Rules & Regulations of the State of Tennessee
Title 0600 - Board of Equalization
Chapter 0600-10 - Subsidized Affordable Housing
Section 0600-10-.03 - DETERMINING VALUE FOR LIHTC PROPERTY

Universal Citation: TN Comp Rules and Regs 0600-10-.03

Current through April 3, 2024

(1) The taxable value of LIHTC property shall consist of a restricted use component and a component representing the economic benefit of the subsidy to the property owners.

(2) The restricted use component shall be the income approach value resulting from using actual rents paid or payable by needy tenants and by such factors for vacancy, collection loss, expenses, reserves, and capitalization rates as are typically experienced by comparable properties in the area in which the property is located or economically comparable areas.

(3) With regard to the value of the subsidy component, a taxpayer of low-income housing tax credit property shall elect to either:

(a) Have the assessor include in the assessor's annual appraisal the present value of all future tax credits for each of the unused tax credit years remaining on the property; or

(b) Have the assessor include in the assessor's annual appraisal, instead of the present value of all future tax credits, the average annual present value of the credit as calculated in (3)(a) above, based on the Compliance Period provided for in the Land Use Restriction Agreement for the particular property being valued.

Authority: T.C.A. §§ 4-3-5103 and 67-1-305.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.