Idaho Administrative Code › Title IDAPA 35 - Tax Commission, State › Rule 35.01.03 - PROPERTY TAX ADMINISTRATIVE RULES › Section 35.01.03.220 - RULES PERTAINING TO ASSESSMENT OF INTERNAL REVENUE CODE (IRC) SECTION 42 LOW-INCOME PROPERTIES

Current through August 31, 2023
Section
				63 - 205A, Idaho Code
01.
Definitions
. The following
			 definitions apply to the appraisal of IRC section
			 42 low-income properties as used in
			 Section 63-205A, Idaho Code, and in this
			 rule. (3-31-22)
a. Amount of Housing Tax
			 Credits. The "Amount of Housing Tax Credits" is the Housing Tax Credits divided
			 by the number of years of the term of the Tax Credit Regulatory Agreement.
			 (3-31-22)
b. Asset Management Fee.
			 "Asset Management Fee" is an annual fee paid to the limited partner for
			 property management oversight, tax credit compliance monitoring, and related
			 services. (3-31-22)
c. Audit Fee.
			 "Audit Fee" is the fees and costs that may be charged by accountants for
			 preparation and review of financial statements on behalf of the owner or
			 investor. (3-31-22)
d. Compliance
			 Fee. "Compliance Fee" is the fees and costs, if any, that may be charged by the
			 Idaho Housing Financing Association (IHFA), or its agent, for review and
			 inspection of the owner's records, or the physical inspection of the project,
			 as are required by the Regulatory Agreement or federal law. (3-31-22)
e. Existing Section
			 42 Project. An "Existing Section
			 42 Project" is a Section
			 42 low-income project for which
			 Housing Tax Credits were entirely distributed before January 1, 2009.
			 (3-31-22)
f. Federal Project Based
			 Assistance. "Federal Project Based Assistance" means: (3-31-22)
i. Rental assistance of any kind provided by
			 the Department of Housing and Urban Development or other agencies of the United
			 States federal government which allow for rental assistance payments to the
			 owner on behalf of the project and not on behalf of any individual tenant; or
			 (3-31-22)
ii. Apartment projects
			 that have federal financing at below market terms at the time when the
			 financing was put in place, which financing is transferable without change in
			 terms and conditions to subsequent transferees; or (3-31-22)
iii. Apartment projects that receive
			 financing from the federal Hope VI programs administered under
			 42 USC section
			 1437v. (3-31-22)
g. Financial Statements. "Financial
			 Statements" are profit and loss statements, or equivalent reports, that include
			 a detailed schedule showing income and expense line items, the project's rent
			 roll showing the rent charged for each unit, and a copy of the IHFA's Annual
			 Occupancy Report that is submitted annually by each project's owner or agent to
			 the IHFA. (3-31-22)
h. General
			 Partner Fee. "General Partner Fee" is the portion of cash flow that is paid to
			 the general partner to compensate the general partner for managing the
			 partnership's operating assets and coordinating the preparation of the required
			 IHFA's, federal, state, and local tax and other required filings and financial
			 reports. (3-31-22)
i. Housing Tax
			 Credits. The "Housing Tax Credits" are the final total federal income tax
			 credits as shown on the first year's form 8609 and allocated by the IHFA to the
			 project either in an original allocation or a new allocation and reported to
			 the Tax Commission by the IHFA. (3-31-22)
j. Tax Credit Regulatory Agreement. The "Tax
			 Credit Regulatory Agreement" means the original agreement, or the extended
			 agreement, between the section
			 42 project owner and the IHFA.
			 (3-31-22)