The Ohio Housing Finance Agency's (OHFA) Office of
Program Compliance (PC) has received a significant increase in
resident complaints regarding lease non-renewal, lack of good cause
eviction and other termination of tenancy. As such, PC has revised
the Low Income Housing Tax Credit (LIHTC, also known as Housing Tax
Credits or HTC) Lease Addendum currently used at LIHTC projects.
Lease Addendum must be used by owners/property managers effective
January 1, 2016.
The IRS makes clear that termination/eviction in a
LIHTC property can only be done on the basis of good cause.
Non-renewal of the lease does not constitute good cause. IRS Revenue
Rule 2004-82 provides in relevant part: Section 42(h)(6)(I)
requires that an extended low-income housing commitment include a
prohibition during the extended use period against (1) the eviction
or the termination of tenancy (other than for good cause) of an
existing tenant of any low-income unit (no-cause eviction
In order to ensure protection for residents in LIHTC-
or HTC-funded properties, OHFA is requiring owners/property managers
to begin using the revised addendum effective January 1, 2016. The
revised addendum should be used for all new move-ins beginning
January 1, 2016 and moving forward. For residents that are in-place
prior to January 1, 2016, owners/property managers should use the
revised addendum at the time of annual re-certification or
verification of student status. Failure to use the revised addendum
may result in the issuance of Form 8823 and/or placement on OHFA's
Watch List which could limit an owner's ability to access OHFA
Owners/property managers should keep in mind the
revised LIHTC Addendum is not to be used for federally subsidized
properties, i.e., HUD Section 8, USDA RD 515, or others with
project-based rental assistance.