N.J. Admin. Code § 5:80-33.26 - Obtaining IRS Form 8609: deadlines and extension fees

(a) The IRS Form 8609 is the form used by owners to claim the low-income housing tax credit. A form is issued for each building in the project that contains tax credit units. Prior to issuance of the IRS Form 8609, NJHMFA must receive all required information from the owner, including the allocation/issuance fee described at N.J.A.C. 5:80-33.25. For projects receiving credits from the nonprofit set-aside, this shall include an attorney's opinion letter stating that no for-profit developer or member of the investor limited partner held a seat on the nonprofit's board of directors. NJHMFA (or its authorized designee) may also conduct an on-site inspection of the project to confirm that all representations made in the project's tax credit application have been met. Upon completion of the NJHMFA evaluation (which includes the placed in service needs analysis) and attendance by the project owner or representative at an NJHMFA-sponsored compliance monitoring seminar, NJHMFA shall complete Part I of the IRS Form 8609 and forward a copy, as filed with the IRS, to the project owner. Owners should be sure to make copies of the signed IRS Form 8609, as a copy must be filed each year with Federal tax returns.

(b) The entire IRS Form 8609 request package, including the allocation/issuance fee described at 5:80-33.25 and the audit report, in a form acceptable to NJHMFA, must be submitted to NJHMFA within 90 days after permanent loan closing. On a case-by-case basis, NJHMFA may extend its filing deadline if the owner can show good cause; however, in order to defray the added expense and regulatory burden of processing IRS Form 8609 requests that arrive after the deadline, an extension fee of $ 1,000 shall be payable to NJHMFA for each week or part thereof that the owner is late in submitting a complete package. NJHMFA reserves the right to recapture an allocation if a deadline is unmet.

(c) Failure of a project to fulfill all representations made in its application may result in a delay and/or non-issuance of the IRS Form 8609. At its sole discretion, NJHMFA may impose penalties for failure to comply with eligibility or point requirements, such penalties to include, but not be limited to, the imposition of financial penalties, a reduction in the allocated credit amount, or the unilateral cancellation of an allocation. Generally, a financial penalty or reduction in the amount of credits will be imposed in an amount commensurate with the violation. For example, if a project fails to meet the minimum expenditures pursuant to N.J.A.C. 5:80-33.15(a)6, credits may be reduced by or a financial penalty imposed in the delinquent amount, which amount may be affected by remedial measures, if any, taken in order to comply with the representation(s). However, NJHMFA reserves the right to unilaterally cancel an allocation for severe and/or persistent violations.

(d) IRS Form 8609 shall not be issued to projects that have a general partner, voting member, developer, or related party that owns a managing or controlling interest in a New Jersey LIHTC project with an uncorrected noncompliance until such noncompliance is corrected.

Notes

N.J. Admin. Code § 5:80-33.26

Amended by R.1997 d.284, effective 7/7/1997.
See: 29 N.J.R. 1441(a), 29 N.J.R. 2818(a).
In third sentence, substituted reference to required information for reference to specified required items and in the fourth sentence substituted reference to completed NJHMFA evaluation and placed in service needs analysis for reference to completed items and any other requested information.
Recodified from N.J.A.C. 5:80-33.24 by R.1998 d.279, effective 6/1/1998.
See: 30 N.J.R. 1132(a), 30 N.J.R. 1978(a).
Former N.J.A.C. 5:80-33.29, Returning credits, was recodified to N.J.A.C. 5:80-33.34.
Recodified from N.J.A.C. 5:80-33.29 and amended by R.1999 d.120, effective 4/5/1999.
See: 31 N.J.R. 122(a), 31 N.J.R. 860(a).
Inserted a new third sentence. Former N.J.A.C. 5:80-33.27, Allocation needs analysis, recodified to N.J.A.C. 5:80-33.25.
Amended by R.2000 d.132, effective 3/20/2000.
See: 32 N.J.R. 191(a), 32 N.J.R. 1065(a).
Inserted a new fourth sentence, and inserted "and attendance by the project owner and managing agent at an NJHMFA-sponsored compliance monitoring seminar," following "needs analysis)" in the new sixth sentence.
Recodified from N.J.A.C. 5:80-33.27 and amended by R.2001 d.170, effective 5/21/2001.
See: 33 N.J.R. 973(a), 33 N.J.R. 1573(b).
Rewrote the second sentence. Former N.J.A.C. 5:80-33.28, Placed in service needs analysis, recodified to N.J.A.C. 5:80-33.29.
Amended by R.2002 d.233, effective 7/15/2002.
See: 34 N.J.R. 1574(a), 34 N.J.R. 2417(a).
Designated the existing text as (a) and substituted "(or its authorized designee)" for "staff" following "NJHMFA"; added (b).
Recodified from N.J.A.C. 5:80-33.28 and amended by R.2003 d.300, effective 7/21/2003.
See: 35 N.J.R. 1616(a), 35 N.J.R. 3298(b).
In (a), amended N.J.A.C. reference; in (b), substituted "Form 8609" for "form", amended N.J.A.C. reference. Former N.J.A.C. 5:80-33.26, Reservations, allocations and binding commitments, recodified to N.J.A.C. 5:80-33.24.
Amended by R.2006 d.112, effective 3/20/2006.
See: 37 N.J.R. 3879(a), 38 N.J.R. 1432(a).
In (a), added "that contains tax credit units" and substituted "may" for "shall".
Amended by R.2007 d.168, effective 5/21/2007.
See: 39 N.J.R. 281(a), 39 N.J.R. 2011(a).
Added (c) and (d).
Amended by R.2008 d.133, effective 5/19/2008.
See: 40 N.J.R. 839(a), 40 N.J.R. 2429(b).
In (b), substituted "within 90 days after the last building in the development is placed in service pursuant to IRS Notice 88-116" for "at the latter of six months following the issuance of the final certificate of occupancy for the project or two months after the first year of the credit period".
Amended by R.2011 d.239, effective 9/6/2011.
See: 43 N.J.R. 917(a), 43 N.J.R. 2293(a).
In (a), substituted "or representative" for "and managing agent".
Amended by R.2013 d.086, effective 6/17/2013.
See: 45 N.J.R. 530(a), 45 N.J.R. 1511(a).
In (b), substituted "permanent loan closing" for "the last building in the development is placed in service pursuant to IRS Notice 88-116". Amended by 56 N.J.R. 343(b), effective 3/4/2024