58.1-439.12:04 - Tax credit for participating landlords.
§ 58.1-439.12:04. Tax credit for participating landlords.
A. As used in this section, unless the context clearly shows otherwise, theterm or phrase:
"Dwelling unit" means an individual housing unit in an apartment building,an individual housing unit in multifamily residential housing, asingle-family residence, or any similar individual housing unit.
"Eligible housing area" means a census tract in the Richmond MetropolitanStatistical area in which less than 10 percent of the residents live belowthe poverty level, as defined by the United States government and determinedby the most recent United States census.
"Housing authority" means a housing authority created under Article 1 (§36-1 et seq.) of Chapter 1 of Title 36 of this Code or other governmentagency that is authorized by the United States government under the UnitedStates Housing Act of 1937 (42 U.S.C. § 1437 et seq.) to administer a housingchoice voucher program, or the authorized agent of such a housing authoritythat is authorized to act upon that authority's behalf. The term shall alsoinclude the Virginia Housing Development Authority.
"Housing choice voucher" means tenant-based assistance by a housingauthority pursuant to 42 U.S.C. § 1437f et seq.
"Participating landlord" means any person engaged in the business of therental of dwelling units who is (i) subject to the Virginia ResidentialLandlord and Tenant Act (§ 55-248.2 et seq.) and (ii) performing obligationsunder a contract with a housing authority relating to the rental of qualifiedhousing units.
"Qualified housing unit" means a dwelling unit that is located in aneligible housing area for which a portion of the rent is paid by a housingauthority, which payment is pursuant to a housing choice voucher program.
B. For taxable years beginning on or after January 1, 2010, a participatinglandlord renting a qualified housing unit shall be eligible for a creditagainst the tax levied pursuant to § 58.1-320 or 58.1-400 in an amount equalto 10 percent of the fair market value of the rent for the unit, computed forthat portion of the taxable year in which the unit was rented by suchlandlord to a tenant participating in a housing choice voucher program. TheDepartment of Housing and Community Development shall administer and issuethe tax credit under this section. If (i) the same parcel of real propertycontains four or more dwelling units and (ii) the total number of qualifiedhousing units on the parcel in the relevant taxable year exceeds 25 percentof the total dwelling units on the parcel, then the tax credit under thissection shall apply only to a limited number of qualified housing units withregard to such parcel of real property, with the limited number being equalto 25 percent of the total dwelling units on such parcel of real property inthe taxable year.
C. The Department of Housing and Community Development shall issue taxcredits under this section on a fiscal year basis. The maximum amount of taxcredits that may be issued under this section in each fiscal year shall be$450,000.
D. Participating landlords shall apply to the Department of Housing andCommunity Development for tax credits under this section. The Department ofHousing and Community Development shall determine the credit amount allowableto the participating landlord for the taxable year and shall also determinethe fair market value of the rent for the qualified housing unit based on thefair market rent approved by the United States Department of Housing andUrban Development as the basis for the tenant-based assistance providedthrough the housing choice voucher program for the qualified housing unit. Inissuing tax credits under this section, the Department of Housing andCommunity Development shall provide a written certification to theparticipating landlord, which certification shall report the amount of thetax credit approved by the Department. The participating landlord shallattach the certification to the applicable income tax return.
E. The Board of Housing and Community Development shall establish and issueguidelines for purposes of implementing the provisions of this section. Theguidelines shall provide for the allocation of tax credits amongparticipating landlords requesting credits. The guidelines shall be exemptfrom the Administrative Process Act (§ 2.2-4000 et seq.).
F. In no case shall the amount of credit taken by a participating landlordfor any taxable year exceed the total amount of tax imposed by this chapterfor the taxable year. If the amount of credit issued by the Department ofHousing and Community Development for a taxable year exceeds the landlord'stax liability imposed by this chapter for such taxable year, then the amountthat exceeds the tax liability may be carried over for credit against theincome taxes of the participating landlord in the next five taxable years oruntil the total amount of the tax credit issued has been taken, whichever issooner. Credits granted to a partnership, limited liability company, orelecting small business corporation (S corporation) shall be allocated to theindividual partners, members, or shareholders, respectively, in proportion totheir ownership or interest in such business entities.
G. No person shall be allowed a tax credit under § 58.1-339.9 and thissection for the rental of the same dwelling unit in a taxable year.
H. In the event that the amount of the qualified requests for tax credits forparticipating landlords in the fiscal year exceeds $450,000, the Departmentof Housing and Community Development shall pro rate the tax credits among thequalified applicants.
(2010, cc. 520, 608.)