The law firm of Pillsbury Winthrop provides guidance relating to low income occupancy compliance for multifamily developments.
"On July 1, 2004, the Internal Revenue Service issued Revenue Procedure 2004-39 setting forth procedures for determining whether a bond financed residential rental project is in compliance with the set-aside requirements contained in Section 142(d) of the Internal Revenue Code in the context of an acquisition/rehabilitation transaction or a new construction project... The set-aside requirements often raise a compliance dilemma for developers, especially during rehabilitation of a project. For example, must a developer rent all available units in a project until the 20% or 40% set-asides, as applicable, are met in relation to the total units constructed? Or, alternatively, is it only necessary that 20% or 40% of the leased units, as applicable, at any given time actually be occupied by low income individuals?"
Thanks to Chris Steins
FULL STORY: Multifamily Low Income Occupancy Compliance

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