1. Qualifying Applicants for the LIHTC Program

2. Max Rent UA AMI% Critical Components The Student Rule Income Limits
Income Qualifying
AMI% UA
Critical Components
The Student Rule

3. Applicant & Unit Qualification
Determination annual income of individuals
24 CFR and HUD Handbook
Applicants should be advised there are maximum income limits that apply to the units.
Explain anticipated income of all members must be verified
3rd party and Pay Stubs
Units are only eligible for the program if the proper documentation verifying the household’s eligibility is present.
Units are considered out of compliance
if the initial tenant income certification is inaccurate,
documentation of initial eligibility is insufficient,
or no initial tenant file is on record.

4. Avoiding Fair Housing Complaints
AMI% Steering?
Market Unit equipment vs TC units
Market unit flooring vs TC units
Screening
Tenant Selection Criteria (TSC)
This is an owner/agent document
No federal requirements
States may want specific information (IL & TX)

5. Tenant Selection Criteria
At a minimum, TSC should include the following:
Occupancy standards - number of households based on the size of the unit (IL)
Tax Credit program eligibility factors - income limits and student status eligibility
Minimum income requirements - management option (Income to debit %)
Citizenship requirements - management option (Sec 8)

6. Tenant Selection Criteria – Cont.
Screening criteria - credit checks, criminal background checks. Findings that constitute a rejection should be clearly spelled out.
Waiting list process – Applicant’s obligation & owner/agent obligations
Transfer policy – Be mindful of unit qualifying and the 6 month lease requirements
Breakdown of set aside - (special needs units, or a Housing for Older Persons Act age restriction on the project)
Rectification requirements - Must move out, the 140% if not 100% Tax Credit

7. Calculating Rents

8. Calculating Rents Never Exceed the Max Rent Utility Allowance
Self Report
Refund and/or credit over-charges
Prior to being notified of a state audit

9. Calculating Rents
Add all qualified sources of income to come up with the total household income. For the household to qualify for a RHTC unit, total household income must be at or below the maximum allowable qualifying income.
Income and assets must be verified and calculated in accordance with the Section 8 methodology as described in Chapter 5 of HUD Handbook

10. Documentation Protects The Credits
Initial Files – Compliance period
Rental Application
Tenant Income Questionnaire(s)
Signed Tenant Income Certification (TIC) – Recert as well
Proper verifications of all sources of earned and unearned income and assets
IRS Student Status Self-Certification and applicable 3rd party verification
Initial and subsequent leases and addenda executed by the tenant(s) and owner
For Section 8 recipients, a copy of the HAP Contract and the current Amendment from the Section 8 agency, showing the rental assistance

11. Samir Yasa Director of Compliance
PH: