We want to share an excellent article with you that was recently published in units Magazine, a trade publication featuring news and newsmakers in the multifamily housing industry. This article, A Way to Protect Low Income Housing Tax Credits, was penned by MiddleOak’s national marketing manager, Bill Hall.
To summarize, the Low-Income Housing Tax Credit (LIHTC) program has allocated more than $7.5 billion in federal tax credits for low income housing. These tax credits have been applied to more than 1.76 million apartment homes. The “basis” for the calculation of tax credits is the value of the building and improvements. If something happens to the property that reduces the basis—the tax credits are reduced or eliminated.
Normally, loss of tax credits is not covered by insurance under the standard definition of business income. Now, an innovative optional endorsement covers loss of tax credits as part of the loss of income. This endorsement is available to property managers and owners who can find themselves caught in the middle when tax credits are lost because of a covered cause of loss such as a fire.
This is where you come in. The MiddleOak habitational program, which you can access through Big “I” Markets, offers this endorsement. It’s a key coverage feature that will help you stand out when submitting proposals for low-income housing developments.
Feel free to request an article reprint of this units magazine piece to use as part of your conversation with your clients. According Randy Phelps, Partner at HNI Risk Services, who is quoted in the linked article, “Very few developers know that the coverage is out there.”
Make your clients aware of this important coverage and be a cut above the others!
For more information on this product, log into www.bigimarkets.com and click on “Habitational” from the commercial products menu. The Habitational – Apartment program on Big “I” Markets can consider, among other occupancy classes, low-income housing accounts with 11 units or more located in GA.
Andrew McElhannon is the Member Services Coordinator for the Independent Insurance Agents of Georgia www.iiag.org, and can be contacted at: firstname.lastname@example.org or b y phone at 770-458-0093, x.110, or 800-878-6487.