To determine if your lease agreement includes Low-Income Housing Tax Credit (LIHTC) provisions, follow these steps:
Check Lease Clauses
Review your lease for explicit references to income restrictions, rent limitations, or annual recertification requirements linked to federal tax credits. LIHTC agreements typically include clauses requiring:
- Income certification using third-party verification (e.g., pay stubs, employer letters).
- Annual recertification tied to the lease anniversary date, with verifications dated within 120 days of the lease start.
- Rent limits based on area median income (AMI) percentages.
Verify Property Compliance
- Ask the property manager directly if the unit is part of an LIHTC program. Federal rules require them to disclose this.
- Confirm state participation: In Washington, for example, LIHTC properties must adhere to strict income/rent documentation rules, while Illinois’ LIHTC Manual outlines similar verification protocols.
Review Documentation
- Initial certification paperwork (provided at move-in) should reference LIHTC compliance.
- Recertification notices (sent annually) will reiterate tax credit requirements.
If uncertain, contact your local housing authority or a tenant rights organization (e.g., Tenants Union of Washington State) for assistance.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-i-verify-if-my-lease-agreement-includes-the-tax-credit/
