STEPS TO GETTING AN AFFORDABLE TAX CREDIT APARTMENT
1. Study. Have a good understanding that tax credit means that the owner gets a tax credit for renting you an apartment at affordable market rates and based on your income. Some of these properties will be owned by private businesses and some by HUD or your local housing authority. I believe all tax credit properties must be open to the public. Go online at home or the library and read HUD compliance manual 4350 and any other sites that talk about low income affordable housing tax credit properties in your state. The HUD manual will give you a good idea of what is expected when you apply. Unlike regular properties that do a rental, credit, and employer check, tax credit properties do an extensive background check (as if you were applying for a government job). If your income looks good, remember that the property will also view your assets which include savings and bank accounts. Study the $5,000 assets sections and whether you are under the $5,000 or over and how this is calculated. See your local housing authorities website which will have a listing of “affordable” by zip code; the list will show whether they are multifamily, senior citizen etc. and what the maximum income is.
2. As with all apartments, see the building in person. Properties are going up so fast that if you ride around you are bound to see two or three. This is the best time to get on the waiting list because some brand new properties will have drawings to see who gets to apply.
3. If you see a phone number or posting, call them up and request an application. Be prepared to encounter long waiting times of 3-6 months.
Yahoo Answers is a good site to put in “tax credit apartments” and get an idea of others’ experiences.
If you have studied as we have suggested, and you have been sent an application in the mail, now you are ready to fill out the application. We will cover that in our next blog.