IDAPA 35.01.03.220 — RULES PERTAINING TO ASSESSMENT OF INTERNAL REVENUE CODE (IRC) SECTION 42

LOW-INCOME PROPERTIES.
Section 63- 205A, Idaho Code
01.
Definitions.
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a.
Amount of Housing Tax Credits. The Housing Tax Credits divided by the number of years of the
term of the Tax Credit Regulatory Agreement.
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b.
Asset Management Fee.An annual fee paid to the limited partner for property management
oversight, tax credit compliance monitoring, and related services.
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c.
Audit Fee. The fees and costs that may be charged by accountants for preparation and review of
financial statements on behalf of the owner or investor.
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d.
Compliance Fee. The fees and costs, if any, that may be charged by the Idaho Housing Financing
Association (IHFA), or its agent, for review and inspection of the owner's records, or the physical inspection of the
project, as are required by the Regulatory Agreement or federal law.
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e.
Existing Section 42 Project. A Section 42 low-income project for which Housing Tax Credits were
entirely distributed before January 1, 2009.
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f.
Federal Project Based Assistance means:
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i.
Rental assistance of any kind provided by the Department of Housing and Urban Development or
other agencies of the United States federal government which allow for rental assistance payments to the owner on
behalf of the project and not on behalf of any individual tenant; or
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ii.
Apartment projects that have federal financing at below market terms at the time when the
financing was put in place, which financing is transferable without change in terms and conditions to subsequent
transferees; or
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iii.
Apartment projects that receive financing from the federal Hope VI programs administered under
42 USC section 1437v.
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g.
Financial Statements. Profit and loss statements, or equivalent reports, that include a detailed
schedule showing income and expense line items, the project's rent roll showing the rent charged for each unit, and a
copy of the IHFA's Annual Occupancy Report that is submitted annually by each project's owner or agent to the
IHFA.
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h.
General Partner Fee. The portion of cash flow that is paid to the general partner to compensate the
general partner for managing the partnership's operating assets and coordinating the preparation of the required
IHFA's, federal, state, and local tax and other required filings and financial reports.
(7-1-24)
i.
Housing Tax Credits. The final total federal income tax credits as shown on the first year's form
8609 and allocated by the IHFA to the project either in an original allocation or a new allocation and reported to the
Tax Commission by the IHFA.
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j.
Tax Credit Regulatory Agreement. The original agreement, or the extended agreement, between the
section 42 project owner and the IHFA.
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IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.03
State Tax Commission
Property Tax Administrative Rules
Section 225
Page 19
02.
Financial Statements to be Provided by the Owners. The Tax Commission will forward to the
assessor all financial statements received from the owners of section 42 properties and the information received from
IHFA by April 15 as described in Section 63-205A, Idaho Code.
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03.
Cross Reference. See Brandon Bay, Ltd. Partnership v. Payette County, 142 Idaho 681, 132 P.3d
438 (2006).
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