Chelsea RomanoParticipant05/19/2022 at 9:05 AMPost count: 8
I have the pleasure of assessing one of the first properties of this kind in EG (Qualifying low-income housing through RIGL 44-5-13.11). I received their rent roll and I’m not quite sure what LUC/State Code to classify the parcel under. It’s a huge project and a few of the buildings are still under construction. Two of the qualifying units are now complete and have COs including a clubhouse.
Should I be receiving any formal documentation from these folks? I noticed an email chain about something similar but that project had a letter from Dept of HUD; I was told that pertained to elderly housing and not this type of project.
The only documentation I have received from this party is the rent roll showing contract rent for each unit and a Declaration of Land Use Restrictive Covenants which shows that the development would support a credit for $1,240,000.
I know that the tax on the property can be no more than 8% of the previous year’s gross scheduled rental income, but besides that I’m a bit unsure of how to handle the classification and what documentation I should be requesting. Any insight would be wonderful!
Salvatore SaccoccioParticipant05/20/2022 at 10:59 AMPost count: 18
- This topic was modified 4 months, 1 week ago by Chelsea Romano.
LUC, what ever it is i use the existing luc’s. if an apartment greater than 6 it is 03 …
i also use december 31, assessment date for determination of completion.
they should have a covenant with RIHMFC that is recorded.
more than likely they are dealing with HUD. they deal with this regardless of age(disability)
there should be some HUD documents
be careful with contract rent, it is market rent. contract rent plus Subsidization .
some documents show 3 lines, contract, subsidy and totalDeb GarneauParticipant06/02/2022 at 3:26 PMPost count: 12
You should have a contact agency who is monitoring the rents. I have 8 different apartment buildings, one duplex. I usually have to send them reminders to file their rent rolls. I use whatever classification they normally would be and then I adjust the value with an override to get the max 8% tax. It is the only way I can do it with Munis. If you have Vision Admin, you can apply an exemption which is the difference in actual tax vs. the 8% max tax.
We also have quite a few “affordable” single family dwellings in new subdivisions. Vision created a new code in my construction details as “Affordable” since these have a maximum value.
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