The National Council of State Housing Agencies (NCSHA) sent a letter to the Internal Revenue Service urging it to rescind its recent amendments to the LIHTC compliance monitoring regulations. NCSHA argues that the increased unit sample size would “impose an immense new regulatory burden” and “any benefit the increase in monitoring would provide is far outweighed by the considerable strain this would put on Housing Credit agencies, owners, tenants and affordable housing resources.” NCSHA offers several alternatives, including:
- Working with state agencies, through NCSHA, to develop an evidence-based process for determining the appropriate unit sample size(s) applicable to Housing Credit compliance, and relying on the expertise of state agencies in the determination of when additional units must be monitored;
- Basing compliance monitoring sample requirements on the total number of units in a property with a common owner and plan of financing, regardless of the owner’s 8b election; and
- Allowing states to conduct fewer tenant file reviews than physical inspections.
