The Most Reliable Compliance Monitoring

A Utility Allowance is an estimate of the cost of monthly utilities for each unit type in an affordable housing community. If a household pays utilities, such as electric, gas, or water, this amount must be deducted from the maximum gross rent. Total rent payments include both the cost to rent the unit minus a reasonable amount for paid utilities.  

Noncompliance findings put the property owner at risk of losing valuable tax credits, repayment of program funds, or other repercussions that could affect future operation for the property.

Income Averaging is a program that allows affordable housing owners the option to provide housing to households with incomes of up to 80 percent of the Area Median Gross Income (AMGI) and qualify them as affordable housing units.This is only possible if the average income and rent limits in the property remain at 60 percent or less of the AMGI. The advantage of Income Averaging grants property owners internal cross-subsidization within a property. This means the ability to qualify households with slightly higher incomes for affordable housing. These households with higher rents help offset household units with lower rents, thus stabilizing financial success for affordable housing communities.

There are three primary areas in the LIHTC program that are vital to its success:
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1. Keep income limits (rent to income-qualified households) within federal and state guidelines.
2. Keep rents below the required limits.
3. Keep your property “decent, safe, sanitary, and in good repair.”

An income limit in the affordable housing program is the maximum income amount a household can earn to qualify to receive housing assistance. Figures are determined by a city or county’s Area Median Gross Income (AMGI) and the number of persons who live in the household. The AMGI varies by city, county, and regulations set forth by the state housing agency.