Owners of dual-funded properties
Properties with both a LIHTC regulatory agreement and a HAP or PBV contract answer to a state agency and to HUD, on different calendars.
Layered compliance
HUD and LIHTC layered compliance support.
When a unit carries both a tax credit restriction and a HUD subsidy contract, the two rule sets do not merge. Altus Compliance reviews layered files against every applicable program at once, so a file that satisfies one funder does not create a finding with another.
Layered files
Programs covered
- LIHTC (Section 42)
- HUD Multifamily (Handbook 4350.3)
- Project-Based Rental Assistance
- PBV
- RAD
Nationwide engagements
Who this is for
Built for the teams carrying the compliance risk.
Management companies inheriting layered portfolios
Acquisitions and management transitions frequently surface files that were only ever reviewed against one program.
Compliance directors with mixed portfolios
Internal teams often have depth in one program and thinner coverage in the other, which is where layered findings originate.
Problems it solves
What this work is actually for.
- Files reviewed against Section 42 but never against HUD Handbook requirements
- Two certification calendars producing conflicting effective dates
- Different income and asset treatment applied inconsistently across the same household
- Rent calculated correctly for the subsidy but exceeding the tax credit limit
- Utility allowance sources that differ between programs
- Student rules and household composition treated under only one rule set
- HOTMA changes applied on one program timeline and not the other
- Findings from a state agency review that trigger HUD exposure and vice versa
Programs covered
Every major affordable housing program.
Altus Compliance works nationwide and layers program requirements the way funders do, so a property with multiple funding sources is reviewed against all of them.
LIHTC (Section 42)HUD Multifamily (Handbook 4350.3)Project-Based Rental AssistancePBVRADHOMEBondSection 202 and Section 811
What we review
One file, reviewed against every program that governs it.
- Program inventory for the property and for each unit and household
- Income determination under both Section 42 and HUD rules, with differences documented
- Asset treatment and imputed income under each applicable rule set
- Certification and recertification calendars, including effective date alignment
- Rent reasonableness, gross rent limits, and subsidy rent calculation
- Utility allowance source and application per program
- Student status, household composition, and unit transfer treatment
- Lease documents, HUD model lease, and LIHTC lease addendum consistency
- EIV and TRACS documentation for the subsidized side of the file
- HOTMA implementation status across both program timelines
The process
How the engagement runs.
- Step 1
Program mapping
We document every funding source, regulatory agreement, and contract that touches the property, down to unit level where layering is partial.
- Step 2
Layered file review
Each sampled file is reviewed against all applicable rule sets, and conflicts between them are identified explicitly.
- Step 3
Reconciliation
Where programs disagree, we identify the controlling requirement and the documentation needed to satisfy both reviewers.
- Step 4
Remediation and reporting
Findings are returned with citations by program, plus operational fixes for the patterns driving repeat errors.
Deliverables
What you receive.
- Property-level program map showing which rules apply where
- File-by-file findings separated by program with citations
- Conflict register identifying where program requirements diverge
- Recommended controlling-requirement determinations for each conflict
- Recertification calendar aligned across both program tracks
- Operational recommendations for the workflow changes that prevent recurrence
Common compliance risks
The findings we see most often.
Single-program review habit
Files that pass a Section 42 review can still fail an MOR because the HUD requirements were never applied.
Effective date drift
Layered files commonly carry two effective dates for the same household, which is a finding on both sides.
Rent limit collision
A correctly calculated subsidy rent can exceed the LIHTC gross rent limit, putting credits at risk.
FAQ
Frequently asked questions.
Related services
Work that pairs with this.
MOR preparation and corrective action
Prepare the HUD side of a layered property for a Management and Occupancy Review.
MOR preparation and corrective actionThird-party LIHTC file review
Section 42 file review for the tax credit side of the portfolio.
Third-party LIHTC file reviewHUD compliance review
Operational and file assessment under HUD Multifamily requirements.
HUD compliance reviewGet in touch
Have a layered property?
Send us the funding structure and the reviews you are facing. Altus Compliance will scope a layered review that answers to every program at once.