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federalUnited StatesLow-Income Housing Tax Creditset_aside

Minimum set-aside must be elected and satisfied

lihtc.set_aside.minimum_election · v1.0.0

The project must satisfy the minimum set-aside elected on Form 8609 line 10c by the close of the first year of the credit period and maintain it continuously thereafter. The election is irrevocable.

Failure of the minimum set-aside is the most severe LIHTC finding: it disqualifies the building for the year rather than a single unit.
Confidence
high
Effective from
1990-01-01
Last reviewed
2026-08-22

Evidence required

  • IRS Form 8609(one_per_unit)
  • Owner annual certification to the allocating agency(one_per_year)

Citations

All sources verified within 1 day
  • Internal Revenue Code Section 42 - Low-income housing credit
    42(g)(1)
    statuteSource ↗verified 1d ago
  • Form 8609, Low-Income Housing Credit Allocation and Certification
    Line 10c
    binding_agency_guidanceSource ↗verified 1d ago