Understanding Section 42 Housing
The Section 42 Low-Income Housing Tax Credit (LIHTC) Program is designed to benefit low-to-moderate-income individuals and families. Congress created the Program in 1986 as part of the Tax Reform Act and it is administered by the Internal Revenue Service. The Rose Senior Residences are Section 42 Housing Developments.
Benefits to Qualified Residents
In exchange for investment tax credits, the owners of The Rose offer quality constructed apartments to income-qualified households at rents set no higher than a designated percentage of the local county’s median income as published by the Department of Housing and Urban Development (HUD), often resulting in rents lower than other comparable apartments. To receive this reduction, the owners must annually certify that the residents are qualified under the Program requirements and are paying the correct amount of rent.
Difference From Subsidized Housing
This Program is not a subsidized housing program or Section 8. Each resident is responsible for the full amount of rent each month. The rental amount is not based on individual household income, but rather on the pre-set income limits in the area.
Determining Your Eligibility
To qualify for this Program at The Rose, you must:
- be income eligible;
- not exceed prescribed medical needs requirements;
- meet The Rose Resident Selection Criteria.
To begin the qualification process, please request our Preliminary Applicant Information and Income and Asset Disclosure form, which will help pre-screen for income eligibility. It will be your responsibility to assist us in verifying all income and assets through the appropriate sources by providing the necessary information (names, addresses) to expedite this process. In addition to standard wages, income includes monies received from all sources such as pensions, social security, and asset income. Assets are your valuables other than personal items that must be considered when determining your family income. Examples include savings accounts, certificates of deposit, stocks and bonds. Personal items such as your car or furniture are not included.
Your income must be verified prior to being accepted for residency and is reviewed annually for accuracy. Gross annual income limits in Ames are: 1 person - $28,020; 2 persons - $31,980. In Des Moines: 1 person, $19,040 - $23,800; 2 persons, $21,760 - $27,200.
For more information, contact:
Angela L. Adam, Administrator
Ames Office: 515-268-8828; Des Moines Office 515-244-3300