Form 8703 Form 8703 Annual Certification of Qualified Residential Rental Pro

Form

8703

(Rev. January 2009)

Annual Certification of a Residential Rental Project
OMB No. 1545-1038

2011

(Complete a separate Form 8703 for each project.)

Department of the Treasury
Internal Revenue Service

Part I

For calendar year

.

Amended Form

General Information

©

Report Number (For IRS use only)

Address of building/project (Do not use P.O. box.)

Name and address of owner of project

Name and address of operator of project

Taxpayer identification number of owner of project

1

Taxpayer identification number of operator of project

Check the box for the test elected for the project:

a

20-50 test

b

40-60 test

d

20-60 test
(GO Zone, Midwestern disaster areas,
and Hurricane Ike disaster areas only)

e

40-70 test
(GO Zone, Midwestern disaster areas,
and Hurricane Ike disaster areas only)

2

c

25-60 test (NYC only)

Date (month / day / year) the qualified project period began

3a Was a low-income housing credit allocation issued by a housing credit agency for this project?

©

/

©

Yes

/
©

No

b If “Yes,” enter the building identification number (BIN) assigned to the building by the housing credit
©
agency (see instructions)

Part II

Annual Determinations

Add new question 4 from Insert A

5
5

4

Total number of residential rental units in project

6

5

Number of units actually occupied by individuals whose income does not exceed the applicable
income limit (see instructions)

7

6

4

Number of units occupied by continuing residents whose income is treated as not exceeding
the applicable income limit (see instructions)

7

9

8

109

Part IV

6

Total number of low-income units in project (add lines 5 and 6)

7

8

5

9

Divide line 7 by line 4 and enter the percentage (If the line 8 percentage is less than the
percentage for the test elected in Part I, item 1 (i.e., 20%, 40%, or 25%), see instructions.)
Deep-rent skewed project election (see instructions):

10a

III Insert C

7
8

%

8

9a

8

10

b Divide line 9a by line 7 and enter the percentage

Part III

9

10

a Number of 40%-and-under low-income units
New Part

5

7

6
8

6

%

9b

New questions 11, 12, 13 from Insert A

Certification

Under penalties of perjury, I certify that the above project (check one) continues to meet ©
does not meet ©
the requirements of
subsection 142(d) of the Internal Revenue Code and that I have examined this form, and to the best of my knowledge and belief, the information
is true, correct, and complete.

©

©

Signature of project operator

Date

For Privacy Act and Paperwork Reduction Act Notice, see back of form.
Indent and place Sign Here

Place preparer signature box from Insert B

see Form 8038

see Form 8038

©

Type or print name and title
Cat. No. 64650C

Form

8703

(Rev. 1-2009)

2011

Part III from Insert D
Add new Lines 11-13. from Insert A
Form 8703 (Rev. 1-2009)

What's
New sec.

2011

Add new Line 4. from Insert A

General Instructions

from Insert Section references are to the Internal Revenue
Code unless otherwise noted.
D
Purpose of form. Form 8703 is used by an
operator of a residential rental project to
provide annual information the IRS will use to
determine whether a project continues to be a
qualified residential rental project under
section 142(d). If so, and certain other
requirements are met, bonds issued in
connection with the project are considered
“exempt facility bonds” and the interest paid
on them is not taxable to the recipient.
Who must file. The operator of a residential
rental project for which an election was made
under section 142(d) must file Form 8703
annually. A separate Form 8703 must be filed
for each project.
When to file. File Form 8703 by March 31
after the close of the calendar year for which
the certification is made. Form 8703 must be
filed annually during the qualified project
period. See the instructions for line 2 for the
6
definition of “qualified project period.”
Where to file. File Form 8703 with the:
Internal Revenue Service Center
Ogden, UT 84201
Penalty. Section 6652(j) provides for a penalty
of $100 for each failure to comply with the
section 142(d)(7) certification requirements
unless it can be shown that failure to file is due
to reasonable cause and not to willful neglect. 7

