LIHTC Essentials-Presentation

Presentation - LIHTC Essentials

Pdf Summary

This NAHRO training, “LIHTC Essentials,” provides a foundational overview of the Low-Income Housing Tax Credit program for beginners in property management, leasing, compliance, development, investing, and housing agency roles.<br /><br />It explains why LIHTC exists: to help close the national affordable housing gap by encouraging developers to build, preserve, or rehabilitate rental housing in exchange for tax credits. The course describes the main oversight structure, including the IRS, U.S. Treasury, HUD, and state or local Housing Finance Agencies (HFAs), and outlines the roles of developers, investors, and property managers in the tax credit cycle.<br /><br />The training reviews the key governing documents for LIHTC properties, such as Internal Revenue Code Section 42, Treasury regulations, HUD Handbook 4350.3, HFA compliance guides, and Land Use Restrictive Covenants (LURAs). It also introduces the main forms used in compliance, including the Tenant Income Certification (TIC), IRS Form 8823, IRS Form 8609, and lease addenda.<br /><br />Major program concepts covered include credit types (9% and 4%), qualified basis, the 10-year credit period, AMI-based income and rent limits, minimum set-asides, and how to calculate gross rent and tenant rent using utility allowances and mandatory fees. The course also explains income eligibility, verification rules, asset income, imputed income, and special household rules such as full-time student restrictions.<br /><br />Additional modules address annual recertifications, household changes, over-income tenants, the Next Available Unit Rule, lease basics, unit transfers, vacant unit rules, and ongoing compliance. The training concludes with audit preparation, physical inspection standards, record retention, and corrective actions for common findings.<br /><br />Overall, the course is an introductory compliance guide for understanding how LIHTC properties are managed and monitored to maintain affordable housing.

Keywords

LIHTC

Low-Income Housing Tax Credit

affordable housing

property management

compliance

IRS Section 42

Tenant Income Certification

income eligibility

rent limits

Housing Finance Agencies