Form 8703

(Rev. December 2021)

Department of the Treasury 

Internal Revenue Service 

Annual Certification of a Residential Rental Project

(Complete a separate Form 8703 for each project.) 

For calendar year 

▶ Go to www.irs.gov/Form8703 for the latest information.

OMB No. 1545-1038

Part I General Information Check if Amended Return ▶

Operator of project Taxpayer identification number of operator 

Street address, city or town, state or province, country, ZIP or foreign postal code

Owner of project Taxpayer identification number of owner

Street address, city or town, state or province, country, ZIP or foreign postal code

Address of building/project (Do not use P.O. box.) Report number (For IRS Use Only) 

1 Check the box for the test elected for the project: 

a 20-50 test b 40-60 test c 25-60 test (NYC only) 

d 20-60 test 

(GO Zone, Midwestern disaster areas, 

and Hurricane Ike disaster areas only) 

e 40-70 test 

(GO Zone, Midwestern disaster areas, 

and Hurricane Ike disaster areas only) 

2 Date (MM/DD/YYYY) the qualified project period began . . . . . . . . . . . . . . . ▶ / / 

3a Was a low-income housing credit allocation issued by a housing credit agency for this project? . ▶ Yes ▶ No 

b If “Yes,” enter the building identification number (BIN) assigned to the building by the housing credit 

agency (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . ▶

4 Check “Yes” if during the year reported on this form, there were no residential units in the project that were 

occupied by a new resident whose income exceeds the applicable income limit. If otherwise, check “No.” ▶ Yes ▶ No 

If “Yes,” complete lines 5, 11, 12, and 13 in Part II, and skip lines 6 through 10.

Part II Annual Determinations 

5 Total number of residential rental units in project . . . . . . . . . . . . . . . . 5

6 Number of units actually occupied by individuals whose income does not exceed the applicable 

income limit (see instructions) . . . . . . . . . . . . . . . . . . . . . . 6

7 Number of units occupied by continuing residents whose income is treated as not exceeding 

the applicable income limit (see instructions) . . . . . . . . . . . . . . . . . 7

8 Total number of low-income units in project (add lines 6 and 7) . . . . . . . . . . . 8

9 Divide line 8 by line 5 and enter the percentage (If the line 9 percentage is less than the 

percentage for the test elected in Part I, item 1 (i.e., 20%, 40%, or 25%), see instructions.) . . 9 % 

10 Deep-rent skewed project election (see instructions): 

a Number of 40%-and-under low-income units . . . . . . . . . . . . . . . . . 10a 

b Divide line 10a by line 8 and enter the percentage . . . . . . . . . . . . . . . 10b % 

11 Number of low-income units vacated during the calendar year . . . . . . . . . . . 11

12 Number of low-income units vacated during the calendar year and occupied by new residents 

who were low-income residents at the time of occupancy . . . . . . . . . . . . . 12

13 Number of low-income units that were vacated but were held available for low-income residents 

as of the end of the calendar year . . . . . . . . . . . . . . . . . . . . . 13

For Privacy Act and Paperwork Reduction Act Notice, see back of form. Cat. No. 64650C Form 8703 (Rev. 12-2021) 
Form 8703 (Rev. 12-2021) Page 2 

Part III Issuer and Description of Bonds (see instructions)

14 Name of issuer

15 Issuer’s EIN

16 Name of bond issue

17 Date of bond issue / / 

18 CUSIP number

19 Issue price

20 Final maturity date / / 

Part IV Certification (see instructions) 

Sign 

Here 

Under penalties of perjury, I certify that the above project (check one) continues to meet ▶ does not meet ▶ the requirements of 

subsection 142(d) of the Internal Revenue Code and that I have examined this form, and to the best of my knowledge and belief, the 

information is true, correct, and complete. ▲

Signature of Project Operator Date 

▲

Type or print name and title 

Paid 

Preparer 

Use Only

Print/Type preparer’s name Preparer’s signature Date Check if 

self-employed

PTIN

Firm’s name ▶

Firm’s address ▶

Firm’s EIN ▶

Phone no.

Form 8703 (Rev. 12-2021) 
Form 8703 (Rev. 12-2021) Page 3 

Future Developments

The IRS has created a page on IRS.gov for 

information about Form 8703 and its 

instructions, at www.irs.gov/form8703. 

