Introduction After reviewing thousands of tenant files across Section 8, LIHTC, HOME, and Rural Development properties, I've noticed the same errors appearing again and again. These aren't complex regulatory misinterpretations—they're simple mistakes that can cost your property findings, corrective action plans, and in worst cases, recaptured credits. Here are the five file errors I see auditors' flag most frequently—and exactly how to prevent them. Missing or Expired Third-P

Introduction "Can students live in LIHTC housing?" I get this question constantly, and the answer is almost always: "It depends." The LIHTC student rule is one of the most misunderstood regulations in affordable housing. Some staff automatically reject any household with students. Others don't ask about student status at all. Both approaches create compliance problems. Let's clear up the confusion once and for all. The Basic Rule A household composed ENTIRELY of full-time stu