When Resident Dies and Daughter Doesn't Qualify for Unit

October 12, 2008
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Q I manage a tax credit site, and the daughter of a resident who died recently lived with her in a unit. The daughter was not on the lease. She was listed as a “caregiver” who was not considered for eligibility purposes at move-in. Since her mother died, the daughter does not qualify for a unit. Is it permissible for her to remain in the unit? If I give her a 60-day notice to locate housing elsewhere, will the unit remain qualified under the tax credit program?





A There is nothing in IRS Code Section 42 or the HUD Handbook that indicates the time frame by which a live-in caregiver must vacate a unit, says affordable housing consultant Elizabeth Moreland, an expert in the LIHTC program.


Technically, a caregiver is in the unit to provide supportive services to the resident. As the resident in this case has died, the caregiver’s services are no longer required, and she must vacate the unit. By law, you must provide the former caregiver with a reasonable amount of time to move out. To expedite the move-out, you may want to help her find alternative housing and/or help deal with practical matters about her mother’s burial, although you are not required to do so.


Source: Elizabeth Moreland, Elizabeth Moreland Consulting Services, Inc.