IRS Issues Final Regulations on Compliance Monitoring

On February 26, 2019, the Internal Revenue Service issued final regulations regarding compliance monitoring. Under the new regulations, state housing finance agencies may not provide more than a 15-day notice prior to a file review or Uniform Physical Condition Standards inspection. In addition, the regulations change the number of units that must be reviewed and inspected. Under the new regulations, it appears state housing finance agencies will be required to review and inspect more units (in some cases, significantly more) at projects that have not elected to group buildings into one or more multiple building projects.

There will be a very short turnaround time provided to submit the information needed by the Compliance Division to monitor and inspect your property. At all times, you are advised to have your Unit Status Report correctly updated, documentation to support your utility allowance readily available, a current Affirmative Fair Housing Marketing Plan, up-to-date Tenant Selection Criteria, and if applicable, your developments 8609(s), documentation regarding social services, and information about HUB or non-profit ownership and participation.

The new regulations have been posted to our website and can be found on this page: https://www.tdhca.state.tx.us/pmcomp/manuals-rules-htc.htm

If you have any questions, please contact Patricia Murphy, Director of Compliance, at 512.475.3140 or by email at patricia.murphy@tdhca.state.tx.us