During the Compliance Period, which entity are LIHTC property owners ultimately accountable to?

During the Compliance Period for Low-Income Housing Tax Credit (LIHTC) properties, property owners are ultimately accountable to the IRS. This accountability stems from the fact that the LIHTC program is a federal tax incentive, and as such, the IRS establishes the regulations that govern how the program operates.

Property owners must adhere to these regulations to maintain their tax credits, including ensuring that the property meets income and rent restrictions for qualified tenants. If a property owner fails to comply with these requirements, they risk losing their tax credits, which can significantly impact the financial viability of their project.

While state housing agencies play a role in overseeing compliance and local governments may have requirements related to zoning and permits, the IRS is the final authority on the enforcement of the tax credit rules. Property management companies assist in day-to-day operations but do not hold ultimate accountability for compliance with IRS regulations.