Housing Credit Compliance

Functions of the Division

The Multifamily Programs Division is responsible for conducting annual reviews of properties awarded low-income housing credits including tri-annual on-site reviews and physical inspections of the property. Owners who receive an allocation of low-income housing credits must maintain compliance with federal and state program requirements for at least 30 years. To determine compliance, owners submit annual self certifications of compliance and tenant household information including income, rent, and demographic information using THDA’s Housing Credit Management Software (HCMS). The deadline for the submission of annual compliance data is February 15 or the next business day, if February 15th is a nonbusiness day.

Compliance Coordinators* manage housing credit portfolios and work with owners and management companies to schedule on-site reviews and physical inspections. If noncompliance is noted, a correction period of no less than 90 days is afforded owners. After that period, noncompliance is reported to the Internal Revenue Service (“IRS”) using Form 8823: Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition. Noncompliance is reported and cured using the methodology described in the 8823 Guidebook issued by the IRS.

Property management companies of low-income housing credit properties are required to meet THDA’s standards for certification. Information on the Property Management Certification process is included in the Certified Property Management Process link found under Compliance Bulletins, Notices or Letters.

The Division offers Compliance Training for owners, managers, and dedicated compliance personnel of housing credit properties. The training is offered several times per year throughout the state on a queuing basis. HCMS training is offered annually at the end of the calendar year. Training information is found in the LIHC Compliance Training Box to the right of the webpage.

As allowed by the IRS and noted in the 8823 Guidebook, THDA mandates the use of required forms which ensure consistency and compliance with IRC Section 42 and state requirements. The required forms can be found below under Compliance Forms.

Compliance Forms

Compliance Bulletins, Notices or Letters

Housing Credit Management System (HCMS)

For more information, please contact Chuck O'Donnell Compliance Manager of Multifamily Programs