What is a common requirement for LIHTC income verification?

In the context of the Low-Income Housing Tax Credit (LIHTC) program, verifying tenant income is essential to ensure compliance with program regulations. The correct answer highlights the importance of adhering to specific agency standards for income verification.

Under LIHTC guidelines, agencies have established protocols that outline how income should be verified for tenants applying for affordable housing. This can include a variety of methods such as third-party verification, examination of pay stubs, and obtaining official documentation such as Social Security statements. The focus is on consistent and standardized procedures to ensure that income is accurately reported and verified according to the requirements set forth by the administering agency.

This approach not only protects the integrity of the LIHTC program but also provides a clear framework for property owners and managers to follow, ensuring that all income is verified in a manner that meets regulatory expectations. The emphasis on agency standards allows for flexibility in verification methods while maintaining compliance across different jurisdictions.

In contrast, relying solely on audits by the IRS or just tax return submissions would not provide a comprehensive picture of a tenant’s current income, while third-party verification alone may not adhere to the standardized processes required by the agency. Hence, verification according to agency standards is the most suitable and comprehensive approach in this context.