Information about any future developments 

affecting Form 8703 (such as legislation 

enacted after we release it) will be posted on 

that page.

General Instructions 

Section references are to the Internal Revenue 

Code unless otherwise noted. 

Purpose of form. Form 8703 is used by an 

operator of a residential rental project to 

provide annual information the IRS will use to 

determine whether a project continues to be a 

qualified residential rental project under 

section 142(d). If so, and certain other 

requirements are met, bonds issued in 

connection with the project are considered 

“exempt facility bonds” and the interest paid 

on them is not taxable to the recipient. 

Who must file. The operator of a residential 

rental project for which an election was made 

under section 142(d) must file Form 8703 

annually. A separate Form 8703 must be filed 

for each project. 

When to file. File Form 8703 by March 31 

after the close of the calendar year for which 

the certification is made. Form 8703 must be 

filed annually during the qualified project 

period. See the instructions for line 2 for the 

definition of “qualified project period.” 

Where to file. File Form 8703 with the:

Internal Revenue Service 

Service Center 

Ogden, UT 84201 

Penalty. Section 6652(j) provides for a penalty 

of $100 for each failure to comply with the 

section 142(d)(7) certification requirements 

unless it can be shown that failure to file is 

due to reasonable cause and not to willful 

neglect. 

Specific Instructions 

Part I—General Information 

Enter the name, address (including ZIP or 

foreign postal code), and taxpayer 

identification number of both the operator and 

the owner of the project. Enter the address of 

the project. Do not use P.O. boxes. 

Amended return. An issuer may file an 

amended return to change or add to the 

information reported on a previously filed 

return for the same date of issue. If you are 

filing to correct errors or change a previously 

filed return, check the “Amended Return” box 

in the heading of the form. 

The amended return must provide all the 

information reported on the original return, in 

addition to the new or corrected information. 

Attach an explanation of the reason for the 

amended return. 

Report number. This line is for IRS use only. 

Do not make an entry. 

Line 1. To be a qualified residential rental 

project, one of the following tests must have 

been elected for the project: 

(a) 20-50 test. 20% or more of the residential 

units must be occupied by individuals whose 

income is 50% or less of the area median 

gross income (AMGI). 

(b) 40-60 test. 40% or more of the residential 

units must be occupied by individuals whose 

income is 60% or less of the AMGI. 

(c) 25-60 test (NYC only). 25% or more of 

the residential units must be occupied by 

individuals whose income is 60% or less of 

the AMGI. 

(d) 20-60 test (Gulf Opportunity (GO) Zone, 

Midwestern disaster areas, and Hurricane 

Ike disaster areas only). 20% or more of the 

residential units must be occupied by 

individuals whose income is 60% or less of 

the AMGI. 

(e) 40-70 test (GO Zone, Midwestern 

disaster areas, and Hurricane Ike disaster 

areas only). 40% or more of the residential 

units must be occupied by individuals whose 

income is 70% or less of the AMGI. 

See Rev. Rul. 94-57, 1994-2 C.B. 5, for 

guidance on computing the income limits 

applicable to these tests. See Pub. 4492, 

Information for Taxpayers Affected by 

Hurricanes Katrina, Rita, and Wilma, for 

details about the GO Zone. See Pub. 4492-B, 

Information for Affected Taxpayers in the 

Midwestern Disaster Areas, for details about 

the Midwestern Disaster areas. 

Line 2. The qualified project period is the 

period beginning on the first day that 10% of 

the residential units are occupied and ending on 

the latest of (a) the date that is 15 years after 

the date that 50% of the residential units are 

occupied, (b) the first day that no tax-exempt 

private activity bond issued for the project is 

outstanding, or (c) the date that any assistance 

provided for the project under section 8 of the 

United States Housing Act of 1937 terminates. 

Lines 3a and 3b. If a low-income housing 

credit allocation was issued for more than one 

building in the project, attach a schedule 

listing the building identification number (BIN) 

for each building. 

Line 4. The determination of whether the 

income of a resident of a unit in a project 

exceeds the applicable income limit shall be 

made at least annually on the basis of the 

current income of the resident, except for 

respect to any project for any year if during 

such year no residential unit in the project is 

occupied by a new resident whose income 

exceeds the applicable income limit. See 

section 142(d)(3)(A). Check "Yes” if there are 

no new residents in the project whose income 

exceeds the applicable income limits. 

