Affordable Housing Regulatory Compliance
HUD-assisted housing, LIHTC properties, and public housing authorities.
389
Total Enforcement Actions
1
Actions This Year
—
Total Penalties Tracked
388
Critical / High Severity
Regulatory Overview
LIHTC (Low-Income Housing Tax Credit) properties must maintain compliance with IRS Section 42 requirements or face tax credit recapture. HUD Section 8 and Section 236 properties undergo annual or triennial REAC physical inspections. HUD's Office of Fair Housing and Equal Opportunity enforces fair housing laws against PHAs and private landlords receiving federal subsidies.
Primary Enforcement Focus
REAC physical inspection failures trigger HUD enforcement. IRS credit recapture for income certification errors. Fair housing complaints target admission and occupancy policies.
Common Violation Patterns
REAC Physical Inspection Failures
Health and safety deficiencies including lead paint, mold, structural issues, and fire safety violations triggering HUD enforcement.
Income Certification Errors
Failure to properly verify and document tenant income for LIHTC and Section 8 — most common cause of audit findings and recapture.
Fair Housing Discriminatory Policies
Blanket criminal background check policies, source-of-income discrimination, and discriminatory application of occupancy standards.
LIHTC Minimum Set-Aside Violations
Renting restricted units to over-income tenants, or failing to maintain minimum low-income occupancy percentages.
Enforcement Actions — Affordable Housing
Violations Signal Board
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Key Regulations
26 USC 42 — LIHTC
Tax credit compliance requirements including income certification, rent restriction, continuous occupancy, and Extended Use Period obligations.
24 CFR Part 5 — General HUD Program Requirements
Income determination, rent calculation, and occupancy standards applicable across all HUD housing programs.
Fair Housing Act (42 USC 3604)
Prohibits discrimination in housing on protected bases. HUD FHEO investigates complaints; DOJ pursues pattern-or-practice cases.
REAC Physical Inspection Protocol
HUD's Real Estate Assessment Center conducts unannounced inspections using the NSPIRE standard (effective 2023).
HOME Investment Partnerships Program
24 CFR Part 92 requirements for affordability periods, tenant income limits, and property standards for HOME-funded units.