Section 42 Lease

Section 42 tax credit lease addendum ppmg 65 rev.

Section 42 lease. It provides tax credits for investors who build affordable housing. Federal rental assistance programs help about 5 million households with low comes to affordably rent modest housing. The amount of rent that is payable by a low income housing tax credit section 42 lihtc tenant is referred to as net rent the maximum net rent that is allowed under the tax credit program is derived from a gross rent amount.

Section 42 falls under subsidized apartments which simply means decent housing can be made affordable to those who fall in a certain income range. When your section 42 notice has been dismissed in court it means that your request for lease extension has been brought to a halt. It establishes a method for determining the income eligibility.

Section 42 notice is a significant document when it comes to lease extensions. Properties financed under section 42 are required to house a percentage of residents earning less than 60 percent of the area s median income capping qualified participants rent at a fixed amount. Therefore it is necessary to first calculate the gross rent prior to determining the net rent.

Any fault found on it therefore can be a basis for its dismissal in a court of law.