New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 80 - NEW JERSEY HOUSING AND MORTGAGE FINANCE AGENCY › Subchapter 33 - LOW INCOME HOUSING TAX CREDIT QUALIFIED ALLOCATION PLAN › Section 5:80-33.26 - Obtaining IRS Form 8609: deadlines and extension fees

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The IRS Form 8609 is
				the form used by owners to claim the low-income housing tax credit. A form is issued
				for each building in the project that contains tax credit units. Prior to issuance
				of the IRS Form 8609, NJHMFA must receive all required information from the owner,
				including the allocation/issuance fee described at
				N.J.A.C.
				5:80-33.25. For projects receiving credits from
				the nonprofit set-aside, this shall include an attorney's opinion letter stating
				that no for-profit developer or member of the investor limited partner held a seat
				on the nonprofit's board of directors. NJHMFA (or its authorized designee) may also
				conduct an on-site inspection of the project to confirm that all representations
				made in the project's tax credit application have been met. Upon completion of the
				NJHMFA evaluation (which includes the placed in service needs analysis) and
				attendance by the project owner or representative at an NJHMFA-sponsored compliance
				monitoring seminar, NJHMFA shall complete Part I of the IRS Form 8609 and forward a
				copy, as filed with the IRS, to the project owner. Owners should be sure to make
				copies of the signed IRS Form 8609, as a copy must be filed each year with Federal
				tax returns.
(b) The entire IRS Form
				8609 request package, including the allocation/issuance fee described at
				5:80-33.25 and the audit report, in a
				form acceptable to NJHMFA, must be submitted to NJHMFA within 90 days after
				permanent loan closing. On a case-by-case basis, NJHMFA may extend its filing
				deadline if the owner can show good cause; however, in order to defray the added
				expense and regulatory burden of processing IRS Form 8609 requests that arrive after
				the deadline, an extension fee of $ 1,000 shall be payable to NJHMFA for each week
				or part thereof that the owner is late in submitting a complete package. NJHMFA
				reserves the right to recapture an allocation if a deadline is unmet.
(c) Failure of a project to fulfill all
				representations made in its application may result in a delay and/or non-issuance of
				the IRS Form 8609. At its sole discretion, NJHMFA may impose penalties for failure
				to comply with eligibility or point requirements, such penalties to include, but not
				be limited to, the imposition of financial penalties, a reduction in the allocated
				credit amount, or the unilateral cancellation of an allocation. Generally, a
				financial penalty or reduction in the amount of credits will be imposed in an amount
				commensurate with the violation. For example, if a project fails to meet the minimum
				expenditures pursuant to
				N.J.A.C.
				5:80-33.15(a)6, credits may be
				reduced by or a financial penalty imposed in the delinquent amount, which amount may
				be affected by remedial measures, if any, taken in order to comply with the
				representation(s). However, NJHMFA reserves the right to unilaterally cancel an
				allocation for severe and/or persistent violations.
(d) IRS Form 8609 shall not be issued to projects
				that have a general partner, voting member, developer, or related party that owns a
				managing or controlling interest in a New Jersey LIHTC project with an uncorrected
				noncompliance until such noncompliance is corrected.