Land Use Restriction Agreements (“LURA”) for Low Income Housing Tax Credit Developments impose the income and rent restrictions identified in the Development’s final underwriting report and other representations made at application, including but not limited to, specific commitments to provide tenant services, to lease to Persons with Disabilities and/or to provide specific amenities.

Developments beginning the credit period in 2014 or before, that do not have an executed and recorded LURA on file with the Department should contact the assigned Asset Manager to initiate this process. Be prepared to provide the following information:

  1. The signature block information, including confirmation of the name and title of the person who will be executing the LURA;
  2. Legal description of the property (from the title policy, preferably in Word format);
  3. Permitted encumbrances (from the title policy, preferably in Word format);
  4. Names of all lien holders;
  5. Unit numbers for mobility accessible units;
  6. Unit numbers for hearing/visual impairment accessible units, if applicable; and,
  7. Confirmation of the BIN number(s) and applicable fraction(s).

The original recorded LURA must be returned to the Department no later than the end of the first year of the Credit Period, in order to avoid issues of noncompliance. IRS Forms 8609 for the allocation of Housing Tax Credits will not be issued for a building unless there is a recorded LURA in effect and on file with the Department.

For information on the process and procedure to initiate a Housing Tax Credit LURA, review the Post Carryover Activities Manual on the Asset Management webpage.