MSHDA Low Income Housing Tax Credit: Compliance Requirements

Owner must submit Certification of Continuous Compliance and Tenant Income and Rent Reporting annually to MSHDA in the form and manner MSHDA specifies.

Deadline: Annually by deadline specified by MSHDA in compliance monitoring notices

Source: MSHDA LIHTC Compliance Manual, Chapter 2 (Responsibilities), April 2026; Part 704 (Owner Certification of Continuous Compliance)

Owner must submit quarterly progress reports beginning at Reservation/Carryover Allocation and continuing until project reaches 100% construction completion and Form 8609 request is submitted.

Deadline: Due by 15th day of April, July, October, and January, covering previous three-month period

Source: MSHDA General LIHTC Forms; Quarterly Progress Report requirement; 2022-2023 LIHTC Program Application

Owner must submit copies of Certificates of Occupancy for each building in the development to MSHDA Compliance within five business days after each certificate becomes available.

Deadline: Within 5 business days of issuance of Certificate of Occupancy

Source: MSHDA 2013-2014 Qualified Allocation Plan; Placed in Service requirements

Owner must submit independent, third-party final owner's and contractor's cost certifications for all projects upon substantial completion and placement in service.

Deadline: Prior to issuance of IRS Form 8609; within 120 days of substantial completion per federal regulations

Source: MSHDA LIHTC Cost Certification Guide Policy; Placed in Service exhibit checklist requirements

Owner must submit annual compliance monitoring fees to MSHDA in accordance with Part 650 (Compliance Monitoring Fees) of the Compliance Manual.

Deadline: Due annually as specified by MSHDA in monitoring fee schedule

Source: MSHDA LIHTC Compliance Manual, Chapter 2, Section C (Meet Project's Initial Eligibility Requirements); Part 650

Owner must ensure compliance with Section 3 requirements if MSHDA financing or credits are used and comply with MSHDA HUD Section 3 policy for hiring local residents in low-income areas.

Deadline: Throughout construction and initial occupancy period as specified in allocation agreement

Source: MSHDA Combined Application; MSHDA HUD Section 3 policy guidelines

Owner must comply with MSHDA's Environmental Review requirements prior to placed-in-service status and ensure project meets MSHDA's environmental standards and any required Phase I or Phase II ESA testing.

Deadline: Environmental review must be completed and approved before building is placed in service

Source: MSHDA Combined Application for Rental Housing Programs; Tab D - Environmental Review Requirements; MSHDA QAP

Owner must maintain site records in accordance with IRC Section 42 requirements and IRS regulations (26 CFR Part 1.42-5(b)), including rent rolls, income certifications, and tenant eligibility documentation throughout compliance period.

Deadline: Records must be maintained during entire 15-year compliance period and available for inspection upon request

Source: 26 CFR 1.42-5(b); MSHDA LIHTC Compliance Manual; IRS Housing Credit Program guidance

Owner must comply with all terms and conditions of the LIHTC Allocation Agreement and record the Regulatory Agreement/Long-Term Restrictive Covenant (LURA) prior to issuance of Form 8609.

Deadline: Regulatory Agreement must be recorded on property deed before Form 8609 issuance

Source: MSHDA LIHTC Compliance Manual, Chapter 2 (Responsibilities); Part 164 (Regulatory Agreement)

Owner must complete all Inclusion Plan requirements (affirmative marketing to protected classes and persons with disabilities) within 60 days after award of LIHTC.

Deadline: Within 60 days of LIHTC award/allocation

Source: MSHDA QAP; Addendum VI (Inclusion Plan Requirements)