lihtc recapture bond
While the IRS no longer requires a disposition bond (IRS form 8693) to avoid tax credit recapture in the event of ownership disposition in a Low Income Housing Tax Credit Section 42 project, the tax credit recapture exposure still exists.
Many institutional investors refuse to dispose of ownership before the 15 year federal compliance period is up or require some type of collateral to protect them from tax credit recapture.
CMR Risk & Insurance Services, Inc. has developed an exclusive surety product to protect against tax credit recapture and interest penalties due to any non-compliance that they may arise after disposition. This product is provided by an A+ “superior” rated insurance company and covers the entire compliance and audit discovery period.
Please contact us to learn more about the rates, qualifications and underwriting process for our program.