Which documentation is critical for proving tenant income eligibility for LIHTC properties?

To establish tenant income eligibility for Low-Income Housing Tax Credit (LIHTC) properties, proper income verification documents are essential. These documents validate the income reported by tenants and ensure compliance with income limits established for LIHTC properties. Essential income verification documents typically include pay stubs, tax returns, W-2 forms, or other relevant documents that provide an accurate representation of the tenant's annual income.

While pay stubs and bank statements are important components of income verification, they are not sufficient on their own without being part of a broader suite of proper documentation. Lease agreements and utility bills do not serve the purpose of confirming income; instead, they relate to tenancy and living conditions but do not provide information about the tenant’s financial status or eligibility for the tax credits.

Thus, focusing on the necessity of proper income verification documents highlights the critical role they play in ensuring that tenants meet the income requirements necessary for LIHTC properties.