What is the standard for income verification in LIHTC?

The standard for income verification in the Low-Income Housing Tax Credit (LIHTC) program is determined by the State Housing Finance Agency (SHFA). This approach allows each state to establish its own criteria for what constitutes sufficient income verification, adapting to the specific circumstances and needs of the state's residents.

Under LIHTC regulations, the SHFA sets guidelines to ensure that the income levels of applicants are valid and that the housing assistance reaches those who genuinely qualify as low-income. This responsibility ensures a tailored approach that considers local economic conditions, housing market dynamics, and demographic data. By relying on each state's discretion, the program maintains flexibility and responsiveness to unique local challenges, while still adhering to overarching federal requirements.

Federal guidelines exist and provide a framework for LIHTC implementation, but they do not dictate the specific methods of income verification, which is why a uniform national standard or a state legislative standard is not applicable in this context.