LIHTC Essentials-Presentation

Presentation - LIHTC Essentials

Pdf Summary

NAHRO’s “LIHTC Essentials” training provides a broad introduction to the Low-Income Housing Tax Credit program, the main federal tool for creating and preserving affordable rental housing in the U.S. It explains why LIHTC exists, the national housing shortage, and how affordability is generally defined as housing costs at or below 30% of household income.<br /><br />The training covers program governance and oversight, including the roles of HUD, the IRS, the U.S. Treasury, and state/local Housing Finance Agencies (HFAs). It also explains the key governing documents and forms used in compliance, such as Section 42, Treasury regulations, HFAs’ guidebooks, the LURA, IRS Form 8609, Form 8823, the Tenant Income Certification (TIC), and lease addendums.<br /><br />A major focus is on how LIHTC finances housing through tax credits sold to investors, with distinctions between 9% and 4% credits, project types, qualified basis, and how credits are turned into project funding.<br /><br />The course then teaches core occupancy and rent rules: AMI, minimum set-asides, rent limits, utility allowances, mandatory vs. optional fees, blended subsidies, fair housing and equal access, tenant selection plans, eligibility reviews, income and asset verification, annualizing income, student rules, and imputed asset income.<br /><br />Finally, it covers ongoing compliance: annual recertifications, household composition changes, over-income households, the Available Unit Rule, lease requirements, rent changes, unit transfers, vacancies, inspections, audit preparation, record retention, applicable fraction, and compliance timelines over the 15-year compliance period and extended use period.<br /><br />Overall, the course is designed to help new LIHTC professionals understand how to qualify households, calculate rents, maintain files, and avoid compliance violations.

Keywords

Low-Income Housing Tax Credit

LIHTC

affordable rental housing

housing compliance

HUD

IRS Form 8609

Tenant Income Certification

AMI

rent limits

annual recertification