What aspect of LIHTC properties is verified through compliance audits?

The aspect of LIHTC (Low-Income Housing Tax Credit) properties that is verified through compliance audits is the accuracy of income calculations for tenants. Compliance audits are conducted to ensure that the income of tenants residing in LIHTC properties aligns with the eligibility requirements set forth by the program. This is crucial because LIHTC properties are intended to serve low-income households, and accurate income assessments determine eligibility for the tax credits.

By confirming the accuracy of income calculations, compliance audits help maintain the integrity of the LIHTC program and ensure that the tax credits are appropriately allocated to properties that genuinely serve low-income residents. It is essential for property owners and managers to comply with these regulations to continue benefiting from the incentives provided by the LIHTC program.

While other aspects such as the pricing of rental units, the building's physical condition, and the intent of the development project are important considerations in the overall management and operation of LIHTC properties, they are not the primary focus of compliance audits. These audits specifically target tenant income verification to enforce compliance with federal and state guidelines associated with the Low-Income Housing Tax Credit program.