rent reductions described in these rules and regulations.

"State code" means Article 3 (§ 58.1-331 et seq.) of Chapter 3 of Title 58.1 of the Code of Virginia.

"Tax credit rent" means the reduced amount of rent charged for the tax credit unit to the eligible tenant. As provided in 13VAC10-160-30, the tax credit rent shall be at least 15% less than the market rent.

"Tax credits" means the tax credits as described in §§ 58.1-339 and 58.1-339.9 of the Code of Virginia, as applicable.

"Tax credit unit" means a unit occupied or to be occupied by eligible tenants at reduced rents in order for the owner to be entitled to receive tax credits hereunder.

"Tenant" means a person or household who is applying for occupancy of, or is occupying, a tax credit unit.

"Tenant with a disability" means (i) a person with a disability or (ii) a household in which any member is a person with a disability.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0016 § 1, eff. November 21, 1990; amended, Virginia Register Volume 8, Issue 21, eff. July 1, 1992; Volume 12, Issue 23, eff. July 17, 1996; Volume 13, Issue 21, eff. July 1, 1997; Volume 16, Issue 26, eff. September 1, 2000; Volume 22, Issue 7, eff. December 1, 2005.

13VAC10-160-20. Purpose and applicability.

The following rules and regulations will govern the allocation and administration of tax credits by the authority pursuant to the state code.

Notwithstanding anything to the contrary herein, acting at the request or with the consent of the owner, the executive director is authorized to waive or modify any provision herein where deemed appropriate by him for good cause, to the extent not inconsistent with the state code.

The rules and regulations set forth herein are intended to provide a general description of the authority's processing and administration requirements and are not intended to include all actions involved or required in the processing and administration of the tax credits. These rules and regulations are subject to change at any time by the authority and may be supplemented by policies, rules and regulations adopted by the authority from time to time.

Notwithstanding anything to the contrary herein, all procedures and requirements in the state code must be complied with and satisfied.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0016 § 2, eff. November 21, 1990; amended, Virginia Register Volume 8, Issue 21, eff. July 1, 1992; Volume 12, Issue 23, eff. July 17, 1996; Volume 13, Issue 21, eff. July 1, 1997.

13VAC10-160-30. General description.

The state code was amended by adding sections numbered 58.1-339 and 58.1-339.9 relating to a tax credit for owners providing rent reduction for eligible tenants.

For taxable years beginning on or after January 1, 1991, through December 31, 2010, any individual or corporation receiving an allocation of tax credits pursuant to § 58.1-339 or § 58.1-339.9, as applicable, of the Code of Virginia shall, subject to the provisions of the state code and these rules and regulations, be entitled to a credit against the tax levied pursuant to § 58.1-320 or § 58.1-400 of the Code of Virginia, provided that the following requirements are satisfied:

1. The individual or corporation is engaged in the business of the rental of dwelling units (as hereinafter specified) and is subject to the Virginia Residential Landlord and Tenant Act, § 55-248.2 et seq. of the Code of Virginia, either by virtue of the provisions thereof or by virtue of the owner's providing for the applicability thereof pursuant to § 55-248.5 B of the Code of Virginia;

2. The owner provides a reduced rent to eligible tenants;

3. The rent charged to the eligible tenants is at least 15% less than the market rent;

4. To claim a credit under § 58.1-339 of the Code of Virginia for reduction of rents charged to a tenant on or after July 1, 1996, and before January 1, 2000: (i) a credit for rental reductions must have been validly claimed on the tax credit unit for all or part of the month of June 1996 and such tenant must have been an occupant of such tax credit unit on June 30, 1996, or (ii) the tenant must have been previously homeless;

5. To claim a credit under § 58.1-339.9 of the Code of Virginia for reduction of rents charged to a tenant on or after January 1, 2000, and prior to January 1, 2006, on a dwelling unit, a credit for rental reductions must have been validly claimed on such dwelling pursuant to § 58.1-339 of the Code of Virginia for all or part of the month of December 1999; and

6. To claim a credit under § 58.1-339.9 of the Code of Virginia for reduction of rents charged to a tenant on or after January 1, 2006, and prior to January 1, 2010, on a dwelling unit, a credit for rental reductions must have been validly claimed on such dwelling unit pursuant to § 58.1-339 of the Code of Virginia for all or part of the month of December 1999, and such tenant must have been an occupant of such dwelling unit on December 31, 2005.

