Tax Credits for Low Income Housing:
Opportunities for Developers, Non-Profits, Agencies and Communities Under Permanent Tax Act Provisions, 10^th Edition

Joseph Guggenheim
Simon Publications
P.O. Box 229
Glen Echo, MD 20812
301-320-5771
1998. 400 PP. $72.00.

Please note that the price for the book is now higher. It is available either through the publisher or from amazon.com.

   Since its inception as part of the Tax Reform Act of 1986, the Low-Income Housing Tax Credit ("LIHTC") program has evolved into what may be the most successful housing program in the United States, accounting for the development of over 600,000 housing units over 12 years. It is, however, a complex program that demands professional guidance when developers seek to apply tax credits to a proposed project.

   To provide that needed guidance, Guggenheim first wrote Tax Credits for Low Income Housing in 1986. Now in its tenth edition, the book documents in simple language how tax credits are produced, how developers can maximize credits, and how the LIHTC can be best used in conjunction with other government and not-for-profit aid. While the book covers the basics of the LIHTC, it assumes a basic understanding of tax credits on the part of the reader. Accordingly, it will be most useful for a reader who has a project in mind, possesses a general understanding of tax credit programs, and wants to maximize the benefits of the LIHTC. For an overview of the LIHTC, see "The Low-Income Housing Tax Credit," Urban Land, November 1997.

   While much of the book consists of interpretation of the tax code and administrative rulings, Guggenheim also addresses how equity is raised for LIHTC projects. For example, to raise project equity, a cash poor non-profit with no tax liability could sell the tax credits from a LIHTC project to a cash-rich for-profit company with a sizable tax liability. Guggenheim explains how the exchange can be facilitated through the use of a syndicator who acts as a third party to bring together the tax credit provider and the equity provider. He describes how a syndication is established, how the benefits can be timed and distributed to the different parties, and how a typical partnership agreement looks. He also provides a list of syndicators and corporations that provide equity to a tax credit provider. This list is only a small example of the range of information provided by Guggenheim's book. The appendix includes information such as income and rent levels for every area of the country, relevant IRS and HUD notices, and copies of all required tax forms.

   The book, however, does not provide case studies of specific low income projects. Rather, it is a guide to the mechanics of the LIHTC; it is up to the reader to know what makes a low-income housing project feasible.