Physical Inspections Reveal Common Non-Compliance Problems

June 11, 2009
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IRS Section 42 requires that LIHTC units be maintained in a habitable condition and in a rent-ready state. Therefore, as a service to property owners and managers, the Indiana Housing & Community Development Authority (IHCDA) issued a memo listing some of the most common physical inspection non-compliance issues it identified during 2008.

The memo broke the information out into two lists: inspections conducted by a third-party inspection and problems found by IHCDA pre-8609 inspection reports. Among some of the problems found by a third-party inspector were:

  • Fogged thermo pane windows
  • Missing/damaged windows and window screens
  • Smoke detectors missing or missing batteries
  • Mold/mildew present
  • Drives/parking areas in need of seal-coating/striping/repairs
  • Inoperable/malfunctioning appliances
  • Loose plumbing fixtures

Among some of the problems found from the IHCDA pre-8609 physical inspection reports were:

  • Screws installed in the clothes dryer exhaust ducts
  • Water heater safety valve piping indirectly connecting to a source of contamination
  • Bathroom moisture exhaust fans inoperable and/or disconnected
  • Fire-rated doors propped open or would not close fully and latch
  • Flammable storage cabinets not being electrically bonded/grounded
  • Loose/worn out electrical switches