The allowable tax credit amount shall be 50% of the total rent reductions allowed during the taxable year to the eligible tenants occupying the tax credit units. The amount of the rent reduction shall be equal to the market rent minus the tax credit rent. For this purpose, the tax credit rent shall include any rental subsidy payable on behalf of the eligible tenant under any governmental or private program.

If there are comparable units (other than tax credit units) in the same property, the market rent shall be determined by the authority to be the rent charged to other tenants for such comparable units. For the purpose of determining the amount of rent charged to other tenants for comparable units in the same property, the authority shall assume that the other tenants commenced and, if applicable, renewed their leases as of the same date or dates, and for the same term or terms as the eligible tenants and at the rents in effect on such date or dates.

If there are no other such comparable units in the same property, then the market rent shall be determined by the authority to be the rent charged for comparable units in the same market area. Such rent shall be (i) the rent most recently charged for the tax credit unit to a person (who may be the eligible tenant to be assisted) unrelated to the owner within the one-year period prior to the date of filing of the application, plus a rental increase in an amount determined by the authority to reflect increases in rents in the market area of such tax credit unit since the date such rent was last charged, or (ii) if no rental history as described in (i) exists, the HUD fair market rent allowed for a comparable unit in the same market area (as reduced, to the extent determined by the authority, for any utilities which are not to be included in the tax credit rent under the terms of the lease); provided, however, that the owner may demonstrate to the authority that the rent for a comparable unit in the same market area is higher than (i) or (ii) above, as applicable, and to the extent so demonstrated to the satisfaction of the authority, such higher rent shall be used.

Notwithstanding anything to the contrary herein, the market rent shall in no event exceed 150% of the HUD fair market rent allowed for comparable units in the same market area (as reduced, to the extent determined by the authority, for any utilities which are not to be included in the tax credit rent under the terms of the lease).

If the tax credit unit is subsidized or assisted under any governmental or private program, the comparable units in the same property or market area, as applicable, shall include only those units similarly subsidized or assisted.

Because the intent of the state code is to provide tax credits for the rental of dwelling units only, tax credits shall not be allocated or claimed for the leasing of land only, including without limitation mobile home lots. Tax credits may be allocated and claimed for the leasing of both a mobile home lot and the mobile home located thereon.

To be eligible for the program, a dwelling unit must contain separate and complete facilities for living, sleeping, eating, cooking and sanitation. Such accommodations may be served by centrally located equipment such as air conditioning or heating. Thus, for example, an apartment containing a living area, a sleeping area, bathing and sanitation facilities and cooking facilities equipped with a cooking range, refrigerator and sink, all of which are separate and distinct from other apartments, would constitute a unit.

In order to satisfy the requirement in § 58.1-339 or 58.1-339.9, as applicable, of the state code that the owner be an individual or corporation engaged in the business of the rental of dwelling units, the owner must intend or have intended at the time of application and must intend at all times thereafter to report, for federal income tax purposes, all rental and other income and any related expenses of the tax credit unit with respect to each tax year for which the tax credits are to be claimed for such tax credit unit.

The amount of credit for each individual or corporation for each taxable year shall not exceed $10,000 or the total amount of tax imposed by Chapter 3 (§ 58.1-300 et seq.) of Title 58.1 of the Code of Virginia, whichever is less. If the amount of such credit exceeds the taxpayer's tax liability for such taxable year, the amount which exceeds the tax liability may be carried over for credit against income taxes of such individual or corporation in the next five taxable years until the total amount of the tax credit has been taken.

Credits granted to a partnership or an electing small business corporation (S corporation) shall be passed through to the individual partners or shareholders in proportion to their ownership or interest in the partnership or S corporation.

The total amount of tax credits which may be approved by the authority in any fiscal year prior to fiscal year 1996-1997 shall not exceed $1,000,000. Commencing in fiscal year 1996-1997, the total amount of tax credits which may be approved by the authority in any fiscal year shall not exceed $250,000. Commencing in fiscal year 2000-2001, the total amount of tax credits which may be approved by the authority in any fiscal year shall not exceed $50,000. With the exception of tax credits claimed for units occupied by previously homeless tenants, no tax credits will be approved for a unit for any period after June 30, 1996, and before January 1, 2000, unless a tax credit was validly claimed for such unit for all or part of the month of June 1996. No tax credits will be approved for a unit for any period on or after January 1, 2000, and prior to January 1, 2006, unless a tax credit was validly claimed for such unit for all or part of the month of December 1999. No tax credits will be approved for a unit for any period on or after January 1, 2006, unless a tax credit was validly claimed for such unit for all or part of the month of December 1999 and unless the tenant was an occupant of such unit on December 31, 2005. No tax credits may be claimed for taxable years after December 31, 2010.

