What is one consequence of not complying with the General Public Use requirement?

The consequence of not complying with the General Public Use requirement is the loss of tax credit eligibility. This requirement is critical in ensuring that developments financed through tax credits serve the intended purpose of providing affordable housing to the general public. If a property fails to comply with this requirement, it would no longer meet the criteria set by the tax credit program, which could lead to the forfeiture of the tax credits that benefit the property owners and developers.

Maintaining compliance with General Public Use is essential for securing ongoing tax credit benefits, which are designed to support affordable housing initiatives. Non-compliance can trigger serious repercussions, including the loss of financial incentives and a potential obligation to return previously claimed credits. This aspect emphasizes the importance of adhering to program rules and guidelines to sustain the financial viability of affordable housing projects.