Therefore, if “Yes” is checked, complete Part 

II, skipping lines 6 through 10.

Part II—Annual Determinations 

Line 5. Enter the total number of residential 

rental units in the project.

Line 6. Enter the number of residential rental 

units occupied by individuals whose income 

is:

(a) 50% or less of the AMGI (if box 1a was 

checked),

(b) 60% or less of the AMGI (if box 1b, 1c, 

or 1d was checked), or 

(c) 70% or less of the AMGI (if box 1e was 

checked). 

Do not include any units included on line 7. 

Line 7. Enter the number of residential rental 

units occupied by continuing residents whose 

income exceeds the applicable income limit 

but whose income is treated as not exceeding 

the applicable income limit. Do not include 

any units included on line 6. See sections 

142(d)(3)(B) and 142(d)(4)(A). Generally, a 

continuing resident's income may increase 

but not exceed 140% of the applicable 

income limit (i.e., 50% or less or 60% or less 

of the AMGI under the line 1a or 1b test). 

When the deep-rent skewed election is made 

and the requirements of section 142(d)(4)(B) 

are met, the income of a continuing resident 

may increase up to 170% of the applicable 

income limit. 

Line 9. If line 9 is less than the percentage for 

the test elected in item 1, Part I (i.e., 20%, 

40%, or 25%), the project is considered in 

post-issuance noncompliance. In this case, 

check the box in Part IV to certify that the 

project “does not meet” the requirements of 

section 142(d). 

In general, unless the noncompliance is 

corrected within a reasonable period, the 

noncompliance will cause the exempt facility 

bonds for the project to not be qualified 

bonds under section 141. When the bonds 

are no longer qualified, the interest paid or to 

be paid on the bonds is taxable, and the 

issuers or brokers of the bonds must report 

the taxable interest to bond holders as 

required by section 6049. See Regulations 

sections 1.103-8(b)(1)-(9) and sections 141, 

142, and 103 for additional information. 

Lines 10a and 10b. Complete these lines only 

if an election was made to treat the project as 

a deep-rent skewed project under section 

142(d)(4). The 15-40 test that applies to the 

deep-rent skewed project election is not an 

additional test for satisfying the requirements 

of section 142(d)(1). The 15-40 deep-rent 

skewed project test relates to the 

determination of a low-income tenant’s 

income. If this election is made, at least 15% 

of all low-income units in the project must be 

occupied by tenants whose income is 40% or 

less of the AMGI. 

On line 10a, enter the number of 

low-income units occupied by individuals 

whose income is 40% or less of the AMGI. 

Also include the number of units occupied by 

continuing residents whose income is treated 

as not exceeding the applicable income limit. 

If the percentage on line 10b is less than 

15%, the project is not a deep-rent skewed 

project, and a continuing resident’s income 

may not increase above 140% of the 

applicable income limit for purposes of 

section 142(d). 

Line 11. Enter the number of low-income 

units vacated during the calendar year.

Line 12. Enter the number of vacated 

low-income units that were occupied by new 

residents who were low-income residents at 

the time of occupancy. The instructions for 

lines 6 and 7 describe low-income residents.

Line 13. Enter the number of vacant 

low-income units that were held available for 

low-income residents as of the end of the 

calendar year.
Form 8703 (Rev. 12-2021) Page 4 

Note. Lines 11 through 13 ask questions 

about low-income units that were vacated 

during the calendar year. Regulations sections 

1.103-8(b)(5)(i) and (ii) provide, that lowincome units must be rented or available for 

rent on a continuous basis by low-income 

tenants during the longer of: (a) the remaining 

term of the bond, or (b) the qualified project 

period. If lines 12 and 13 do not add up to line 

11, then make a determination as to whether 

the project is in compliance with the 

requirements of section 142(d). If it is 

determined that the project is not in 

compliance, check the box in Part IV to certify 

that the project “does not meet” the 

requirements of section 142(d).

Part III—Issuer and Description of 

Bonds 

If the project for which you are filing Form 

8703 has been financed by more than one 

tax-exempt bond issue, attach a separate 

statement containing the information required 

in Part III, lines 14 through 20, for each bond 

issue. 

Line 14. The issuer’s name is the name of the 

entity issuing the bonds, not the name of the 

entity receiving the benefits of the financing. 

The name of the issuer should be identical to 

the name listed on Form 8038, Part I, line 1, 

filed with respect to the bond issue. 

