What is Section 42 of the Internal Revenue Code?

What is Section 42 of the Internal Revenue Code?

Section 42(a) provides for a credit for investment in certain low-income housing buildings. The amount of the low-income housing credit for any taxable year in the credit period is an amount equal to the applicable percentage of the qualified basis of each qualified low-income building (as defined in § 42(c)(2)).

What is considered low income in DC?

About Our Measure of Low Income: This analysis defines low-income DC residents as those who live in families with incomes below 150 percent of the poverty threshold. As measured by the U.S. Census Bureau in 2006-2007, this equaled roughly $24,457 for a family of three and $15,956 for a single, non-elderly resident.

Why is Section 8 so bad?

The vouchers allow tenants to pay only 30% of their income toward rent, with federal assistance to pay the rest. Housing authority experts attribute the trouble in securing housing to multiple factors: rising housing costs, poor credit scores and renting histories, and landlords who refuse to accept Section 8 vouchers.

What do you need to know about Section 42?

In exchange, they receive a federal tax credit. Properties financed under Section 42 are required to house a percentage of residents earning less than 60 percent of the area’s median income, capping qualified participants’ rent at a fixed amount.

What does section 42 of the Affordable Housing Act mean?

Unlike Section 8, Section 42 is not a government-subsidized program, but instead is known as a “housing tax credit program” that benefits builders and real estate developers who agree to devote space in their communities to affordable housing.

Can a student rent a section 42 unit?

Student status may also affect Section 42 eligibility, prohibiting some households composed entirely of full-time students from renting Section 42 units. Section 42 eligibility doesn’t end with the initial application – each year, you must re-certify your income and household size to verify your ongoing eligibility.

How do I apply for a section 42 apartment?

However, to actually apply for a Section 42 apartment, you’ll need to visit the leasing agent at the Section 42-eligible apartment in question. The Section 42 application typically works like a standard rental application, but takes a wide and thorough variety of income factors into account, including:

In exchange, they receive a federal tax credit. Properties financed under Section 42 are required to house a percentage of residents earning less than 60 percent of the area’s median income, capping qualified participants’ rent at a fixed amount.

What’s the purpose of Title 18, Section 242?

Section 242 of Title 18 makes it a crime for a person acting under color of any law to willfully deprive a person of a right or privilege protected by the Constitution or laws of the United States. For the purpose of Section 242, acts under “color of law” include acts not only done by federal, state, or local officials within…

Unlike Section 8, Section 42 is not a government-subsidized program, but instead is known as a “housing tax credit program” that benefits builders and real estate developers who agree to devote space in their communities to affordable housing.