Overview of the Programs
The HOME Program and LIHTC originate with different legislative histories and program purposes. As such, each program has relative strengths and limitations in addressing a variety of local housing conditions or needs.
The HOME Program was created in 1990 by the Cranston-Gonzalez National Affordable Housing Act. Each year, Congress allocates approximately $2 billion by formula among the states and hundreds of localities nationwide. HOME is the largest Federal block grant designed exclusively to create affordable housing for low-income households in the nation. Among other things, HOME funds may be used by PJs to provide incentives to develop rental housing through acquisition, new construction, reconstruction, or rehabilitation of non-luxury housing.
Congress created the Low-Income Housing Tax Credit in 1986 as Section 42 of the Internal Revenue Code (IRC or “the Code”) to develop a financial incentive to generate private capital for the development of affordable rental housing. LIHTCs are administered by the Internal Revenue Service (IRS) because they are tax credits, not direct funding, for affordable rental housing development. Congress gives the states authority to allocate a certain number of tax credits to eligible affordable housing ventures annually. Therefore, while Section 42 of the IRC regulates certain aspects of the LIHTC, each state also establishes certain priorities, policies, and procedures for the allocation of its housing tax credits.
LIHTC is not the only Federal tax credit that can be used for affordable housing. The IRS also offers tax credits for historic preservation (tax benefits to the project owner for maintaining the historic character of a building) and energy (tax benefits to the project owner for making energy- saving investments). In addition, several states offer their own low-income housing tax credits and/or historic preservation tax credits, which serve as a credit against the investor’s state income tax liabilities. This guidebook provides guidance only on the use of the Low-Income Housing Tax Credit based on Section 42 of the IRC. It does not provide guidance on how to use these other tax credit programs with HOME.
Consulting Services We Provide
- Review public works preconstruction contracts
- Monitor DIR contractor/subcontractor certified payrolls
- Audit labor classification for each worker employed
- Review DIR pre-DAS 140/142 submissions
- Review CAC training fund contributions form CAC-2
- Review DIR Fringe Benefits Statement PW-26
- Monitor DIR wage determinations
- Audit fringe benefits allowances
- Review DIR holiday payment requirements
- Audit DIR travel & subsistence requirements
- Caltrans Labor Compliance
- County of Sacramento Labor Compliance
- City of Los Angeles Labor Compliance
- Los Angeles Unified School District Labor Compliance
- Federal Davis-Bacon Project Monitoring
- Federal DBE Implementation & Review
- Federal FAA AIP Goal Setting
- DIR & Davis-Bacon Training
- DIR Civil Wage Penalty Review
- Local-Hire Review (e.g., San Francisco)
- Skilled and Trained Workforce
Give us a call to discuss your labor compliance requirements.
This email is intended for general information purposes only and should not be construed as legal advice
or legal opinions on any specific facts or circumstances.