Wednesday, July 18, 2012

At last, an indictment for housing tax credit fraud.

For very nearly ten years I've been writing about or following the business of low-income housing tax credits. Never, far as I can remember, seen a criminal investigation of a tax credit developer, for anything. I mean, I'm sure most tax credit developers are fine upstanding people -- certainly, they have to be nerds to be in that business at all, so there's a whole layer of opportunists weeded out right up front -- but surely there must be exceptions to the general upstandingness somewhere...?

Hence, all excited to see the Google summary on this article that said someone or other "....charges a 53-year-old Woodbury woman with using an alternative identity to receive, among other things, more than $18000 in Low Income Housing Tax Credits (LIHTC) from the U.S. Department of Housing and Urban Development (HUD)."

I shoulda known, the defendant was a tenant, not a developer. But of course.

What the lady in Woodbury, MN really allegedly did was to understate her income by approximately half to chisel herself a cheap deal on a subsidized apartment.

By the way, for the record, tax credits don't really come from HUD although HUD takes an interest. They come from the Treasury and are administered by state housing finance agencies.

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