The authority may charge to each owner fees in such amount as the executive director shall determine to be necessary to cover the administrative costs to the authority. Such fees shall be payable at such time or times as the executive director shall require.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0016 § 3, eff. November 21, 1990; amended, Virginia Register Volume 8, Issue 21, eff. July 1, 1992; Volume 12, Issue 23, eff. July 17, 1996; Volume 13, Issue 21, eff. July 1, 1997; Volume 16, Issue 26, eff. September 1, 2000; Volume 22, Issue 7, eff. December 1, 2005.

13VAC10-160-40. [Repealed]

Historical Notes

Derived from VR400-02-0016 § 4, eff. November 21, 1990; amended, Virginia Register Volume 8, Issue 21, eff. July 1, 1992; repealed, Virginia Register Volume 12, Issue 23, eff. July 17, 1996.

13VAC10-160-41. [Repealed]

Historical Notes

Derived from Virginia Register Volume 13, Issue 21, eff. July 1, 1997; repealed, Virginia Register Volume 16, Issue 26, eff. September 1, 2000.

13VAC10-160-50. [Repealed]

Historical Notes

Derived from VR400-02-0016 § 5, eff. November 21, 1990; amended, Virginia Register Volume 8, Issue 21, eff. July 1, 1992; repealed, Virginia Register Volume 12, Issue 23, eff. July 17, 1996.

13VAC10-160-51. [Repealed]

Historical Notes

Derived from Virginia Register Volume 13, Issue 21, eff. July 1, 1997; repealed, Virginia Register Volume 16, Issue 26, eff. September 1, 2000.

13VAC10-160-55. Review and selection of application; allocation of tax credits.

After January 1, 2000, no tax credits shall be allocated by the authority, except allocations made prior to January 1, 2000, may be increased as provided in 13VAC10-160-120.

Upon compliance with the state code and these rules and regulations, the owner to whom an allocation has been made prior to January 1, 2000, shall be entitled to tax credits annually, in such amount as is determined by the authority pursuant to these rules and regulations, for each year beginning in the year for which such allocation is made and ending December 31, 2010, unless sooner terminated or reduced pursuant to these rules and regulations.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 13, Issue 21, eff. July 1, 1997; amended, Virginia Register Volume 16, Issue 26, eff. September 1, 2000; Volume 22, Issue 7, eff. December 1, 2005.

13VAC10-160-60. Eligibility of tenants and verification.

The occupancy of units entitled to tax credits is limited to elderly tenants, tenants with disabilities or previously homeless tenants whose incomes, as of initial occupancy of the tax credit unit by such tenants (or, if any such tax credit unit was occupied by such a tenant on January 1 of the first calendar year for which the tax credits were claimed for such tax credit unit, as of such January 1), did not exceed 80% of the median income for the area. Preference in occupancy of tax credit units must have been given to eligible tenants whose incomes were less than or equal to 50% of the median income for the area. The United States Department of Housing and Urban Development income limits for subsidized programs, as adjusted by family size, must have been used in determining such 80% and 50% of median income for the area.

In the case of tax credits to be claimed for any period after June 30, 1996, and before January 1, 2000, in order to be eligible an elderly tenant or a tenant with a disability must have been an occupant of the tax credit unit on June 30, 1996. In the case of tax credits to be claimed for any period on and after January 1, 2000, and prior to January 1, 2006, in order to be eligible the tenant must occupy a unit for which a tax credit was validly claimed for such unit for all or a part of the month of December 1999. In the case of tax credits to be claimed for any period on and after January 1, 2006, in order to be eligible the tenant must occupy a unit for which a tax credit was validly claimed for such unit for all or a part of the month of December 1999 and must have been an occupant of such unit on December 31, 2005.

