Low Income Housing Tax Credits (LIHTC)
DOZ provides annual audit services to over 1,000 entities that own multifamily housing communities financed in part with capital contributions received from the sale of LIHTC pursuant to Section 42 of the Internal Revenue Code. We are particularly experienced with the unique accounting and auditing concepts associated with these engagements, including: compliance with entity formation documents (guarantees, cash flow uses, entity fees, etc.), loan or grant documents, initial lease up, development capitalization, and compliance with the provisions of Section 42.
Services
- Annual financial statement audits
- Local / lower tier partnership
- Syndicator / upper tier fund
- Financial statement reviews and compilations
- Tax consulting, preparation and filing
- Tax credit carryover allocations (10% test)
- Final cost certifications
- Agreed-upon procedures
- Debt service coverage ratios
- Initial tenant file reviews
- Qualified contract calculations
- Review LIHTC applications in conformance with respective state’s QAP
- Review forecasts and projections, including financing, equity, eligible basis, etc.
- Evaluation of partnership agreement structuring
- Arbitrage rebate calculations
- Year 15 exit strategy
