Initial certifications for new construction, acquisition rehabs and conventional properties adding a layer of credits are vitally important when you’re looking to cash in on low income housing tax credits. They’re also very complex. You need an understanding of nuanced government regulations and compliance processes or you can lose the credits – a big price to pay for lack of oversight. Big financial benefits in the balance “It’s all about the money,” says Celeste Slater, RealPage Vice President of Compliance Services (formerly Windsor Compliance). “We are talking about millions of dollars in tax credits. That scares a lot of people. It prevents some affordable housing operators from even getting into this arena. Of course, that exposure can be mitigated. It’s about making sure all the certifications are done correctly because the first year files are the most critical.” Slater oversees a team of over 100 compliance and reporting partners at RealPage Compliance Services, which provides compliance monitoring services for all types of affordable properties, including Low Income Housing Tax Credit properties (Section 42), tax exempt bond, Section 8, HOME, HUD and Rural Development properties. Why first-year certifications are so critical There are a couple of main reasons you can’t afford to overlook those first-year certifications. Most importantly, the owner and investor group need to ensure that each building and project meets the minimum set aside on or before the IRS deadline. Not doing so eliminates their ability to claim the credits, for which the investor has already spent millions of dollars. The investors are going to want that money back. But it’s also critical to understand that the IRS wants the owner to maintain the initial files for six years after the compliance period. That’s a long time. It's important that they are correct, that the finals are taken care of and that...

Initial certifications for new construction, acquisition rehabs and conventional properties adding a layer of credits are vitally important when you’re looking to cash in on low income housing tax credits. They’re also very complex. You need an understanding of nuanced government regulations and compliance processes or you can lose the credits – a big price to pay for lack of oversight. Big financial benefits in the balance “It’s all about the money,” says Celeste Slater, RealPage Vice President of Compliance Services (formerly Windsor Compliance). “We are talking about millions of dollars in tax credits. That scares a lot of people. It prevents some affordable housing operators from even getting into this arena. Of course, that exposure can be mitigated. It’s about making sure all the certifications are done correctly because the first year files are the most critical.” Slater oversees a team of over 100 compliance and reporting partners at RealPage Compliance Services, which provides compliance monitoring services for all types of affordable properties, including Low Income Housing Tax Credit properties (Section 42), tax exempt bond, Section 8, HOME, HUD and Rural Development properties. Why first-year certifications are so critical There are a couple of main reasons you can’t afford to overlook those first-year certifications. Most importantly, the owner and investor group need to ensure that each building and project meets the minimum set aside on or before the IRS deadline. Not doing so eliminates their ability to claim the credits, for which the investor has already spent millions of dollars. The investors are going to want that money back. But it’s also critical to understand that the IRS wants the owner to maintain the initial files for six years after the compliance period. That’s a long time. It's important that they are correct, that the finals are taken care of and that...