Can someone explain what tax credit apartments are? Or section 42 apartments?

Question

We are applying for low-income housing. The manager told us the apartments were section 42 apartments. But I thought section 42 was for purchasing your own home, not for rentals or investors.

I have tried looking on-line, but tax jargon is not my strong point.

Answer 1

You're right-the tax credit is for the owner,( but not for your principle residence.) however there are rules and regulations he/she has to follow to keep those credits-which benefit you.

A certain percentage of occupants need to be 'low income'- something like 60% below the area's median income- and the apartments are generally  rented on a first come first served basis- rather than the 'best application'  system of non section 42 apartments. Also, the rents charged are a certain percent lower than 'average' rents for the area.  Good luck!