Under what circumstance is verification of assets not required for LIHTC?

Verification of assets is not required for Low-Income Housing Tax Credit (LIHTC) applicants when the combined net assets do not exceed $5,000. This guideline is established to streamline the application process and reduce the administrative burden both for applicants and housing agencies. By eliminating the requirement for verification in cases where total net assets remain below this threshold, it acknowledges that applicants with minimal financial resources are less likely to have significant income derived from those assets. Therefore, this practice focuses on enabling access for lower-income households without complicating the application further with financial verifications that may not impact their eligibility or assistance level.

In contrast, if assets exceed certain limits, the verification process becomes necessary to determine eligibility and the financial status of the applicant accurately. Thorough asset checks are imperative above these thresholds to ensure that all financial resources are adequately accounted for in determining the ability to pay for housing.