Physical Inspections Reveal Common Non-Compliance Problems

IRS Section 42 requires that LIHTC units be maintained in a habitable condition and in a rent-ready state. Therefore, as a service to property owners and managers, the Indiana Housing & Community Development Authority (IHCDA) issued a memo listing some of the most common physical inspection non-compliance issues it identified during 2008.

The memo broke the information out into two lists: inspections conducted by a third-party inspection and problems found by IHCDA pre-8609 inspection reports. Among some of the problems found by a third-party inspector were:

• Fogged thermo pane windows
• Missing/damaged windows and window screens
• Smoke detectors missing or missing batteries
• Mold/mildew present
• Drives/parking areas in need of seal-coating/striping/repairs
• Inoperable/malfunctioning appliances
• Loose plumbing fixtures

Among some of the problems found from the IHCDA pre-8609 physical inspection reports were:

• Screws installed in the clothes dryer exhaust ducts
• Water heater safety valve piping indirectly connecting to a source of contamination
• Bathroom moisture exhaust fans inoperable and/or disconnected
• Fire-rated doors propped open or would not close fully and latch
• Flammable storage cabinets not being electrically bonded/grounded
• Loose/worn out electrical switches