Owners must obtain written income verification for eligible tenants who occupy a tax credit unit. The verification of income must be sent by the owner to each employer or the agency providing benefits along with a stamped, self-addressed return envelope. Such verification must be retained by the owner and a copy submitted to the authority (together with an executed confirmation of resident eligibility form and the verification of age, disability or previous homelessness) at the time that the eligible tenant was determined by the owner to be income eligible. Verification of income must be current as of a date no earlier than 90 days prior to the date (see first paragraph in this section) as of which the income of the eligible tenant was determined for eligibility purposes.

With respect to tax credits claimed for rental of tax credit units to tenants with disabilities, owners must have obtained a written verification of disability. Verification of said disability must have been obtained from a physician, diagnostic or vocational rehabilitation service center or the Social Security Administration.

With respect to tax credits claimed for rental of tax credit units to elderly tenants, owners must have verified the age of all persons claiming to exceed 62 years of age. Verification of Social Security benefits paid on the person's behalf is acceptable if a birth certificate could not have been obtained; provided, however, that any person receiving survivor Social Security benefits who did not exceed 62 years of age or did not have a disability is not eligible for occupancy of a tax credit unit.

With respect to tax credits claimed for rental of tax credit units to previously homeless tenants, owners must obtain a written verification that such tenant resided in a domestic violence shelter or homeless shelter during the 12 months preceding commencement of the lease term for the tax credit unit. Such written verification must be obtained from the homeless shelter or domestic violence shelter in which the previously homeless tenant resided.

The initial lease term for all eligible tenants occupying a tax credit unit must not be less than a 12-month period.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0016 § 6, eff. November 21, 1990; amended, Virginia Register Volume 8, Issue 21, eff. July 1, 1992; Volume 12, Issue 23, eff. July 17, 1996; Volume 13, Issue 21, eff. July 1, 1997; Volume 16, Issue 26, eff. September 1, 2000; Volume 22, Issue 7, eff. December 1, 2005.

13VAC10-160-70. Administration of allocation of tax credits.

Except for increases in allocation as provided in 13VAC10-160-120, tax credits shall not be allocated by the authority after January 1, 2000. Allocations of tax credits made by the authority prior to June 30, 1996, for units occupied by elderly and disabled tenants or prior to January 1, 2000, for units occupied by previously homeless tenants shall remain in effect, subject to the provisions of these rules and regulations.

The amount of tax credits claimed by an owner in any taxable year for tax credit units shall not exceed the amount of tax credits allocated to such owner for such tax credit units. The executive director may require that owners to whom tax credits have been allocated shall submit from time to time or at such specified times as he shall require, written confirmation and documentation as to the status of each tax credit unit and its compliance with the application and these rules and regulations. If on the basis of such written confirmation and documentation and other available information the executive director determines that any tax credit unit does not or will not qualify or will not continue to qualify for such tax credits, then the executive director may terminate or reduce the allocation of such tax credits. Without limiting the foregoing, the owner of any tax credit units shall lease the tax credit units to eligible tenants at reduced rents such that the aggregate of such rent reductions shall be no less than the aggregate of the rent reductions set forth in the application for tax credits for such units. In the event that the owner shall fail to so lease such tax credit units, the authority may, upon its determination that the owner is unable or unwilling to utilize fully its allocation of tax credits for such tax credit units, terminate or reduce such allocation, as it shall deem appropriate.

Commencing with fiscal year 2000-2001, the executive director may terminate or reduce any allocations of tax credits as he shall determine to be necessary or appropriate to satisfy the requirement in the state code that the total amount of tax credits approved by the authority in any fiscal year after June 30, 2000, not exceed $50,000 and to maximize the utilization and geographic distribution of the tax credits.

The authority shall have the right to inspect the tax credit units and related property and improvements from time to time, and the tax credit units and related property and improvements shall be in a state of repair and condition satisfactory to the authority. The authority may require the owner to make necessary repairs or improvements, in a manner acceptable to the authority, as a condition for receiving an allocation of tax credits or for qualifying for certification to the Department of Taxation as described hereinbelow.

The executive director may establish such deadlines for the owner of units to qualify for the tax credits and to comply with the application and these rules and regulations as he shall deem necessary or desirable to allow the authority sufficient time, in the event of a reduction or termination of such owner's allocation, to allocate such tax credits to other eligible owners pursuant to 13VAC10-160-120.

