On-Site Physical Inspections

LIHTC (LOW INCOME HOUSING TAX CREDIT)

ADOH is required by the Internal Revenue Service to inspect Tax Credit properties to ensure that LIHTC buildings and units are suitable for occupancy. Under Treasury Reg. §1.42-5(C)(2)(ii)(B), on-site inspections must be conducted at least once every three years. However, it is possible that a property could be chosen for an on-site physical inspection two or more years in a row. During these physical inspections ADOH assesses whether Tax Credit properties are in safe,decent, sanitary condition and in good repair, according to the Uniform Physical Conditions Standards (UPCS) established by HUD. All findings of non-compliance must be reported to the Internal Revenue Service on IRS Form 8823 whether or not the non-compliance issue is corrected

HOME/HOUSING TRUST FUND

During the required period of affordability, as imposed by the ADOH Declaration of Covenants, Conditions and Restrictions (CC&R), projects must be inspected regularly to ensure that they continue to meet or exceed applicable property standards. ADOH performs on-site inspections of HOME/HTF assisted rental properties to determine compliance with the Uniform Physical Conditions Standards and local code requirements according to the schedule below.

# of Units in project	Inspections required
1-4	Every 3 years
5-25	Every 2 years
26 or more	Annual