Compliance Services Built for LIHTC Properties

The lease-up phase is the most critical — and most error-prone — period in the life of a LIHTC property. Mistakes made during initial certifications can jeopardize your tax credit allocation, trigger investor concerns, and create costly corrective action requirements with your state housing finance agency.

Compliant Client provides hands-on lease-up support to ensure every initial tenant file is complete, accurate, and fully compliant with Section 42 requirements before move-in. We work directly with your leasing team to verify income documentation, calculate household income using HUD-approved methods, confirm student status eligibility, and ensure set-aside requirements are met from day one.

Our lease-up support includes review of all income verification documents (pay stubs, tax returns, employer verifications, Social Security award letters, and asset documentation), calculation of anticipated annual income, and confirmation that each household meets the applicable income limit for your property's set-aside elections.

We also assist with TCAC compliance requirements specific to California, including review of Regulatory Agreement obligations, income and rent limit schedules, and any special set-aside requirements tied to your tax credit award.

Tenant file accuracy is the foundation of LIHTC compliance. A single miscalculated income figure or missing verification document can result in a finding during a state agency monitoring visit — and findings that go uncorrected can escalate to credit recapture. Compliant Client provides meticulous file reviews to catch issues before they become problems.

Our file review service covers every element of the initial certification package: income verification documents, asset documentation and calculation, student status determination, household composition, applicable income limits, and Tenant Income Certification (TIC) accuracy. We review files against the applicable income limits for your property's set-aside elections and confirm that all required signatures and dates are present.

For annual recertifications, we review updated income and asset documentation, confirm continued eligibility under the applicable income limits, and verify that rent charged does not exceed the applicable tax credit rent limits. We flag any discrepancies and provide clear guidance on corrective action before files are finalized.

We are experienced with California-specific requirements including TCAC's Regulatory Agreement provisions, HOME program layering requirements, and the documentation standards expected during TCAC monitoring visits. Our file reviews are designed to meet the scrutiny of a state agency audit.