According to section 42 regulations, annual income recertification is not required for which type of LIHTC site?

According to section 42 regulations, annual income recertification is not required for which type of LIHTC site?

• A. 50% LIHTC sites
• B. 70% LIHTC sites
• C. 100% LIHTC sites
• D. Any percentage of LIHTC sites

Answer: (C)

Annual income recertification is not required for 100% Low-Income Housing Tax Credit (LIHTC) sites. This is because properties that designate all of their units under the LIHTC program as reserved for low-income tenants generally fall under the criteria that allow them to skip annual recertifications. The rationale behind this exemption is linked to the program’s aim to provide long-term affordability and stability for tenants in these properties. For 100% LIHTC sites, the residents are typically expected to be low-income, and the regulatory framework assumes that maintaining the affordability does not necessitate the ongoing review of income, as the entire project is dedicated to low-income residents. In contrast, properties with lower percentages of LIHTC units, such as those at 50% or 70%, require annual income recertification to ensure compliance with income limits and maintain eligibility for tax credits. This process helps confirm that mixed-income projects still serve their intended populations and adhere to the required regulations.

Annual income recertification is not required for 100% Low-Income Housing Tax Credit (LIHTC) sites. This is because properties that designate all of their units under the LIHTC program as reserved for low-income tenants generally fall under the criteria that allow them to skip annual recertifications.

The rationale behind this exemption is linked to the program’s aim to provide long-term affordability and stability for tenants in these properties. For 100% LIHTC sites, the residents are typically expected to be low-income, and the regulatory framework assumes that maintaining the affordability does not necessitate the ongoing review of income, as the entire project is dedicated to low-income residents.

In contrast, properties with lower percentages of LIHTC units, such as those at 50% or 70%, require annual income recertification to ensure compliance with income limits and maintain eligibility for tax credits. This process helps confirm that mixed-income projects still serve their intended populations and adhere to the required regulations.