How does a for profit developer get it and what does it mean?
What is low income housing tax credit?
Tax credit housing or Section 42 housing gives the property owners a tax credit in exchange for having income guidelines on their properties. This is good and bad for the owners, it is a lot harder for them to fill up their communities. This leaves them with less income due to higher vacancies.
Some developers are finding that it seems like a good idea, because of the tax credit you get...but in the end they could have made more money than what they got from the tax credit if they go with a conventional property.
Tax credit is a hard thing to learn, and to make sure you are following all of the guidelines. It becomes a nightmare for the leasing agents and tenants. Good luck!
floral
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