Established under the Tax Reform Act of 1986, the Low-Income Housing Tax Credit (LIHTC) program is a primary mechanism for expanding affordable rental housing. Through this program, state and local agencies receive authority to allocate tax credits that support the acquisition, repair, rehabilitation, or new construction of rental housing intended for lower-income households.
Under LIHTC reporting and oversight, HUD collects LIHTC information at both the property level and the tenant level. HUD’s database captures project-specific details such as development size, unit mix, and geographic location. It also includes tenant-level household data that reflects demographic and financial characteristics of residents living in LIHTC-assisted properties. A significant portion of this information is supplied by state housing finance agencies that administer LIHTC.
This course will cover the LIHTC program’s purpose and background, along with the roles and obligations of PHAs, HUD, and the IRS. It will also address the responsibilities of property managers, how errors and noncompliance occur, how to prevent them, and what happens when mistakes are found. Topics include financial reviews, documentation requirements, building-condition inspections, audits, accounting protocols, and data-entry practices. The course also includes related 2025–2026 housing regulations; the consequences of accounting and operational mistakes; methods for collecting and organizing LIHTC records; emergency, short-term, and long-term utility assistance; enterprise income verification procedures; tenant selection plan requirements; physical forces that affect buildings; inspection practices; HUD Notice H 2023–10; IRS and HUD thresholds and reporting rules; HOTMA household eligibility standards; HOTMA and IRS income limits for low-income housing; rent limits and subsidy calculations; documentation and field work needed for audits; HUD and IRS verification and audit processes; penalties for LIHTC noncompliance; the Section 8 Voucher Program; and the Tenant Rental Assistance Certification System (TRACS).
One key law impacting LIHTC is the Housing Opportunity Through Modernization Act (HOTMA), with an implementation deadline of January 1, 2027. HOTMA is intended to make HUD programs more aligned, more efficient, and simpler for families to understand and follow. Its purpose is to modernize and streamline procedures and documentation for households that qualify for housing assistance.
We will also address NSPIRE, which introduces stricter inspection expectations for safety-related items such as smoke detectors, carbon monoxide detectors, heating, ventilation, and air conditioning (HVAC) systems, ground fault circuit interrupters (GFCI) in kitchens and bathrooms, pest infestation control, and health risks associated with mold.
NSPIRE deficiency categories—life-threatening, severe, moderate, and low—are based on immediate and longer-term health and safety risk. Required correction timelines are: life-threatening items within 24 hours; severe and moderate items within 30 days; and low-risk items within 60 days.
NSPIRE also requires HUD to implement a new scoring model. Properties begin with a 100-point score before inspection, and points are deducted as deficiencies are identified. A score under 60 is considered a failed inspection, and a score below 30 will likely trigger HUD enforcement actions. The updated inspection approach is designed to safeguard tenant health and safety and confirm that units are suitable for comfortable living. Public Housing Authorities (PHA) and low-income property owners are expected to perform unit inspections annually and also when requested by a tenant.
The LIHTC program currently serves as an active strategy to expand and preserve affordable rental housing for low-income and very low-income households. It drives private investment by allowing state housing agencies to allocate tax credits to developers, who partner with investors that provide capital in exchange for those tax credits.
LIHTC-financed properties must reserve a meaningful portion of units for low-income renters. Because states administer the program, they have the flexibility to tailor implementation so it can reach renters with incomes below federal minimum thresholds.
Under the Housing and Economic Recovery Act of 2008, state HFAs administering LIHTC must provide HUD with demographic data on households in LIHTC properties, including race, ethnicity, family composition, age, income, use of rental assistance, physical disability status, mental disability status, emotional illness status, and monthly rental payments. Beginning in 2021, HUD obtained much of this information through compliance enforcement activity.
A related federal law, the Housing Opportunity Through Modernization Act (HOTMA), was enacted in 2016 and is largely administered through HUD. HOTMA aims to streamline low-income housing programs, including housing projects and the Section 8 voucher program, and its implementation date has been extended to January 1, 2027.
Areas Covered:-
LIHTC program purpose:
Learning Objectives:-
Why Should You Attend?
LIHTC compliance remains a pressing issue with strict standards and clear enforcement expectations.
Noncompliance can create major operational disruption, including significant penalties and loss of funding.
A central goal of this class is to highlight the errors most frequently identified in audits and to explain how to carry out day-to-day operations in a way that aligns with the law and the intent of the law, consistent with IRS and HUD expectations. Mistakes can create serious exposure, including the loss of tax credits. Common issues include unreported income or assets, calculation mistakes, inaccurate tenant reporting, misunderstanding program requirements, incomplete or disorganized files, incorrectly filed documents, failure to back up electronic records, data-entry mistakes, and miscalculations that lead to overpaying or underpaying utility allowances. Key best practices include ensuring all forms are signed, using the correct form, using the most current version, avoiding crossouts, not correcting mistakes by writing over them, and keeping handwriting legible. Staff must also plan for added household members such as expected children, adopted children, students, or foster children. Information entered in multiple sections of a form must match in wording and units to prevent inconsistencies. To reduce mistakes, work should be double-checked, procedures should be written clearly and followed consistently, staff should be trained and retrained when needed, and offices should conduct internal self-audits before formal audits occur.
HUD expects owners to maintain current EIV and TSP procedures that accurately reflect HOTMA rules, allowable owner discretion choices, and enforcement deadlines. This webinar will help participants avoid frequent compliance pitfalls such as misapplying asset limits, mishandling interim reexaminations, misusing EIV reports, or adopting policies that conflict with fair housing and civil rights requirements.
Leadership teams, architects, engineers, purchasing agents, and inspectors must understand what to inspect and how each unit will be scored.
PHAs will be responsible for informing tenants of updated rights under NSPIRE as well as revised EIV and TSP procedures.
Tenants should understand their new rights and how to participate in the inspection process. They should know how to coordinate with the PHA to schedule time to take part in inspections, what steps to take when they identify a discrepancy, and how the ranking system works—especially how to recognize conditions that create serious health hazards.
Property owners (investors) renting to households using Section 8 benefits may need to set aside funds for safety-related upgrades. They must know the required self-inspection frequency and the inspection scope. If deficiencies exist, renting may not be allowed until repairs are completed. The combined impact of lost rent, repair costs, and carrying a vacant unit can be substantial.
Who Should Attend?
EDUCATION: - Bachelor of Science in Civil Engineering, University of California at Davis LICENSES: • California: Professional Civil Engineer • Illinois: Professional Engineer • New York: Professional Engineer ENGINEERING EXPERIENCE: • Owner, WARWICK EDUCATION AND TRAINING (2025–present) o Webinars o Writing • Owner, PATTY & KEITH INC. (2011–2023) o Civil engineering o Real estate due diligence o Site assessments • Civil Engineer, Federal Government (1988–2011) o Structural evaluations o Environmental, safety, and health o Civil engineering INSTRUCTOR EXPERIENCE: • Oakton and Kankakee Colleges: Civil Engineering (2025–present) • LORMAN: Civil Engineering (2019–present) • Edumind/School of P.E.: Exam preparation (2015–present) • University of Washington: Construction Management (2017) • Yuba College: Civil Engineering (2015–2016)
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