1. Conquering LIHTC Program Compliance
E&A Team, Inc. Presents…
Conquering LIHTC Program Compliance
Presented by: Amanda Lee Gross

2. Tenant Eligibility
Filling in the missing pieces regarding compliance

3. Earned v. Unearned Household Size Household Size Income Determination
Wages
Self
-Employment
Household Size

4. Household Size
Household Size

5. Household Size
Household Size
E.4 /3-10

6. Household
Size
Household Size
B/5-9

7. Household Size
Household Size
D/5-11

8. Household Size
Household Size
E /3-9

9. Household Size
Household Size
Glossary

10. Changes in Household Size
8823 Guide 4-4 & 4-5

11. Changes in Household Size
8823 Guide 4-6

12. Changes in Household Size
8823 Guide 4-5

13. Household Size
Income Determination
Income Determination

14. Income Determination Household Size Income Determination
8823 Guide/4-7 & 4-8

15. Earned Income v. Unearned Income
Household Size
Income Determination
Earned v.
Unearned
Earned Income v. Unearned Income
Earned Income:
Income received that is wages, tips, or other compensation for work performed.
Wages
Self-Employment
Military Pay
Glossary  
Minors (under 18): EXCLUDE ALL EARNINGS
Adult, Dependent, Full-time Students
(not head, co-head, or spouse of head) EXCLUDE ALL EARNINGS IN EXCESS OF $480

16. INCLUDE FOR ALL HOUSEHOLD MEMBERS
Household Size
Income Determination
Earned v.
Unearned
Earned Income v. Unearned Income
Unearned Income:
Income received that is not wages, tips, or other compensation for work performed.
Income from Assets
Social Security, Pensions, etc.
Welfare
Periodic Allowances (Cash & Non Cash Contributions, Child Support, & Alimony)
Unemployment Compensation
Student Financial Assistance
Glossary  
INCLUDE FOR ALL HOUSEHOLD MEMBERS

17. Earned v. Unearned Household Size Income Determination Wages
24 CFR 5.609

18. Determining Annual Income from Wages
Household Size
Income Determination
Earned v.
Unearned
Wages
Determining Annual Income from Wages
HUD B/5-6

19. Determining Annual Income from Wages
Household Size
Income Determination
Earned v.
Unearned
Wages
Determining Annual Income from Wages
10 x 40 X 52 = 20,800

20. Determining Annual Income from Wages
Household Size
Income Determination
Earned v.
Unearned
Wages
Determining Annual Income from Wages

21. Determining Annual Income from Wages
Household Size
Income Determination
Earned v.
Unearned
Wages
Determining Annual Income from Wages

22. Household Size
Income Determination
Earned v.
Unearned
Wages
Raises

23. Earned v. Unearned Raises Household Size Income Determination Wages
HUD B/5-6

24. Household Size
Income Determination
Earned v.
Unearned
Wages
Raises

25. Household Size
Income Determination
Earned v.
Unearned
Wages
Raises

26. Earned v. Unearned When Using Pay Stubs Household Size
Income Determination
Earned v.
Unearned
Wages
When Using Pay Stubs

27. Earned v. Unearned When Using Pay Stubs Household Size
Income Determination
Earned v.
Unearned
Wages
When Using Pay Stubs

28. Earned v. Unearned Self-Employment Household Size Income Determination
Wages
Self
-Employment
Self-Employment
H.11 /5-13

29. Self-Employment - Documentation
Household Size
Income Determination
Earned v.
Unearned
Wages
Self
-Employment
Self-Employment - Documentation
8823 Guide 4-12

30. Earned v. Unearned Self-Employment Household Size Income Determination
Wages
Self
-Employment
Self-Employment
8823 Guide 4-13
Example:
Net income to date Aug –Dec : $12,000
$12,000 X 12 months = $144,000
$144,000/ 5 months = $28,800

31. If box “H” is checked, then the net income noted may not reflect an entire year of earnings. Clarification needs to be obtained from the business owner as to when the business began and then income needs to be annualized accordingly.
If an amount is listed in item 11 or 26, obtain clarification from the business owner as to whether the contract labor/wages is paid to a household member. If it is, this amount must be added to annual income.
If an amount is listed in item 13, obtain clarification from the business owner as to what method of depreciation was used. Only depreciation computed on a straight- line basis can be used as business expense when determining net income.
Net income from the business is found in line item 31. If this amount is a negative amount, income from this source must be counted as zero. Negative amounts do NOT offset other household income.

32. Conquering LIHTC Program Compliance
E&A Team, Inc. Presents…
Conquering LIHTC Program Compliance
Presented by: Amanda Lee Gross