The Benefit of Having a Seasoned LIHTC Compliance Professional Reviewing Your Files!

For property management companies of affordable housing communities, the benefit of having a seasoned LIHTC compliance professional reviewing your files is clear: it streamlines the file review process, reduces compliance risks, and ensures accuracy in meeting low-income housing tax credit (LIHTC) requirements—all while saving time and money.

From understanding complex regulations to providing proactive advice on maximizing tax credits and maintaining compliance standards, you’ll quickly realize the benefit of having a seasoned LIHTC compliance professional reviewing your files. Read on to learn more about how this process works.

Streamlined Process

If you’re a property management company of affordable housing communities, you already have a lot on your plate, and completing LIHTC file reviews can be time consuming and stressful, so the benefit of having a seasoned LIHTC compliance professional review your files and help you develop a LIHTC program can help streamline the process, saving you time and money in the long run!

A knowledgeable compliance expert is familiar with your state’s verification standards. They ensure that paperwork is completed correctly from the start by quickly identifying issues that need to be addressed before submission, eliminating costly delays or rejections due to errors or omissions.

Someone who understands all aspects of LIHTC housing compliance can also provide valuable advice on how best to structure future documents and ensure they meet all applicable standards and regulations.

Expertise

The benefit of having a seasoned LIHTC compliance professional reviewing your files is the experience they bring with them. This expertise ensures that your property management company stays up-to-date with changes in regulations, as well as any new laws or procedures that may be put into place.

By having an experienced professional who understands both federal and state guidelines related to affordable housing communities, you can avoid common LIHTC compliance pitfalls and rest easy knowing that your files are being properly reviewed and approved according to up-to-date industry standards.

As an added bonus, their expertise allows them to identify areas where improvements could be made in existing processes or systems used by your organization and offer overarching compliance action steps to prevent significant difficulties in the future.

Cost Savings

Here’s the short of it: a seasoned LIHTC compliance professional helps you avoid costly mistakes or penalties due to non-compliance.

For example, if a file does not meet certain requirements, such as income limits for tenants or rent restrictions for units, it could lead to fines from regulatory agencies. An LIHTC compliance professional will review tenant files and identify these issues before they become problems.

Additionally, an experienced LIHTC compliance professional can provide preferred compliance solutions when it comes to filing paperwork correctly and efficiently, making sure that the next annual review goes smoothly!

Peace of Mind

The process of filing for Low Income Housing Tax Credits (LIHTC) can be complicated and time consuming. A third party file review by a knowledgeable professional ensures accuracy. This includes reviewing tenant file inspection, rent calculations, utility allowances, tenant eligibility criteria, tax credit applications, as well as other related documents to ensure they comply with IRS rules and regulations and state’s specific verification requirements.

Having a qualified individual examine these important documents gives property managers greater confidence in their decisions when it comes to managing their affordable housing community’s finances or making changes to rental rates or tenant qualifications. Knowing that someone has double checked every detail eliminates any potential errors which could lead to costly fines or penalties down the road if not corrected quickly enough.

Need Help Adhering to LIHTC Compliance?

With over 20 years of experience in affordable housing compliance, we here at Sanchez Compliance & Consulting seen property managers fall into all sorts LIHTC compliance pitfalls – from missing their state’s specific verification requirements to mismanagement of tenant files and failing to complete LIHTC compliance trainings.

That’s why I’ve developed my own robust property compliance system to help properties review tenant files, conduct annual reviews, offer overarching compliance action steps and preferred compliance solutions, and prevent significant difficulties that arise from non-compliance.

By providing ongoing access to and conductiong ongoing training for your team, I’ll help you avoid property compliance pitfalls and develope a LIHTC program that works for you!

Whether you’re looking for General Consulting, File Review, Utility Allowance, Leasing & Occupancy, or Full Service Compliance, I am here and ready to help you!

Schedule a Compliance Evaluation with me today if you’re ready to get on the right track.

FAQs in Relation to The Benefit of Having a Seasoned LIHTC Compliance Professional Reviewing Your Files

What is a HUD compliance review?

A HUD compliance review is a comprehensive assessment of an affordable housing community’s adherence to the rules and regulations set forth by the U.S. Department of Housing and Urban Development (HUD). This review covers all aspects of a property, including tenant eligibility, rent calculations, occupancy requirements, financial management practices, physical condition standards, and more.

How do investors benefit from LIHTC?

There are several ways that investors benefit from LIHTC.

First, they receive a dollar-for-dollar reduction in their federal income tax liability for each year of the credit period. Second, LIHTC investments can provide investors with an attractive rate of return due to the low-cost basis and predictable cash flow associated with these investments. Finally, LIHTC investments are considered safe since they are backed by government subsidies that ensure a steady stream of rental income over time.

By completing third party file reviews for LIHTC communities, property management companies help investors maximize their returns on these lucrative investments while also helping to create more affordable housing options for those who need it most.

What does compliance mean in housing?

Compliance in housing refers to the adherence of laws, regulations, and standards that are designed to ensure fair and equitable access to safe and affordable housing. This includes compliance with federal, state, and local statutes; industry best practices; and internal policies.

Compliance helps protect tenants from discrimination or other unfair treatment while also protecting landlords from liability for non-compliance.

What happens to developers who have received low-income housing tax credits if their buildings fall out of compliance?

If a building that has received low-income housing tax credits falls out of compliance, the developer may be subject to penalties or other enforcement actions. Depending on the severity of the non-compliance, this could include fines, repayment of funds, suspension or termination of tax credits, and/or additional requirements imposed by state agencies. In some cases, developers may even face criminal prosecution for violations related to their LIHTC properties.

About Jeanie Sanchez and Sanchez Compliance & Consulting

I’m Juanita (Jeanie), and I provide compliance solutions for affordable housing providers. I specialize in managing file review process and backup; delivering greater security, reducing redundancy, and increasing staff understanding
More technically, I help management agents in applying Section 42 and State Agency requirements, analyze IRS Forms 8609’s and provide guidance on the Multi Building Election, Utility Allowance review and guidance, Pre-State Agency Audit preparation, and Post-State Agency Audit response.I primarily partner with Property Management Companies including:• Owners/Developers• Property Management Companies • Syndicators/Investors• Compliance Managers/Departments• Regional Managers/Onsite Management TeamsWhen you partner with me (AKA: Sanchez Compliance & Consulting) you get 20+ years of industry experience and the most efficient and consistent compliance solutions that Property Management Professionals are looking for right now. Our primary goal is to minimize your organizations exposure to possible non-compliance. We are a part of the BBB, and a proud MWBE. Contact me today and let’s get started!