LIHTC Affordable Housing Compliance Inspection Checklist
This LIHTC affordable housing compliance inspection checklist provides a structured evaluation framework for the critical compliance requirements of properties receiving Low Income Housing Tax Credits. LIHTC non-compliance triggers IRS Form 8823 reporting, credit recapture, and potential loss of investor equity - consequences that can result in millions of dollars in liability. Annual agency inspections, physical condition requirements, and ongoing income and rent limit compliance all require me
- Industry: Property Management
- Frequency: Monthly Compliance Review / Annual Full Audit
- Estimated Time: 2-4 hours
- Role: Compliance Manager / Property Manager
- Total Items: 28
- Compliance: IRC Section 42 Low Income Housing Tax Credits, IRS Revenue Procedure 2016-15 (LIHTC Compliance), HUD LIHTC Tenant Data Collection Requirements, State Housing Finance Agency LIHTC Compliance Rules, HOME Program Requirements (if layered financing)
Income and Rent Limit Compliance
Verify income and rent limits are being observed.
- Current year HUD-published income and rent limits obtained and implemented?
- No LIHTC unit rents exceeding current applicable rent limits?
- Current utility allowance schedule obtained and applied in rent calculations?
- Required set-aside percentage of LIHTC units occupied by income-eligible households?
- Any over-income households addressed per next-available unit rule?
Income Certification Files
Review income certification files for accuracy and completeness.
- All LIHTC unit initial income certifications on file and complete?
- Annual recertifications current for all LIHTC households?
- Income documentation (pay stubs, tax returns, bank statements) sufficient per TIC requirements?
- Student rule compliance verified for any households with full-time students?
- All Tenant Income Certifications fully executed with resident signatures?
Physical Inspection Readiness
Assess readiness for agency physical inspection.
- All LIHTC units meet HUD Housing Quality Standards (HQS)?
- Common areas meeting physical condition standards for agency inspection?
- No significant deferred maintenance that would fail REAC or agency inspection?
- All prior agency inspection deficiencies corrected and documented?
- Next agency inspection date tracked and preparation plan in place?
Compliance Monitoring and Reporting
Verify ongoing monitoring and state agency reporting compliance.
- Annual owner certification submitted to state housing agency on time?
- Annual tenant data report submitted to state agency per monitoring requirements?
- Any IRS Form 8823 filings tracked and corrective action documented?
- Compliance calendar current showing all certification and reporting deadlines?
- Extended use agreement terms known and extended compliance period tracked?
Documentation and Training
Ensure compliance documentation and staff training are current.
- Property-specific compliance manual current and approved by state agency?
- All property staff handling certifications trained in LIHTC compliance?
- Investor/syndicator reporting current per partnership agreement?
- Compliance files audit-ready and organized per state agency file requirements?
- Monthly compliance review results filed in compliance records?
- Compliance requirements for all layered financing programs tracked (HOME, CDBG, bonds)?
- Extended use period exit strategy known and compliance obligations through end of period documented?
- Qualified basis calculated and monitored to ensure no reduction from unit set-aside failures?
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Why Use This LIHTC Affordable Housing Compliance Inspection Checklist?
This lihtc affordable housing compliance inspection checklist helps property management teams maintain compliance and operational excellence. Designed for compliance manager / property manager professionals, this checklist covers 28 critical inspection points across 5 sections. Recommended frequency: monthly compliance review / annual full audit.
Ensures compliance with IRC Section 42 Low Income Housing Tax Credits, IRS Revenue Procedure 2016-15 (LIHTC Compliance), HUD LIHTC Tenant Data Collection Requirements, State Housing Finance Agency LIHTC Compliance Rules, HOME Program Requirements (if layered financing), National Council of State Housing Agencies (NCSHA) Compliance Standards, UK Affordable Housing Standards, Australia National Rental Affordability Scheme (NRAS). Regulatory-aligned for audit readiness and inspection documentation.
Frequently Asked Questions
What does the LIHTC Affordable Housing Compliance Inspection Checklist cover?
This checklist covers 28 inspection items across 5 sections: Income and Rent Limit Compliance, Income Certification Files, Physical Inspection Readiness, Compliance Monitoring and Reporting, Documentation and Training. It is designed for property management operations and compliance.
How often should this checklist be completed?
This checklist should be completed monthly compliance review / annual full audit. Each completion takes approximately 2-4 hours.
Who should use this LIHTC Affordable Housing Compliance Inspection Checklist?
This checklist is designed for Compliance Manager / Property Manager professionals in the property management industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.
Can I download this checklist as a PDF?
Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.