Specific Instructions
Part I—General Information

IV

Enter the address of the project. Do not use
P.O. boxes. Enter the name, address (including 9
ZIP code), and taxpayer identification number
of both the owner and the operator of the
project.
Amended form. If you are filing an amended
Form 8703, check the Amended Form box and
complete Parts I and III. Then complete only
those lines of Part II you are amending by
entering the correct information.
Line 1. To be a qualified residential rental
project, one of the following tests must have
been elected for the project:
● 20-50 test. 20% or more of the residential
units must be occupied by individuals whose
income is 50% or less of the area median
gross income.
● 40-60 test. 40% or more of the residential
units must be occupied by individuals whose
income is 60% or less of the area median
10
gross income.
● 25-60 test (NYC only). 25% or more of the
residential units must be occupied by
individuals whose income is 60% or less of
the area median gross income.
● 20-60 test (Gulf Opportunity (GO) Zone,
Midwestern disaster areas, and Hurricane
Ike disaster areas only). 20% or more of the
residential units must be occupied by
individuals whose income is 60% or less of
the area median gross income.
● 40-70 test (GO Zone, Midwestern disaster
areas, and Hurricane Ike disaster areas
only). 40% or more of the residential units
must be occupied by individuals whose
income is 70% or less of the area median
gross income.

Page

See Rev. Rul. 94-57, 1994-2 C.B. 5, for
guidance on computing the income limits
applicable to these tests. See Pub. 4492 for
details about the GO Zone. See Pub. 4492-B
for details about the Midwestern disaster
areas.

increase up to 170% of the applicable income
limit. If this election is made, at least 15% of
all low-income units in the project must be
occupied by tenants whose income is 40% or
less of the area median gross income.

10
Line 2. The qualified project period is the
period beginning on the first day that 10% of
the residential units are occupied and ending
on the latest of (a) the date that is 15 years
after the date that 50% of the residential units
10
are occupied, (b) the first day that no
tax-exempt private activity bond issued for the
project is outstanding, or (c) the date that any
assistance provided for the project under
section 8 of the United States Housing Act of
1937 terminates.
Lines 3a and 3b. If a low-income housing
credit allocation was issued for more than one
building in the project, attach a schedule
listing the building identification number (BIN)
for each building. Total

Part II—Annual Determinations
Line 5. Enter the number of residential rental
units occupied by individuals whose income is
(a) 50% or less of area median gross income
(if box 1a was checked), (b) 60% or less of
area median gross income (if box 1b, 1c, or 1d
was checked), or (c) 70% or less of area
median gross income (if box 1e was checked).
Do not include any units included on line 6. 7
Line 6. Enter the number of residential rental
units occupied by continuing residents whose
income exceeds the applicable income limit
but whose income is treated as not exceeding
the applicable income limit. Do not include any
units included on line 5. See section
142(d)(3)(B). 9
6
Line 8. If line 8 is less than the percentage for
the test elected in item 1, Part I (i.e., 20%,
40%, or 25%), the project is considered in
post-issuance noncompliance. In this case,
check the box in Part III to certify that the
project “does not meet” the requirements of
section 142(d).
IV
In general, unless the noncompliance is
corrected within a reasonable period, the
noncompliance will cause the exempt facility
bonds for the project to not be qualified bonds
under section 141. When the bonds are no
longer qualified, the interest paid or to be paid
on the bonds is taxable, and the issuers or
brokers of the bonds must report the taxable
interest to bond holders as required by section
6049. See Regulations sections
1.103-8(b)(1)-(9) and sections 141 and 103 for
additional information.
Lines 9a and 9b. Complete these lines only if
an election was made to treat the project as a
deep-rent skewed project under section
142(d)(4). The 15-40 test that applies to the
deep-rent skewed project election is not an
additional test for satisfying the requirements
of section 142(d)(1). The 15-40 deep-rent
skewed project test relates to the
determination of a low-income tenant’s
income. Generally, a continuing resident’s
income may increase but not exceed 140% of
the applicable income limit (i.e., 50% or less
or 60% or less of the area median gross
income under the line 1a or 1b test). When
the deep-rent skewed election is made and
the requirements of section 142(d)(4)(B) are
met, the income of a continuing resident may

