Do Private Developers and Investors Make Excessive Profits from the Housing Credit?
No. Other deductions and credits can be claimed without any advance approval. Their abuse can be discovered only in random audits. However, the Housing Credit is one of the most closely regulated of all tax code provisions. A developer receives Housing Credits only after intense state scrutiny of the development and its costs. An investor can claim Housing Credits only as long as the state finds the apartments in good condition and low-income use.
