1.7.3. LIHTC Unit Sampling

For compliance reviews for the Low Income Housing Tax Credit (LIHTC) Program, unit sampling is governed by – Treas. Reg. 1.42-5.

(B) Number of low-income units. The Agency must conduct on-site inspections and low-income certification reviews of not fewer than the minimum number of low-income units for the corresponding number of low-income units in the low-income housing project set forth in the table to paragraph ©(2)(iii).

A proposed rule was introduced in 2020, so technically not amended yet, but the proposed rule states,” These regulations are proposed to apply beginning after the date these regulations are published as final regulations in the Federal Register. However, an Agency may rely on these proposed regulations beginning on February 26, 2019, until December 31 of the calendar year following the year that contains the date these regulations are published as final regulations in the Federal Register.

The minimum number of low-income units that must be included in the random samples on which an Agency conducts physical inspections or low-income certification review is the lesser of the applicable REAC number or 20 percent of the low-income units in the project, rounded up to the next whole number.

While the sampling chart for HUD REAC NSPIRE inspections has been updated, the Low Income Housing Tax Credit (LIHTC) Program is still using the following chart in the treasury regulation. Sampling shall be the lesser of 20% of the total units or the number in the following chart.