will accept written comments during this thirty-day period and will consider any comments presented at the public hearing, prior to completion of the plan. LOW INCOME HOUSING TAX CREDIT PROGRAM SUMMARY A. The Tax Reform Act of 1986 established the Tax Credit Program to stimulate private sector investment in low income rental housing. In August of 1993, permanency was granted to the Tax Credit Program after numerous temporary annual extensions. There are numerous technical rules governing a for Tax Credits. The Project’s qualification following is a summary of certain key provisions of Section 42 of the Code and regulations, and the Tax Credit Program. Applicants are advised to review Section 42 of the Code directly for further detail, since this overview does not address all of the provisions. Capitalized terms, when not defined in the text of this document, are defined in or in Section 42 of the Code. B. The State of New Mexico, for the calendar year 2015, will receive a population based Tax Credit allocation equal to $2.15 (indexed for inflation) per resident. The population current year’s estimates, as provided by the Internal Revenue Service, and the estimated Annual Credit Ceiling, including any carry-forward, returned or national pool Credits received by the State, may be found on the MFA web site. C. A minimum of 10 percent of the Annual Credit Ceiling must be allocated each year to Projects involving Qualified Nonprofit Organizations. Allocation Set Asides (see ) are intended to MFA’s implement this requirement. However, Qualified Nonprofit Organizations may also apply for Tax Credits in excess of these Set Asides. For the purposes of identifying Applicants eligible for this Allocation Set Aside, several requirements must be met, as described in Code Section 42(h)(5). A Qualified Nonprofit Organization is an organization described in Sections 501(c)(3) or 501(c)(4) of the IRS Code and exempt from tax under Section 501(a). The production of decent, safe and affordable housing must be one of the defined goals, objectives, or purposes of the nonprofit organization. The nonprofit organization must materially participate in the Project, meaning that the organization must be involved on a regular, continuous, and substantial basis in both the development and operation of the Project during the term of the Compliance Period. The nonprofit must also own an interest in the Project throughout the Compliance Period and may not be affiliated with or controlled by a for-profit organization. D.
will accept written comments during this thirty-day period and will consider any comments presented at the public hearing, prior to completion of the plan. LOW INCOME HOUSING TAX CREDIT PROGRAM SUMMARY A. The Tax Reform Act of 1986 established the Tax Credit Program to stimulate private sector investment in low income rental housing. In August of 1993, permanency was granted to the Tax Credit Program after numerous temporary annual extensions. There are numerous technical rules governing a Project’s qualification for Tax Credits. The following is a summary of certain key provisions of Section 42 of the Code and regulations, and the Tax Credit Program. Applicants are advised to review Section 42 of the Code directly for further detail, since this overview does not address all of the provisions. Capitalized terms, when not defined in the text of this document, are defined in or in Section 42 of the Code. B. The State of New Mexico, for the calendar year 2015, will receive a population based Tax Credit allocation equal to $2.15 (indexed for inflation) per resident. The current year’s population estimates, as provided by the Internal Revenue Service, and the estimated Annual Credit Ceiling, including any carry-forward, returned or national pool Credits received by the State, may be found on the MFA web site. C. A minimum of 10 percent of the Annual Credit Ceiling must be allocated each year to Projects involving Qualified Nonprofit Organizations. MFA’s Allocation Set Asides (see ) are intended to implement this requirement. However, Qualified Nonprofit Organizations may also apply for Tax Credits in excess of these Set Asides. For the purposes of identifying Applicants eligible for this Allocation Set Aside, several requirements must be met, as described in Code Section 42(h)(5). A Qualified Nonprofit Organization is an organization described in Sections 501(c)(3) or 501(c)(4) of the IRS Code and exempt from tax under Section 501(a). The production of decent, safe and affordable housing must be one of the defined goals, objectives, or purposes of the nonprofit organization. The nonprofit organization must materially participate in the Project, meaning that the organization must be involved on a regular, continuous, and substantial basis in both the development and operation of the Project during the term of the Compliance Period. The nonprofit must also own an interest in the Project throughout the Compliance Period and may not be affiliated with or controlled by a for-profit organization. D.
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