Understanding Possible NAU Violations in 100 Percent LIHTC Buildings

Understanding Possible NAU Violations in 100 Percent LIHTC Buildings



The tax credit law allows low-income units to remain qualified even when a household goes over-income. But to maintain the unit’s low-income status, when a household’s income exceeds 140 percent of the income limit (or 170 percent in deep rent-skewed units), you must follow the next available unit (NAU) rule. To do this, you must rent the next available unit of comparable or smaller size in the same building to a qualified low-income household.

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