When it comes to housing, many people are in a bind. Their incomes aren’t high enough to afford safe, well-maintained homes, but there just isn’t enough public housing to go around, and Housing Choice Vouchers are hard to come by. Prospective residents may have some understanding of other federal housing programs, such as Public Housing or Section 8, but they may not be aware of how the LIHTC program differs.

To help you explain the LIHTC program to prospective residents, we’ve prepared a Model Memo: Introduction to LIHTC Housing for Prospective Renters. It covers frequently asked questions (FAQ) on applying and qualifying for LIHTC sties. With a general understanding of the program, prospective residents will be better prepared to proceed with their applications and determine whether LIHTC housing is right for them.

How FAQ Helps

There are many benefits to presenting the LIHTC program upfront with a FAQ to prospective residents and leasing staff. With accessible information, prospective residents gain confidence to begin and work through the application process.

The FAQ will let them know whether or not the LIHTC housing suits their situation and cuts down on time and energy in applying for sites they wouldn’t qualify for. Applicants feel empowered when there’s transparency around requirements, which contributes to a positive overall experience if they plan to apply for a unit at your site.

Equally important are the benefits to owners and managers of the LIHTC properties. With upfront answers to such commonly asked questions, the site manager minimizes ineligible applicants and can focus on ones who may possibly qualify. One will also develop better relations with prospective residents by having better communication and reducing misunderstandings or possible disputes. Addressing these topics at the beginning of the process helps ensure compliance with the program regulations.

What FAQ Covers

This FAQ provides an overview of LIHTC basics that may be of high concern to prospective renters. It points out how LIHTC is different from other federal housing programs because of how it determines rent and the fact that it’s operated by private entities and not the government.

Eligibility. Much of the FAQ deals with eligibility criteria. It stipulates that the income limits are what dictate whether a household qualifies for housing under LIHTC. Other possible affecting conditions might be the number of household members, their credit history, criminal backgrounds, to name a few. There is also information on eligibility of students; about special consideration seniors may have; and other priority categories such as recent veterans or youth from foster homes.

Calculating rents. The FAQ emphasizes that rents are not derived based on the income of a specific tenant but rather by unit size and type, along with area median income limits. It goes ahead to address how utility costs are factored in as total housing costs via a utility allowance.

Criminal, credit history. Applicants with criminal or poor credit histories are also provided information. Sites are allowed to screen tenants based on their background, but such decisions must be in compliance with fair housing laws.

VAWA protections. The FAQ highlights protections for vulnerable groups, especially survivors of domestic violence, sexual assault, or stalking. It describes the protections provided under the Violence Against Women Act, ensuring that survivors cannot be denied housing or penalized because of circumstances related to their victimization.