LIHTC (Tax Credits)
Qualified Contract Process
Tax Credit properties allocated federal low income housing tax credits (LIHTCs) in year 1990 and thereafter will be eligible for an “option year” in 2005 and beyond. This option year can occur, at the Project Owner’s election, any time after year 14 in a 30 year land use restriction agreement (extended use agreement or “LURA”).
If a Project Owner desires to sell the property, such Project Owner must notify NIFA using the process outlined below. Once complete and proper notice has been received, NIFA has one year to find a buyer for the project at a pre determined price, not to exceed the “Qualified Contract Price” (QCP). The qualified purchaser may be a nonprofit or for profit entity that agrees to maintain the affordable housing units and fulfill all requirements of the LURA for the remainder of the extended use period.
A list of properties with option years is posted on NIFA’s website. See Tax Credit Property Option Years List. Project Owners who believe the property they own is eligible for the option year should contact NIFA.
Project Owners who elect to exercise their option year must complete the following information and provide all required due diligence documentation listed therein. These forms are located below:
Qualified Contract Materials
Project Owner Responsibilities/Certifications and Commitment
LIHTC Projects For Sale Under Qualified Contract