Which of the following is NOT a consequence of non-compliance with LIHTC requirements?

Non-compliance with Low-Income Housing Tax Credit (LIHTC) requirements can lead to several consequences, each designed to enforce the rules and ensure that developers maintain compliance with the program's goals of providing affordable housing.

Recapture of credits refers to the government reclaiming tax credits that were awarded if a property fails to comply with the LIHTC rules during the compliance period. This is a direct consequence of non-compliance, impacting the financial incentives that property owners received initially.

Fines imposed by the IRS can occur if there are significant violations of tax regulations associated with the LIHTC program. These fines serve as a financial deterrent to ensure that developers adhere strictly to the guidelines established for maintaining their tax benefits.

Penalties associated with extended reporting are also a known consequence. Developers are required to submit regular reports concerning their compliance with the program's restrictions, and failure to do so can lead to penalties that affect their ability to maintain LIHTC status.

In contrast, increased property taxes are not typically a consequence of failing to comply with LIHTC requirements. Property tax assessments are usually based on local property tax laws and not directly tied to adherence to LIHTC program rules. Therefore, while non-compliance can lead to recapture