The Pennsylvania Housing Finance Agency (“PHFA”) announced last week that it received 140 “Intent to Submit a Tax Credit Application – Fact Sheet” submissions by the January 8, 2016 deadline. The 2016 funding round looks to be one of the most competitive to date with those 140 applications competing for just over $29.4 million in tax credits to be allocated in Pennsylvania. PHFA also announced that due to the high demand for low-income housing tax credits, developments receiving awards of 2016 tax credits will be required to meet a closing and commencement of construction date of March 31, 2017.

On December 18, 2015, President Obama signed into law the “Protecting Americans from Tax Hikes (PATH) Act of 2015”. This act extends numerous tax provisions that had previously expired. Both houses of Congress passed the bill earlier that same week.

The PATH Act makes the minimum 9% tax credit rate for new LIHTC developments and rehabilitation expenditures permanent. This provision is retroactive to January 1, 2015.

It’s time to prepare for audits and tax returns for calendar year-end entities. Read on for some tips to help owners and managers of low-income housing tax credit partnerships help ensure reporting deadlines are met and to minimize the disruption by auditors and tax preparers to your day to day operations.