Low Income Housing Tax Credit Communities - Beware

Before you rent an apartment in an LIHTC community (Low Income Housing Tax Credit) get all the facts. These communities are usually solely purchased by very wealthy people looking to get tax credit relief. They do not put any income into the property's upkeep. They are very poorly staffed. Usually these communities only have one property manager and possibly a part time assistant and one maintenance tech.  Your rent pays for luxurious parties, extravagant vacations and designer homes. Their homes are never in poor neighborhoods which is likely where the community is or was built. If you don't know much about your community. Or if you are interested in finding out more about a community before you sign a lease, email me. I can help make this process much easier for you.

The Low Income Housing Tax Credit (LIHTC - often pronounced "lie-tech", Housing Credit) is a dollar-for-dollar tax credit in the United States for affordable housing investments. It was created under the Tax Reform Act of 1986 (TRA86) that gives incentives for the utilization of private equity in the development of affordable housing aimed at low-income Americans. LIHTC accounts for the majority - approximately 90 percent - of all affordable rental housing created in the United States today. The credits are also commonly called Section 42 credits in reference to the applicable section of the Internal Revenue Code. The tax credits are more attractive than tax deductions as they provide a dollar-for-dollar reduction in a taxpayer's federal income tax, whereas a tax deduction only provides a reduction in taxable income. The "passive loss rules" and similar tax changes made by TRA86 greatly reduced the value of tax credits and deductions to individual taxpayers. As a result, almost all investors in LIHTC projects are corporations.

Before you renew your lease! Take the time to make a few special requests. Get new carpeting! And, don't allow them to increase your rent. Now is not the time for rent increases. A friend of mine moved from Philadelphia to GA. His rent was outrageous in Philly. The management office charged him the same rates in GA as in PA. That's ridiculous! He was paying $1400 for a 3 bedroom apartment in GA. Don't be fooled. I went to his neighborhood and talked with the neighbors. Some were paying as little as $900 for the same 3 bedroom! He didn't do his homework. Make sure you do yours!

How many managers have worked at the apartment community you're interested in???

When you're shopping for a new apartment home, it's important to know how many managers that property has had. If she's been there a year, then it's very likely they've changed managers at least 3 times in two years. Beware. As well, I'd ask the residents. You are welcome to go without the knowledge of the office to knock on doors and ask residents how they really feel about living on that community. I'd ask at least one or two from each building. You'd be surprised. Also make sure it's not families living in what was formerly a model unit. Because the model units are always taken care of much better than the regular units.

Do you have a Section 8 package? Do you have questions before renting a house?

You have rights and more control than homeowners want to give you credit. If they rent their home to you, they are obligated by law to make all needed safety improvements and all repairs that occur through normal wear and tear. Be aware also that if something was already damaged and you caused it further damage they are responsible for repairing it. Because it should have been repaired previously. Each state has housing laws. Read them. And if you ever find yourself in court, get a lawyer. But don't let that lawyer sell you swamp land. Make him/her do their job!

Are you thinking about renting a house?

Before you rent a house, talk with the neighbors in that community. Find out how many times the house has been rented out this year. Find out about the owner. If they've paid their home owner dues. Find out if they have liens on the house from the Home Owners Association. Go to the courthouse and find out if the house is being Foreclosed. You have more power than you think.

The property management industry is a community. They are very tightknit.

You must know who and what you're getting yourself into. The property management industry is a collection of people who all know eachother. The laws, especially in Cobb County, favor them. They hire their friends and people they know whom will carry out their ways even when it's wrong. Lots of people don't know that these apartment communities have personal stories in apartmentratings.com. Families go on this site and tell their experience about a particular apartment community. I would implore anyone that really wants to know more about an apartment community to visit this site.