Low-Income Multifamily Residential Rental Property

Low-income multifamily residential rental property" means multifamily residential property to which all the following apply:

  1. The owner received an allocation of federal income tax credits through the low-income housing tax credit program.
  2. The property remains both income and rent restricted consistent with the low-income housing tax credit program and the provisions of the declaration of affirmative land use restrictive covenants agreement recorded on the property. The requirement of this subdivision is met if an affirmative land use restrictive covenants agreement is not yet recorded on the property but the property is otherwise subject to both income and rent restrictions under the low-income housing tax credit program.
  3. A federal, state, or tribal court has not entered a judgment or order based on a finding that an act or omission of an owner or operator of the property constitutes a breach or violation of either:
    1. The declaration of affirmative land use restrictive covenants agreement recorded on the property.
    2. Restrictions under the low-income housing tax credit program imposed on the property but not contained within an affirmative land use restrictive covenants agreement.
    3. The restrictions apply to all units on the property except employee units.

The owner of a multifamily residential rental property that is part of the federal LIHTC program may elect to receive a statutory income valuation using the owner’s audited actual income and expenses as reported to the Arizona Department of Housing.

Owners must make this election each year by submitting Department of Revenue (DOR) Form 82603 and all required documentation to the Assessor’s Office before September 1 of the year preceding the valuation year.

More information

Statutes: ARS §42-13601, ARS §42-13602, ARS §42-13603, ARS §42-13604, ARS §42-13605

Forms

HTML File icon Request For Election to Use the Income Method Of Valuation For LIHTC Properties