Line 15. Enter the issue’s employer 

identification number (EIN). The issuer’s EIN 

should be identical to the EIN listed on Form 

8038, Part I, line 2, filed with respect to the 

bond issue. 

Line 16. Enter the name of the bond issue. If 

there is no name of the issue, please provide 

other identification of the issue. The name of 

the bond issue should be identical to the 

name listed on Form 8038, Part I, line 8, filed 

with respect to the bond issue. 

Line 17. Enter the date of the bond issue. 

Enter the date in an MM/DD/YYYY format. 

The date of the bond issue is generally the 

date on which the issuer exchanges the 

bonds for the underwriter’s (or other 

purchaser’s) funds. The issue date should be 

identical to the issue date listed on Form 

8038, Part I, line 7, filed with respect to the 

bond issue. 

Line 18. Enter the CUSIP (Committee on 

Uniform Securities Identification Procedures) 

number of the bond with the latest maturity. If 

the issue does not have a CUSIP number, 

write “None.” The CUSIP number should be 

identical to the CUSIP number listed on Form 

8038, Part I, line 9, filed with respect to the 

bond issue. 

Line 19. Enter the issue price of the bond 

issue listed on Form 8038, Part III, line 21(b), 

filed with respect to the bond issue. 

Line 20. The final maturity date is the last 

date the issuer must redeem the entire issue. 

Enter the date in an MM/DD/YYYY format. 

The final maturity date should be identical to 

the final maturity date listed on Form 8038, 

Part III, line 21(a), filed with respect to the 

bond issue. 

Certification

Section 142(d)(7) requires the operator of the 

project to submit this annual certification as to 

whether the project continues to meet the 

requirements of section 142(d). This form 

must be signed by the operator of the project.

Paid Preparer

If an authorized officer of the operator filled in 

this return, the paid preparer’s space should 

remain blank. Anyone who prepares the return 

but does not charge the organization should 

not sign the return. Certain others who 

prepare the return should not sign the return. 

For example, a regular full-time employee of 

the operator, such as a clerk, secretary, etc., 

should not sign.

Generally, anyone who is paid to prepare a 

return must sign it and fill in the other blanks 

in the Paid Preparer Use Only area of the 

return. The paid preparer must: Sign the 

return in the space provided for the preparer's 

signature, enter the preparer information, and 

give a copy of the return to the operator.

Privacy Act and Paperwork Reduction 

Act Notice 

We ask for the information on this form to 

carry out the Internal Revenue laws of the 

United States. Code section 142(d)(7) requires 

that an annual certification be filed with the 

IRS to determine whether the legal 

requirements of that section are being met. 

Routine uses of the information provided on 

this form include giving it to the Department 

of Justice for civil and criminal litigation and to 

other federal agencies, as provided by law. 

We may disclose the information to cities, 

states, the District of Columbia, and U.S. 

commonwealths or possessions to administer 

their tax laws. We may also disclose the 

information to foreign governments pursuant 

to tax treaties or to federal and state agencies 

to enforce federal nontax criminal laws and to 

combat terrorism. If you do not provide this 

form or all of the information requested on it, 

you may be subject to penalties. 

To ensure proper identification of the owner 

and operator of the project, Code section 

6109 and its regulations require an identifying 

number (social security number (SSN) or 

employer identification number (EIN)) on the 

annual certification. 

You are not required to provide the 

information requested on a form that is 

subject to the Paperwork Reduction Act 

unless the form displays a valid OMB control 

number. Books or records relating to a form 

or its instructions must be retained as long as 

their contents may become material in the 

administration of any Internal Revenue law. 

Generally, return information is confidential, 

as required by Code section 6103. 

The time needed to complete and file this 

form will vary depending on individual 

circumstances. The estimated average time is:

Recordkeeping . . . . 7 hr., 39 min.

Learning about the law 

or the form . . . . . . 1 hr., 51 min.

Preparing and sending the 

form to the IRS . . . . 3 hr., 16 min.

If you have comments concerning the 

accuracy of these time estimates or 

suggestions for making this form simpler, we 

would be happy to hear from you. You can 

send your comments to:

Internal Revenue Service 

Tax Forms and Publications Division 

1111 Constitution Ave. NW, IR-6526 

Washington, DC 20224 

Do not send the form to this address. 

Instead, see Where to file, earlier.