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Stay within Maximum Allowable Rent When Prorating Move-in
Dec 18, 2008
Q I manage a tax credit site and usually charge households a monthly rent of $930 as the maximum allowable rent. But recently, a broker used $940 as the basis for prorating a mid-month move-in's rent. Is this a violation?
A No, says affordable housing consultant Elizabeth Moreland, an expert in the low-income housing tax credit (LIHTC) program and HUD rules. The prorated rent may have been based on a higher number but the household didn’t pay more than the maximum gross rent at your LIHTC site.
But be prepared to be asked about it if your rent roll is audited because, at least on paper, this particular household started out at a higher rate than others at the site, she adds.
Source: Elizabeth Moreland, Elizabeth Moreland Consulting Services, Inc.
A No, says affordable housing consultant Elizabeth Moreland, an expert in the low-income housing tax credit (LIHTC) program and HUD rules. The prorated rent may have been based on a higher number but the household didn’t pay more than the maximum gross rent at your LIHTC site.
But be prepared to be asked about it if your rent roll is audited because, at least on paper, this particular household started out at a higher rate than others at the site, she adds.
Source: Elizabeth Moreland, Elizabeth Moreland Consulting Services, Inc.
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