According to section 42 regulations, annual income recertification is not required for which type of LIHTC site?

Annual income recertification is not required for 100% Low-Income Housing Tax Credit (LIHTC) sites. This is because properties that designate all of their units under the LIHTC program as reserved for low-income tenants generally fall under the criteria that allow them to skip annual recertifications.

The rationale behind this exemption is linked to the program’s aim to provide long-term affordability and stability for tenants in these properties. For 100% LIHTC sites, the residents are typically expected to be low-income, and the regulatory framework assumes that maintaining the affordability does not necessitate the ongoing review of income, as the entire project is dedicated to low-income residents.

In contrast, properties with lower percentages of LIHTC units, such as those at 50% or 70%, require annual income recertification to ensure compliance with income limits and maintain eligibility for tax credits. This process helps confirm that mixed-income projects still serve their intended populations and adhere to the required regulations.