Dos & Don'ts

Dos & Don'ts

Get Signed Agreement When Taking Deposits from Applicants

August 31, 2023    

Reduce the risk of a lawsuit based on an application misunderstanding.


Don't Use ChatGPT for Marketing Purposes

July 28, 2023    

Like other real estate businesses, you may be using ChatGPT, Bard, Bing, and other generative AI products, a.k.a. chatbots, for marketing purposes, such as developing advertising strategies, analyzing housing markets, and generating property listings, ads, social media posts, and other marketing...

Consider Subsidy When Screening Section 8 Applicants

July 28, 2023    

Make sure you take into account the Section 8 subsidy in determining a Section 8 voucher holder’s ability to pay rent. If your site requires applicants to have a minimum income level, don’t let this policy improperly reject voucher holders who don’t meet your site’s...

Check with State Monitoring Agency Before Charging Rent on Employee Unit

September 25, 2019    

If you have a manager’s unit as part of your original allocation of credits, the manager’s unit is not a considered an LIHTC unit. But it was included in eligible basis, so it’s more akin to common space.

Don't Consider Household Income with Live-In Aide Requests

September 25, 2019    

Approving a live-in aide, if needed by a disabled household, is an example of a reasonable accommodation. When considering a household’ request for a live-in aide to accommodate a household member’ disability, don’t be concerned that the aide’s occupancy in a low-income...

Don't Require Applicant to Be Physically Able to Keep Unit Clean

September 25, 2019    

Though you can require that an applicant’s unit be kept clean and free of health hazards, you can’t require that the applicant be physically able to keep the unit in such condition himself. It doesn’t matter whether the applicant himself is physically able to clean or maintain...

Count Unborn Children as Household Members

September 24, 2019    

The HUD Handbook requires you to count household members’ unborn children as part of a low-income household for occupancy and income purposes [Handbook 4350.3, par. 3-6(E)(4)(d)]. You count a pregnant household member as two people, and use the income limits for a larger household size....

Follow Three Dos & Don’ts When Talking to Prospects

August 30, 2018    

Staff members at tax credit sites can get into trouble when talking with prospects. Any false assurances, improper assumptions, or inappropriate statements could trigger noncompliance and a possible fair housing complaint or lawsuit. To avoid problems, here are three Dos & Don’ts you...

Include Unrelated Household Members When Calculating Household Income

June 30, 2017    

When you calculate a household’s income to determine if it’s qualified, total the income of all the household’s members, even if they’re not related. If you make the mistake of counting members’ incomes separately, you’re likely to determine that their...

Don't Include Approved Rent Subsidies When Calculating Household Income and Rent

June 30, 2017    

Don’t include the value of any approved federal or state rent subsidies the owner gets for a household when you calculate the household’s income and rent. If you do, you may charge the household too much rent. Or you may lose out on renting to a qualified household because you...

Verify Every Source of Household Income

June 30, 2017    

Make sure that you verify every source of income a household reports. A household isn’t qualified unless you have the verifications to prove it. So if you accept a household without verifying all its income, the owner won’t be able to claim tax credits for the household’s unit...

Don't Perform Full Recertifications When They’re Not Necessary

March 28, 2013    

The Housing and Economic Recovery Act of 2008 (HERA) eliminated the annual income recertification requirement for 100 percent buildings. Each state agency, however, may opt to tighten the rule and impose its own recertification requirements. In addition, some owners may still complete annual...