What must a new owner of a LIHTC project do if the project is sold during the compliance period?

The new owner of a Low-Income Housing Tax Credit (LIHTC) project must continue to comply with LIHTC regulations if the project is sold during the compliance period. This is crucial because the LIHTC program has specific requirements that must be maintained throughout the compliance period, which typically lasts for 15 years. These regulations include maintaining certain income restrictions for residents, adhering to rent limits, and ensuring that a required number of units are reserved for low-income tenants.

When ownership changes, the new owner inherits the obligations of the previous owner, thereby ensuring that the benefits of the LIHTC program continue to support affordable housing for low-income individuals and families. This is vital for the integrity of the program and for the residents relying on affordable housing options.

The other options do not align with the requirements set by the LIHTC program. For instance, increasing rental prices to market rate would violate the fundamental principles of the LIHTC, which aim to keep rents affordable for low-income tenants. Applying for additional tax credits is not necessary simply because of a change in ownership; tax credits are allocated based on the project meeting initial requirements and not continued ownership. Finally, selling the property within a year is not a requirement under the LIHTC