2

On line 9a, enter the number of low-income
units occupied by individuals whose income is
40% or less of area median gross income.
Also include the number of units occupied by
continuing residents whose income is treated
as not exceeding the applicable income limit.
If the percentage on line 9b is less than 15%,
the project is not a deep-rent skewed project,
and a continuing resident’s income may not
increase above 140% of the applicable
income limit for purposes of section 142(d).

Privacy Act and Paperwork Reduction
Act Notice New Paid Preparer section from Insert D
We ask for the information on this form to
carry out the Internal Revenue laws of the
United States. Code section 142(d)(7) requires
that an annual certification be filed with the
IRS to determine whether the legal
requirements of that section are being met.
Routine uses of the information provided on
this form include giving it to the Department of
Justice for civil and criminal litigation and to
other federal agencies, as provided by law. We
may disclose the information to cities, states,
the District of Columbia, and U.S.
commonwealths or possessions to administer
their tax laws. We may also disclose the
information to foreign governments pursuant
to tax treaties or to federal and state agencies
to enforce federal nontax criminal laws and to
combat terrorism. If you do not provide this
form or all of the information requested on it,
you may be subject to penalties.
To ensure proper identification of the owner
and operator of the project, Code section
6109 and its regulations require an identifying
number (social security number (SSN) or
employer identification number (EIN)) on the
annual certification.
You are not required to provide the
information requested on a form that is subject
to the Paperwork Reduction Act unless the
form displays a valid OMB control number.
Books or records relating to a form or its
instructions must be retained as long as their
contents may become material in the
administration of any Internal Revenue law.
Generally, return information is confidential, as
required by Code section 6103.
The time needed to complete and file this
form will vary depending on individual
circumstances. The estimated average time is:
Recordkeeping 3 hr., 49 min.; Learning
about the law or the form 1 hr., 17 min.; and
Preparing and sending the form to the IRS
1 hr., 24 min.
If you have comments concerning the
accuracy of these time estimates or
suggestions for making this form simpler, we
would be happy to hear from you. You can
write to the Internal Revenue Service, Tax
Products Coordinating Committee,
SE:W:CAR:MP:T:T:SP, 1111 Constitution Ave.
NW, IR-6526, Washington, DC 20224. Do not
send the form to this address. Instead, see
Where to file.
Note. Regulations have not been issued under section

142(d). Thus, the regulations issued pursuant to section
103 of the 1954 Code continue to apply except as
otherwise modified by the Tax Reform Act of 1986 and
subsequent law.

New questions

Insert A

Yes No check boxes, same
as #3a

4 Are all units in the project rented or available for rent to residents whose income does
not exceed the applicable income limit? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .►
If “Yes,” complete line 5 and lines 11, 12 and 13 in Part II, and skip lines 6 through 10.

Follow 5-10 format

11 Number of units vacated during the calendar year. . . . . . . . . . . . . . . . . . . . . . . . . . 11
12 Number of units vacated during the calendar year and occupied by new residents
who were low-income residents at the time of occupancy. . . . . . . . . . . . . . . . . . . . 12
13 Number of units that were vacated but were held available for low-income residents
as of the end of the calendar year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Instructions

