Back to VHDA Home
Helping Virginians Attain Quality, Affordable Housing
Follow VHDA LinkedIn Facebook YouTube RSS Feed Twitter VHDA Blog Instagram
Español | Text Size: A- A  A+ | Text Only | Print Print

Low-Income Housing Tax Credit (LIHTC) Compliance

The federal Low-Income Housing Tax Credit (LIHTC) Program is sponsored by the U.S. Treasury Department and administered in Virginia through VHDA. The program is authorized under Section 42 of the Internal Revenue Code of 1986 to encourage development of affordable rental housing by providing property owners with federal income tax credit.

VHDA’s Compliance department monitors properties that have received LIHTC by periodically reviewing that qualified units provide safe, decent and affordable housing and that eligible renters occupy these units.

To maintain qualified tax credits, in addition to other program requirements (we strongly encourage owners to review Section 42 of the IRS Code and their Extended Use Agreement for specific eligibility requirements), owners must meet the general guidelines listed below:

Income Restrictions
Tax credit qualification is available only for units rented to low-income occupants. A property must have at least 20% of its units rented to households with incomes of 50% or less than the area median income (AMI) OR at least 40% of the units rented to households with incomes of 60% or less than the AMI.

Rent Restrictions
Rents on qualified tax credit units are restricted. Maximum allowable rent is based on the number of bedrooms and AMI as established annually by HUD. If a household pays for utilities, the maximum rent must be adjusted by the applicable utility allowance.


Forms and Documents
Current Tax Credit Compliance forms and documents.

Annual Tax Credit Reporting Process
Current instructions for completing the annual reporting process.

ACH Payment Instructions

Utility Allowance Estimates

Before using any utility allowance schedules posted on VHDA's website, please ensure that your local PHA has adopted VHDA utility allowances for use or that your only local PHA is a VHDA administered program agency.  Detailed information may be found in the documents below.


90DayNoticetoResidents-Sample.doc90 Day Notice to Residents - Sample11/7/2016
Bldg-by-Bldg-UAE-Spreadsheet.xlsBldg by Bldg UAE Spreadsheet11/5/2016
IRS-2008-UA-Reg-Update.pdfIRS 2008 UA Reg Update11/4/2016
IRS-2009-UA-Reg-Update.pdfIRS 2009 UA Reg Update11/3/2016
IRS-2016-UA-Reg-Update.pdfIRS 2016 UA Reg Update11/2/2016
Cover Letter - Sample.docxUtility Allowance Cover Letter - Sample9/24/2018
VHDA Utility Allowance Certification.docVHDA Utility Allowance Certification3/22/2018
VHDA Utility Allowance Options and Procedures.docxVHDA Utility Allowance Options and Procedures3/22/2018


NOTE: You will need Adobe’s Acrobat Reader (.pdf), Microsoft Word Viewer (.doc), Microsoft Power Point Viewer (.ppt), or Microsoft Excel Viewer (.xls) in order to view some of the documents on this page.

    Contact Us

    Compliance & Asset Management Staff


    Customer Service

    Toll Free: 877-VHDA-123
    Local: 804-782-1986


    Virginia Relay

    In Virginia: 711
    Toll Free: 800-828-1140


    VHDA Fraud, Waste or Abuse Hotline

    Phone: 804-915-3146
    Website: Reporting Fraud, Waste or Abuse