Any material changes to the condition, use or occupancy of the tax credit unit or in any other representations, facts or information, as contained or proposed in the application, occurring subsequent to the submission of the application for the tax credits therefor shall be subject to the prior written approval of the executive director. As a condition to any such approval, the executive director may, as necessary to comply with these rules and regulations and the state code, reduce the amount of tax credits allocated or impose additional terms and conditions with respect thereto. If such changes are made without the prior written approval of the executive director, he may terminate or reduce the allocation of such tax credits or impose additional terms and conditions with respect thereto.

In the event that any allocation of tax credits is terminated or reduced by the executive director under this section, he may allocate such tax credits (in the amount of such termination or reduction) to eligible owners (other than the owners whose tax credit allocation was so terminated or reduced) in the manner described in 13VAC10-160-120 or in such other manner as he shall determine consistent with the requirements of the state code.

If an owner shall transfer any of the tax credit units to a transferee which is eligible for such tax credits under the state code and these rules and regulations, such transferee shall thereupon be entitled to the allocation of tax credits for such tax credit units and shall, for the purposes of these rules and regulations, be thereafter deemed the owner for such tax credits.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0016 § 7, eff. November 21, 1990; amended, Virginia Register Volume 8, Issue 21, eff. July 1, 1992; Volume 12, Issue 23, eff. July 17, 1996; Volume 13, Issue 21, eff. July 1, 1997; Volume 16, Issue 26, eff. September 1, 2000.

13VAC10-160-80. Tax credit period.

Each period for which an owner may claim tax credits for any tax credit unit shall commence upon the date that the tax credit unit is occupied by an eligible tenant pursuant to a lease providing for a 12-month term and for the payment of rent in the amount of the tax credit rent. Such period shall not commence prior to the allocation of the tax credits by the authority to the owner, except that if the tax credit unit is so occupied from the first day of the month in which the allocation of tax credits is made, such period shall commence on such first day of the month. Such period shall continue until termination of occupancy as described in 13VAC10-160-90 or until December 31, 2010, whichever occurs first. However, in no event shall any such period commence and continue unless the tax credit unit is and remains in a state of repair and condition satisfactory to the authority, all documentation required by 13VAC10-160-60 has been and is submitted to the authority in accordance herewith, and all other applicable requirements of the state code and these rules and regulations have been and are satisfied. If the owner shall be entitled to claim tax credits on any tax credit unit for a portion of a month during such period, the rent reduction shall be calculated pro rata based upon the number of days in such month that the owner is so entitled to claim tax credits or, with respect to the termination of occupancy, shall be calculated as provided in 13VAC10-160-90.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0016 § 8, eff. November 21, 1990; amended, Virginia Register Volume 8, Issue 21, eff. July 1, 1992; Volume 12, Issue 23, eff. July 17, 1996; Volume 16, Issue 26, eff. September 1, 2000; Volume 22, Issue 7, eff. December 1, 2005.

13VAC10-160-90. Maintenance of records; submission requirements; termination of occupancy.

Owners shall be responsible for obtaining and maintaining all documentation required by the authority to evidence that the tax credit units qualify for tax credits under the program. Owners will be responsible for providing this documentation to the authority for review within 30 days following the end of each calendar year; provided, however, that the documents listed in subdivisions 2 a, b, c and g of this section must be submitted at the time that the eligible tenant was determined by the owner to be eligible. The tax credit unit will not qualify for tax credits if all required documents, in the form required by the authority, are not so provided. Required documentation to be submitted to the authority includes, but is not limited to, the following:

1. A listing (including dates of occupancy) of all tenants who occupy or occupied a tax credit unit entitled to a tax credit for that year.

2. A complete certification package for each eligible tenant receiving the reduced rent. The certification must include:

a. A completed and executed confirmation of resident eligibility form.

b. Verification of income.

c. Verification of age, disability or previous homelessness.

d. A certification from the tenant verifying:

(1) What unit type/size was occupied;

(2) Number of months said unit was occupied;

(3) The amount of rent paid;

(4) How many months that amount of rent was paid; and

(5) In the case of the tax credits claimed for any period after June 30, 1996, and before January 1, 2000 (except for tax credits claimed for units occupied by previously homeless tenants), occupancy of the tax credit unit by the tenant on June 30, 1996.

e. A certification of the owner that preference in occupancy of the tax credit units was given to eligible tenants whose incomes were less than or equal to 50% of the median income for the area (the waiting list for tax credit units during the calendar year identifying the persons applying for such units and their incomes shall be maintained by the owner and shall be available for inspection by the authority).

