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Must LIHTC rents be adjusted for tenant paid utilities?

April 26, 2017Adjusted lihtc paid rents tenant utilities

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Must LIHTC rents be adjusted for tenant paid utilities?

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Yes. According to Section 42 of the Internal Revenue Code, LIHTC total gross rent includes the cost of utilities, except for cable and telephone, and must be reduced according to the applicable utility allowance. This policy does NOT apply to owner paid utilities.