Which of the following is a required step when determining income limits for recertification under LIHTC?

When determining income limits for recertification under the Low-Income Housing Tax Credit (LIHTC) program, it is essential to apply specific guidelines outlined by the U.S. Department of Housing and Urban Development (HUD). Multiplying the current income limit by a factor, such as 1.4, serves as a method to establish the income eligibility threshold for tenants seeking recertification. This adjustment ensures that the income limits remain aligned with the local area median income and allow for a broader assessment of tenant qualifications.

Using a factor like 1.4 is significant in keeping the income limits reflective of the changing economic landscape, providing an updated benchmark for landlords and property managers to assess tenant eligibility. Maintaining accurate and updated income limits directly impacts how many tenants can be served under the LIHTC program, facilitating the overall mission of providing affordable housing.

While options like adjusting for inflation rates, comparing last year’s income limits, and verifying tenant employment status are important components of the broader housing assistance framework, they do not play a direct role in determining the income limits for recertification specifically as outlined by LIHTC requirements. Therefore, multiplying the current income limit is a critical step in the recertification process for ensuring compliance and facilitating accessible affordable housing