Line 4. In the case of a project in which all of the available residential units are occupied
by individuals whose income is below the applicable income limit, an owner is not
required to annually redetermine the income of the residents under section 142 (d)(3)(A).
Therefore, if “Yes” is checked complete Part II, skipping lines 6 through 10. If “No” is
checked complete Part II in its entirety.
Line 11. Enter the number of low-income units vacated during the calendar year. The
total number of low-income units in the project is entered on line 7.
Line 12. Enter the number of vacated low-income units that were occupied by new
residents who were low-income residents at the time of occupancy. The instructions for
lines 5 and 6 define low-income resident.
6
7
Line 13. Enter the number of vacant low-income units that were held available for lowincome residents as of the end of the calendar year.
Lines 11 through 13 ask questions about low-income units that were vacated during the
calendar year. Sections1.103-8(b)(5)(i) and (ii) provide, that low-income units must be
rented or available for rent on a continuous basis by low-income tenants during the longer
of: (a) the remaining term of the bond, or (b) the qualified project period. Accordingly, if
lines 12 and 13 do not add up to line 11, the project is considered in post-issue
noncompliance. In this case, check the box in Part III to certify that the project “does not
meet” the requirements of section 142(d).
See sections 1.103-8(b)(6)(i) and (ii) regarding correcting the noncompliance within a
reasonable period.

Name of above officer (type or print)

Paid
preparer’s
use only

Preparer’s
signature



Firm’s name (or
yours if self-employed),
address, and ZIP code

Title of officer (type or print)
Date



Check if
self-employed

Preparer’s SSN or PTIN

EIN
Phone no.

Insert B

(

)

c

Part III

Other.
Describe (see instructions) 
Reporting Authority and Description of Bonds

(a) Final maturity date

15

21

20c

Description of Bonds (Complete for the entire issue for which this form is being filed.)
(c) Stated redemption
price at maturity

(b) Issue price

$

$

For Paperwork Reduction Act Notice, see page 4 of the separate instructions.
Name of Bond issue

14a Issuers name

Date of bond issue

CUSIP Number

(d) Weighted
average maturity

$

%

years
Cat. No. 49973K

Issue Price

14b Issuers employer identification number (EIN)

Insert C

(e) Yield

Form

8038

(Rev. 9-2007)

Final maturity date

Insert D
What’s New
Section 3010 of the Housing Assistance Tax Act of 2008, Division C of P.L. 110-289,
(The Housing Act”) enacted July 30, 2008, modified IRC section 142(d)(3)(A).
Accordingly, Questions 4, 11, 12, and 13 have been added to comply with that
modification.
Section III has been added to ascertain information with respect to the Issuer and the taxexempt financing that financed the project under Section 142(d)., This information
should correspond with the information return, Form 8038, filed by the Issuer.
Part III Reporting Authority and Description of Bonds
Line 14a. Enter the issuer’ name, the name of the entity issuing the bonds and not the
name of the entity receiving the benefits of the financing.
Line 14b. Enter the issuer’s employer identification number.
Line 15a. Enter the name of the bond issue, if there is no name of the issue, please
provide other identification of the issue.
Line 15b. Enter the date of the bond issue. The date of the bond issue is generally the date
on which the issuer exchanges the bonds for the underwriter’s (or other purchaser’s)
funds.
Line 15c. Enter the Committee on Uniform Identification Procedures (CUSIP) number of
the latest maturity.
Line 15d. Enter the issue price of the bond issue. The issue price of obligations is
generally determined under Regulations section 1.148-1(b). Thus when issued for cash,
the issue price is the price at which a substantial amount of the obligations are sold to the
public. To determine the issue price of an obligation issued for property, see sections
1271 and 1274 and the Regulations.
Line 15e. Enter the last date on which any of the bonds will mature. Enter the date in an
MM/DD/YYYY format.

Paid Preparer
If an authorized officer of the operator filled in this return, the paid preparer’s space
should remain blank. Anyone who prepares the return but does not charge the
organization should not sign the return. Certain others who prepare the return should not
sign. For example, a regular full-time employee of the operator, such as a clerk, secretary,
etc., should not sign.
Generally, anyone who is paid to prepare a return must sign it and fill in the other blanks
in the Paid Preparer’s Use Only area of the return. The paid preparer must: Sign the
return in the space provided for the preparer’s signature, enter the preparer information,
and give a copy of the return to the operator.