HUD is launching two pilot programs to test the feasibility of streamlined physical inspections and subsidy layering reviews for projects with low-income housing tax credits and rental assistance.
The pilot programs are the result of an interagency task force involving HUD, the IRS, the Treasury Department, and the Rural Housing Service that has been developing uniform requirements for the LIHTC and other affordable housing programs. The programs are scheduled to be launched in mid-summer in six states.
The initial program will involve testing streamlined physical inspection requirements in order to reduce or eliminate redundant inspections. The program will allow HUD REAC inspections to meet the physical inspection requirements of the LIHTC program for tax credit properties that also have project-based Section 8 assistance.
The second program will examine ways to improve the efficiency of subsidy layering reviews for projects with tax credits and project-based rental assistance.