Overview of the Tax Credit Compliance Process

1
Overview of the Tax Credit Compliance Process

• Maryland Affordable Housing Coalition
• Compliance Workshop
• April 12, 2005
• Robert L. Ehrlich, Jr., Governor
• Michael S. Steele, Lt. Governor
• Victor L. Hoskins, Secretary
• Shawn S. Karimian, Deputy Secretary

2
Compliance Workload

• Responsible for compliance monitoring for the
  federal Low Income Housing Tax Credit Portfolio
• Reporting to IRS on -
• 286 active properties and
• 23,129 income restricted units.
• Responsible for income compliance monitoring for
  State Rental Housing, Group Home, HOME and
  Multifamily Bond Program Loans as well.

3
Organization Structure Who Do You Call?
4
Compliance Workflow
5
Compliance Resolution Process
6
Compliance Narrative

• Warning Letter to owner and copy to Asset
  Management starts correction period.
• Note Spectrum provides an Owners Report
  within 10 days of inspection giving owner 30 day
  correction period.
• 90 days to respond, or 180 days for good cause.
• Review response clear items or report
  corrected/ uncorrected noncompliance on the 8823.
• Prior to filing, contact owner or designee by
  phone to notify of pending action.
• 8823 approvals
• Tax Credit Senior Manager
• Tax Credit Administrator
• Director, Multifamily Housing and
• Director, CDA for signature.
• Within 45 days of receipt of response, original
  8823 to IRS with copies to
• Owner and
• Asset Management.

7
Breakout Sessions by Table

• Recertification Waivers
• Inspection to 8823 Issuance Timeline
• Layered Financing
• Student Status Procedures
• Consistency in Compliance Monitoring
• Please focus on process improvements and best
  practices to share with the group.