Topic: What do you find is the biggest difference of managing Low Income Housing Tax Credit (LIHTC) properties or Full rent properties?

What do you find is the biggest difference of managing Low Income Housing Tax Credit (LIHTC) properties or Full rent properties?

The paperwork

LIHTC is more paperwork I know .. :) it is where I started my career lol . oh the mountains of paperwork .. and inspections ..

Rose Gallifrey me too. The nice thing about starting with LIHTC is that you are well groomed in organization and laws.

So true I worked with a housing authority in the beginning and worked between two states they served.

Definitely the paperwork!

Paperwork is horrendous

Some days I think I would rather go back to the paperwork mountain that have a owner who doesn't care. I don't think I should have to fight 2 years for a roof or a month or more for a fridge/oven...

Sometimes... only sometimes do I think this lol

Pens. Its all about the pens!!

I just wrapped all my pens with flowers so they will quit stealing them lol ..

Mentality

Paperwork and inspections.

Set asides, applicable fraction, verifications of income and assets, annual recertification, physical and file audits. Waitlist and strong adherence to the TSP and eligibility.

I do all of the above except Set asides, applicable fraction, currently at our property.

Rose Gallifrey excellent take a look at the 4350 for guidance specifically chapter 3 and 5. The 8823 and internal revenue code section 42 will provide additional guidance as well for the LIHTC program. Best wishes.

Thank you, I am trying to broaden my horizons :)

It all ties back to the paperwork...

Paperwork and people not giving AF. Worse situation is having a property with both types of renters at the same property

Marketing

I have to say, paperwork aside.. it's housing people that typically don't have access to housing. Working LIHTC was extremely rewarding and meaningful for me! Have strong lease enforcement game, and it's so worth it. Just wait until you move in the household that came from a shelter. #gamechanger

Paperwork is THE WORST! And a super tight budget.

I am not sure I can get any tighter of a budget that I have at my current property....

I am having to hire to paint our buildings - 2 stories and about 20 units a building -- for $500 a building. I currently have a homeless man with a W2 who may be getting the job *sigh*

I LOVED the paperwork and all of the math involved! It kept me busy and I loved getting my recert waivers back in the day. Conventional properties just bored me after that. There was no real challenge.

I have done both and am currently doing compliance for LIHTC. If you have a good compliance staff that helps with all the nasty paperwork and applicable fractions, etc. Affordable housing has been very rewarding.

I’ve only ever briefly worked conventional. I always purposely seek positions in affordable housing. Conventional housing just isn’t nearly as rewarding.

I love being able to provide adequate housing to those who typically get left behind. Those who aren’t poor enough to get social services, yet not in a financial position to be able to live comfortably without assistance of some sort. The paperwork is easy. I don’t mind inspections and audits. The most issues I’ve encountered pertaining to “mindset” come from employees who mistreat people with low income.

Endless paperwork with lower wages is the biggest difference when you work tax credit.

This is weird, I have been paid more doing low income than normal rent ups ... maybe it is the companies I have been working for...

Compliance

Governmental paperwork and requirements and getting paid in a timely manner.

You kill tons of trees!

Isn't that the truth. i am trying to get the owners I am with now to get with the digital and stop killing trees ... lol

Rose Gallifrey I think that you still have to have wet signatures. We use Blue Moon, but we can't use esignatures for the affordable. Sucks.

I prefer wet signatures .. Even if I E-sign a lease I have them sign the main lease page with their wet... I am odd like that I also have them sign the "proof of E-signature page as well.

Your budget.

You drink more with Tax Credits

10 times the work for same size staff as conventional sucks!!

Paperwork for sure and many inspections.

Definitely the reporting and paperwork!!

More Rewarding helping someone have a home that otherwise they could not afford and like everyone says paperwork -

The People who Manage the Communities is the difference, knowing your clientele and their needs is the only real difference. And not to be rude its referred as Market Rent or Conventional

LOL...oh so true. I actually manage Section 8, which has a ton more paperwork than Tax Credit. I Liked Tax Credit better. But it is not even the paperwork so much. I hate the
#1) tiny budget we have to work with
#2) mediocre salaries
#3) constant inspections (we have a min of 4 per year and as many as 7 a year if the state/feds come in)
#4)difficulty in finding anyone who can pass the credit and criminal background checks.
I am lucky in that I am very hands on with my residents so I do not have many issues with them (rarely do we have the police here and rarely do we have any drugs issues or crime). But we also do not get very many applications because we are so "out there" in the boonies. When we do have openings it is very difficult to fill then sometimes.

LIHTC properties have a smaller margin for those that meet the specific guidelines of the program. The challenge, as rental rates get closer to the MAX RENTS, is to get candidates that meet the criteria.

The difference between an Tax Credit property and Conventional Property is the intake process during application, based on my experience. Tax Credit property clientele does go through a very lengthy process before getting approval; let alone the waiting period is longer. I would like to know what are other's experience are like as well.

MF vs HTC

Conventional requirements are based on your owner, county, city and state Landlord Tenant Laws.
Very easy, quick leasing and sales and if your market will bear the rents..... credit/criminal/rental history checks are done and you verify they can afford the 3x's the rent. Boom sign lease move in. renewals are done on your timeline.


HTC requirements are based on your State Application for credits and your development types of funding. If you are using multiple financing then your Cost Certification and 8609 filings are the defining moment for HTC projects. Your applicable fraction on your project determines your income limits and your rent limits for your MSP. Marketing begins before you even have a single COC or unit to show. Fair housing laws and HUD rules apply to all prospects, vendors, maintenance and owners.....this is where the fun begins.
determine which unit has what rent and income limits, find an income qualified prospect that can afford the rents, begin the leasing paperwork , prove ALL forms of Income (HUD 4350 chapters 3 and 5, appendix A-z rules apply to paperwork requirements), 23 to 50 documents that prove income and eligibility, then you can perform the checks for credit/criminal/rental history. calculations are done, document ordering and processing are done and sent to manager, manager reviews and sends to Compliance for approval. This is the 3 days of waiting for onsite staff for the approval for move in. Sometimes this is a 2 to 3 day back and forth process. Approval received for move in. Then you get to sign the lease for the specific income eligible apartment that Household was approved for. Sign the lease 8 pages plus 5 or 6 addenda for the parking,laundry,pool and community rules, pet addendums and then the certification of income eligibility. NOW you can move the person in.

Affordable housing will either make you a professional housing associate, or it will sending you packing, running for wine and a different job.... OH and your budgets are non existent.

This from a 25 year multifamily and Affordable Housing credentialed professional.