Section 42 existing property purchase

[Michael Trueba]

All- my partner and I are looking at a 25 unit apartment building that has exited the 15 year LIHTC compliance period, still required to report and audit until 2033. Property appears to be in food shape and have a good return. An advise on buying a property at the stage on the LIHTC cycle would be greatly appreciated!

[Kyle Jean]

If you Google "WHAT HAPPENS TO LOW INCOME HOUSING TAX CREDIT PROPERTIES AT YEAR 15 AND BEYOND?" you'll find an excellent white paper on HUD's website which details typical assumption or purchase scenarios once a tax credit project enters the extended use period.