GAO Releases Report on LIHTC Development Costs

On September 18, the Government Accountability Office (GAO) released its report – “Low-Income Housing Tax Credit: Improved Data and Oversight Would Strengthen Cost Assessment and Fraud Risk Management” – on the costs of developing LIHTC properties.

Measuring development costs of LIHTC properties in 10 different states between 2011 and 2015, the report indicated that the median total development cost per unit was $204,000 and calls for the IRS to require general contractor cost certifications for LIHTC developments, encourage allocating agencies and other stakeholders to collaborate on more standardized cost data and communicate to allocating agencies on how to collect information and review information on LIHTC syndication expenses. And finally the report recommends Congress designate an agency to collect and maintain cost-related data from allocating agencies and periodically report on LIHTC development costs.

CLICK HERE to access the report

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