Property Valuation
Indiana's statewide LIHTC (Low-Income Housing Tax Credit) program affects property appraisals of affordable housing by:
ARequiring higher appraisals to justify tax credit awards
BRequiring appraisers to value the property based on its restricted income (LIHTC rents) rather than market rents✓ Correct
CExempting LIHTC properties from appraisal requirements
DAlways requiring the cost approach only
Explanation
LIHTC properties have income restrictions that cap rents below market. Appraisers must value them based on the restricted income stream rather than market rents, typically resulting in a lower appraised value than an unrestricted property.
Related Indiana Property Valuation Questions
- An appraisal conducted for mortgage lending purposes is typically ordered by:
- Which of the following statements about depreciation in the cost approach is correct?
- An adjustment for market conditions (time adjustment) in the sales comparison approach accounts for:
- The reconciliation step in an Indiana appraisal involves the appraiser:
- The principle of regression in Indiana real estate means:
- Exposure time in an Indiana appraisal is defined as:
- Regression in real estate valuation means that:
- Plottage value refers to the increase in value when:
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