We are officially halfway through 2026, which makes this a good time to ask an important question: If an auditor selected your files today, would they be ready? 👀 Waiting until an audit notice arrives to start reviewing files is a risky approach. A structured mid-year compliance check gives your team an opportunity to identify inconsistencies, correct documentation issues, reinforce procedures, and address recurring problems before they become larger compliance findings. For

Not everything can wait until the annual recertification. Changes happen—and when they do, interim recertifications ensure the file stays accurate and the rent reflects the household’s current situation. 📌 Introduction Annual recertifications are the foundation of compliance—but they don’t capture everything. Income changes, household updates, and life events happen in between. That’s where interim recertifications come in. 👉🏾 They keep the file aligned with reality 👉🏾 T

Live-in aides can be one of the most misunderstood roles in affordable housing. They live in the unit—but they’re not household members. That distinction drives everything from income calculations to lease structure. 📌 Introduction Live-in aides create one of the most unique compliance scenarios in affordable housing. They reside in the unit full-time, but they are not considered part of the household for income, eligibility, or program purposes. 👉🏾 That means how you trea

Childcare deductions can make a meaningful difference for qualifying households—but they’re often misunderstood, misapplied, or used in the wrong program altogether. HOTMA didn’t eliminate this deduction, but it does require teams to be precise about when and how it applies. 📌 Introduction Childcare expenses can reduce adjusted income—but only in programs that actually use adjusted income. Under HOTMA, the rules for childcare deductions did not change—but the expectation for

Medical expense deductions can make a meaningful difference for eligible households—but HOTMA changed how the deduction is calculated. Here’s what counts, who qualifies, and how to apply the updated threshold correctly. 📌 Introduction Medical expense deductions can reduce adjusted income for eligible households—but they are also one of the areas most easily miscalculated. Under HOTMA, the rules did not disappear, but the calculation changed. 👉🏾 The old 3% threshold is no l

When a household in a LIHTC unit goes over-income at recertification, the next steps are critical. The Available Unit Rule applies specifically to LIHTC and does not require the household to move—but it does require immediate action to maintain compliance. Here’s exactly what to do when the rule is triggered. 📌 Introduction The Next Available Unit Rule (AUR) applies specifically to LIHTC properties and comes into play when a household’s income exceeds program limits at recer

Understanding how gross rent and tenant rent work—and why mixing them up can lead to compliance issues. 📌 Introduction Gross rent and tenant rent are often used interchangeably—but from a compliance standpoint, they are not the same. Confusing the two can lead to overcharging residents, miscalculating rents, or triggering avoidable findings during reviews. 👉🏾 Understanding the difference isn’t optional—it’s essential to getting your rent calculations right 📊 Defining the

Unit transfers may feel routine—but from a LIHTC compliance standpoint, they must be evaluated before they’re ever processed. Here’s how to determine if a transfer is allowable and how to handle it correctly from start to finish. 📌 Introduction Transferring a resident from one unit to another within the same property may seem straightforward—update the unit number, issue new keys, and move forward. But from a compliance perspective, transfers require more than coordination—t

Asset rules have changed—and if your team is still operating under the $5,000 threshold, your process is already behind. Here’s what the $50,000 HOTMA update means for how you verify, calculate, and document assets. 📌 Introduction If your team is still applying the $5,000 asset threshold, it’s time to revisit your process. HOTMA introduced a significant shift in how asset income is calculated and verified—one that directly impacts how certifications are processed and how fil

Date mismatches are one of the easiest findings to prevent. Here’s how to align your dates, stay within the 120-day window, and manage layered certifications correctly. 📌 Introduction “The certification says January 1, the lease starts January 15, and the tenant didn’t move in until January 20.” If this sounds familiar, you’re not alone. Date mismatches between move-in, lease, and certification dates are one of the most common—and most preventable—compliance findings. The go

Max Rent minus Utility Allowance equals what the tenant pays. Simple formula, complex details. Here’s the breakdown. 📌 Introduction If there’s one formula every site and compliance professional should have memorized, it’s this: Maximum Gross Rent − Utility Allowance = Maximum Tenant-Paid Rent It sounds simple. But utility allowances are one of the most common sources of errors in LIHTC compliance—not because the math is hard, but because the details trip people up. Whether

Adding or removing household members? Here’s how to evaluate the change, what to document, and when additional certification action may be required. 📌 Introduction Households change. People get married, have babies, take in elderly parents, go through divorces, or have adult children move out. Every one of these changes affects your tenant file—and some require immediate action. The key is knowing the difference between a change that must be documented and evaluated and one

Chasing recertification paperwork? Here's your step-by-step escalation guide with program-specific consequences. 📌 Introduction You sent the recertification packet. Then a reminder. Then another one. The deadline is approaching, and the tenant hasn't returned a single piece of paper. Unreturned recertification paperwork is one of the most frustrating challenges site staff face. But how you handle it matters—for your compliance, your documentation, and potentially the tenant'

A Site-Level Walkthrough State agency audits don’t have to be stressful. Here’s what to expect — and how to prepare at the site level. Introduction “The state is coming for an audit.” Few sentences cause more anxiety for site staff. But here’s the truth: if compliance is part of your daily operations, a state audit shouldn’t feel like a crisis. It’s a review — not a raid. Let’s walk through what actually happens so you know exactly what to expect. Why Audits Happen 📋 State H

Handling accommodation requests isn’t optional — it’s Fair Housing. Here’s how to get it right every time. Introduction “A tenant asked if they can have a dog in our no-pets property. What do I do?” If you’ve worked in property management for any length of time, you’ve heard some version of this question. And the answer is not as simple as pointing to your pet policy. If the request is related to a disability, you may be looking at a reasonable accommodation request — and ho

Before you finalize that certification, pause. Take one more look. Then double-check these five income sources that consistently slip through the cracks. Introduction Income calculation is the backbone of every certification. Get it right, and your file is audit ready. Miss something, and you're dealing with findings, corrective action plans, and potentially incorrect eligibility determinations. After reviewing files across Section 8, LIHTC, HOME, and Rural Development proper

Introduction It happens every recertification season: a tenant's income has gone up—sometimes way up—and now your compliance team is scrambling. Are they still eligible? Do they have to move? Can you still count the unit? The answer depends on how far over the limit they are, and whether you follow the right steps afterward. LIHTC has a specific framework for handling over-income tenants, anchored by the 140% rule and the Available Unit Rule . Get it right, and the unit st

Introduction The gross rent floor is one of LIHTC's most important protections for property owners—yet it's also one of the most misunderstood provisions in the program. In simple terms, the gross rent floor locks in a minimum level for your maximum allowable rents, protecting you from future income limit decreases that could otherwise squeeze your revenue. But the protection only works if you make the right election at the right time. Let's break it down. What Is the Gross R

Introduction "Can I just use the bank statement?" It's one of the most common questions I hear from site staff. And thanks to HOTMA (Housing Opportunity Through Modernization Act), the answer just got a lot simpler for many households. HOTMA raised the asset threshold from $5,000 to $50,000 and introduced streamlined verification options—including the ability to use a single bank statement in many cases. But the rules still vary by program, and knowing when you can simplify v

Introduction Of all the income types we encounter in affordable housing, self-employment income causes the most confusion. Unlike W-2 wages with neat pay stubs and employer verifications, self-employment requires us to interpret tax returns, understand business expenses, and project future income. Let's break it down step by step. What Qualifies as Self-Employment Income? Self-employment income includes any earnings from work where the individual is not an employee. Common ex