Homeowners who closed on the purchase of their home prior to January 1, 2026, and who make their mortgage payment to one of our servicers, US Bank Home Mortgage or LoanCare, LLC, may be eligible for reimbursement of Recapture Tax.

Please note that Florida Housing will not reimburse for Recapture Tax if a homeowner purchased with a Mortgage Credit Certificate (MCC). Reimbursement applies only to Florida Housing’s BOND first mortgage loan program.

As a state housing agency, Florida Housing Finance Corporation funds its first mortgage loan program through the sale of mortgage revenue bonds (MRBs) to investors which provide borrowers with competitive first mortgage rates and down payment assistance.

To be subject to repayment of any potential Recapture Tax, ALL THREE OF THE BELOW MUST OCCUR:

1. You sell or otherwise dispose of your home within the FIRST NINE (9) YEARS of closing your mortgage loan.
2. In the year you sell or dispose of your home, your income (only the borrowers’ income) has increased and exceeds IRS established income limits.
3. You have a “net” profit from the sale.

If all of the above three occur, complete IRS Form 8828, Recapture of Federal Mortgage Subsidy, to determine if you owe the Federal Recapture Tax. Florida Housing does not provide the IRS forms. They may be obtained from the IRS or the IRS website at www.irs.gov

Mail the above documents along with completed Florida Housing Request for Recapture Tax Reimbursement form to:

1. When do I pay the Federal Recapture Tax?
   If you meet all three conditions and are subject to the Recapture Tax, payment is made when you file your taxes for the year in which you sell or otherwise dispose of your home.
 
2. Does Florida Housing’s Recapture Tax Reimbursement plan mean I do not have to pay the Federal Recapture Tax?
   No. You are still responsible for accurately paying any and all taxes to the IRS. Florida Housing will reimburse you for the actual amount of the Recapture Tax you owe and paid. However, Florida Housing will not reimburse you for any Recapture Tax paid that was not owed. Homeowners should work with an income tax specialist or certified public accountant to confirm Recapture Tax is owed
 
3. What are the guidelines to be eligible for reimbursement?
   • Your loan was financed with Florida Housing’s “BOND” program prior to January 1, 2026.
   • You submit the Florida Housing Request for Recapture Tax Reimbursement form to Florida Housing with the supporting documentation.
   You must submit the request for reimbursement no later than December 31st of the year the Federal Recapture Tax is owed and paid. For example, if your home is sold in 2026, the tax return is filed in 2027. The request for reimbursement must be submitted no later than December 31, 2027.
 
4. How do I apply for reimbursement?
   It’s simple. Fill out the Florida Housing Request for Recapture Tax Reimbursement form and provide the following documents:
   • A signed copy of your Federal Tax return that has been filed showing payment of the Recapture Tax.
   • Proof those taxes have been paid, such as a copy of a cancelled check or bank statement.
   • A completed and signed IRS Form 4506, Request for Copy of Tax Return.
   • A copy of IRS Form 8828, Recapture of Federal Mortgage Subsidy.
   • A copy of your Closing Disclosure from the sale of your home.

Florida Housing Finance Corporation
C/O Homebuyer Loan Program
227 North Bronough Street Suite 5000
Tallahassee, FL 32301
ATTN: Recapture Tax Reimbursement