f. Rent rolls for the comparable units in the same property as the tax credit units setting forth the rents charged to other tenants, if rents for such comparable units are to be used to determine the amount of the rent reduction pursuant to 13VAC10-160-30.

g. Copies of leases for each tax credit unit.

h. In the case of the tax credits claimed for any period after June 30, 1996, and before January 1, 2000, other than tax credits claimed for units occupied by previously homeless persons, a certification of the owner that a tax credit for rental reductions was validly claimed on the tax credit unit for all or part of the month of June 1996, and that the tenant receiving such rental reductions was an occupant of such tax credit unit on June 30, 1996.

i. In the case of the tax credits claimed for any period on and after January 1, 2000, and prior to January 1, 2006, a certification of the owner that a tax credit was validly claimed for the unit for all or part of the month of December 1999.

j. In the case of the tax credits claimed for any period on and after January 1, 2006, a certification of the owner that a tax credit was validly claimed for the unit for all or part of the month of December 1999 and that the tenant was an occupant of such unit on December 31, 2005.

In the event of termination of occupancy, the rent reduction shall be calculated pro rata based upon the number of days determined in the following manner. In the event of death of the only elderly person, person with a disability or previously homeless person occupying a tax credit unit, the owner must obtain a copy of the death certificate or must provide other acceptable documentation of death; and the number of days for which an owner is entitled to tax credits on such deceased person's tax credit unit shall be determined by the date of death. If the eligible tenant abandons the tax credit unit, the earliest of the date the owner discovers the tax credit unit is vacant, the date any utility company terminates service on the tax credit unit, or the date 30 days after abandonment will be used to determine the number of days for which the tax credit unit is entitled to the tax credit. If the tax credit unit shall not be so abandoned but the eligible tenant shall not occupy the tax credit unit for a period of 30 days (or such longer period of time as the executive director may approve), the end of such period shall be used to determine the number of days for which the tax credit unit is entitled to the tax credit. If the lease is terminated for any reason other than those set forth above in this paragraph, the effective date of termination shall be used to determine the number of days for which the tax credit unit is entitled to the tax credit.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0016 § 9, eff. November 21, 1990; amended, Virginia Register Volume 8, Issue 21, eff. July 1, 1992; Volume 12, Issue 23, eff. July 17, 1996; Volume 13, Issue 21, eff. July 1, 1997; Volume 16, Issue 26, eff. September 1, 2000; Volume 22, Issue 7, eff. December 1, 2005.

13VAC10-160-100. Certification to the Virginia Department of Taxation.

On or before March 15 of each calendar year, the authority shall certify to the Virginia Department of Taxation the name of each owner entitled to claim a tax credit for the preceding calendar year and the total amount of tax credits which each such owner is entitled to claim under the state code and these rules and regulations and shall further certify that each such owner claiming a credit provided the rent reductions as authorized under the state code and these rules and regulations. The owner shall be entitled to claim tax credits for such preceding calendar year only in the amount for which the authority makes such certifications.

Statutory Authority

§§ 36-55.30:3 and 58.1-339 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0016 § 10, eff. November 21, 1990; amended, Virginia Register Volume 8, Issue 21, eff. July 1, 1992.

13VAC10-160-110. Notification to the Virginia Department of Taxation of noncompliance with state code or these rules and regulations.

If subsequent to the certification in 13VAC10-160-100 the executive director shall become aware of noncompliance with any of the provisions of the state code or these rules and regulations by any owner for whom such certification was made and if such noncompliance would result in a reduction in amount of tax credits that such owner claimed or could have claimed, the executive director shall, within 90 days, notify the Virginia Department of Taxation of such noncompliance. Such notification shall shall identify the owner and shall describe the noncompliance.

Statutory Authority

§§ 36-55.30:3 and 58.1-339 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0016 § 11, eff. November 21, 1990; amended, Virginia Register Volume 8, Issue 21, eff. July 1, 1992.

13VAC10-160-120. Authority to increase allocation of credits.

Notwithstanding anything to the contrary herein, the executive director may, in his discretion and without ratification or approval by the board, increase the amount of credits allocated to a tax credit unit for the purpose of allowing the owner to continue to comply with the requirement in the state code and these rules and regulations that the rent charged to the eligible tenant be at least 15% less than the market rent. Any request for such increase shall include such information, opinions, certifications and documentation as the executive director may require.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 12, Issue 23, eff. July 17, 1996.



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