Preparing for a LIHTC Inspection

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Preparing for a LIHTC Inspection

• Connie Dippel
• Iowa Finance Authority
• 10/06

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IFA Housing Compliance SpecialistJob Summary

• Perform periodic physical inspections on projects
  to make sure
• The project has everything that was listed on the
  LIHTC application (i.e.
  community room, computer room, laundry
  facilities, storage units, garages, playground,
  etc.)
• The project is in good repair no health/safety
  deficiencies exist.
• Review documentation in tenant files to make sure
  tenants have been properly qualified to live in
  the units. Cross-check information in files with
  Annual Compliance Reports to make sure it
  matches.
• Review other documentation services at the
  project to make sure all compliance issues are
  being met.
• Monitor problem projects or projects with high
  vacancies. Perform additional physical and/or
  file inspections, curb/hall inspections or
  unannounced inspections if needed.
• Review Annual Compliance Reports.
• Notify owner IRS of any deficiencies found,
  whether or not they have been corrected or
  non-corrected. (This includes items fixed the
  same day of the inspection.)
• Work with owners, management companies managers
  to answer questions that arise.
• We all work together to do our best to provide
• safe, decent, affordable housing to low-income
  Iowans.

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Correspondence from IFA

• All correspondence regarding the project
  (including inspection notices and inspection
  findings) is sent directly to the owner or the
  owners designated contact.
• Note It is the owners responsibility to
  forward the correspondence to the
• management company/manager in a timely
  manner.

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Prior to the Inspection

• A letter is sent to the owner/owner contact
  approx. 30 days in advance notifying him/her of
  the inspection date time.
• A Compliance Questionnaire is sent with the
  inspection notice. It should be completed
  given to the inspector at the inspection.
• A current rent roll must be sent to IFA so that
  it is received at least 7 days prior to the
  inspection date. It can be mailed, emailed or
  faxed.
• Please include the name phone number of the
  contact person that will be at the inspection.
• Management must give the tenants a minimum of a
  24-hour notice that their units may be inspected.
• Management should do a self-check of the property
  prior to the inspection to make sure it is in
  good shape.
• Note We are not allowed to tell you which
  units/files will be inspected prior to the
  inspection date.

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Items Needed at the Inspection

• A manager or maintenance person with keys to all
  units, storage areas, utility rooms, etc. to
  accompany the inspector on the physical
  inspection.
• All original tenant files. (Files should be
  well-organized.)
• For 100 inspections, all original first-year
  move-in files are required.
• Completed Compliance Questionnaire.
• Copy of current lease.
• Copy of current utility allowances from Public
  Housing Authority (PHA), Rural Development (RD)
  or utility provider.
• Copy of Tenant Selection Criteria.
• Copy of waiting list. (if applicable)
• Supportive services file. (if applicable)
• Inspector will ask for copies of documentation
  showing what services are being provided, amount
  of participation and how needs are assessed.
• Operating reserves. (if applicable)
• Replacement reserves. (if applicable)
• Marketing, advertising, specials.
• Copy of inspections done by 3rd parties during
  the last year (not self-inspections).
• Copy of most recent inspection reports on fire
  alarm system, sprinkler system, and an emergency
  lighting system that cannot be checked by the
  inspector the day of the inspection (if you have
  this equipment). This safety equipment must be
  inspected within the last year.

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Physical Inspection Items(Examples of what we
are looking at. This list is not all inclusive.)

• Fencing/gates
• Garbage
• Grounds
• Parking lots
• Play equipment/area
• Retaining walls
• Signage
• Storm drainage
• Walkways/steps

Building Exterior Items
Site Items

• Exterior doors
• Fire escapes
• Exterior lighting
• Foundations
• Roofs (shingles, soffit, fascia, downspouts,
  gutters)
• Walls (siding, paint, holes, cracks)
• Windows
• Window screens

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Building Items/Common Areas

• Basement
• Ceilings
• Common laundry rooms
• Community room
• Electrical items
• Elevator
• Emergency lighting
• Fire protection (sprinklers, fire alarm system,
  fire extinguishers, smoke detectors)
• Floors
• Garages
• Graffiti
• Halls/corridors
• Interior doors
• Interior walls
• Kitchen

• Lobby/office
• Mailboxes
• Patios/porches/balconies
• Restrooms
• Stairs, handrails
• Storage areas
• Trash/litter
• Utility/maintenance closets
• Windows
• Window screens

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Unit Items

• Ceiling
• Bulging/buckling
• Holes, missing tiles or panels, cracks
• Peeling/needs paint
• Water stains/damage, mold/mildew
• Doors
• Holes, paint, rust, broken glass
• Damaged frames/threshold/ trim
• Damaged hardware
• Damaged/missing screen or door
• Electrical
• Frayed wiring
• GFI inoperable/need GFI
• Outlets wired wrong (such as open ground)
• Outlets have missing/broken cover plates

• Floors
• Bulging/buckling
• Damaged
• Missing flooring
• Deteriorated subfloor
• Water stains/damage, mold/mildew
• Hot water heater
• Not working
• Leaking
• HVAC (heating, ventilation, air conditioning)
• Inoperable
• Noisy/vibrating/leaking
• Damaged/covers missing

GFI outlet
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• Lighting
• Missing/inoperable fixture
• Missing switches
• Missing/broken cover plates
• Patio/porch/balcony
• Railings damaged
• Smoke Detectors
• Missing/inoperable
• Stairs
• Broken/missing hand railing
• Broken/damaged/missing steps

Unit Items - Continued

• Walls
• Bulging/buckling
• Damaged
• Damaged/deteriorated trim
• Peeling/needs paint
• Water stains/damage, mold/mildew
• Windows
• Cracked/broken/missing panes
• Damaged window sill
• Inoperable/not lockable
• Missing/deteriorated caulking/seals
• Peeling/needs paint

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Unit Items - Continued

• Kitchen
• Cabinets (missing/damaged)
• Countertops (missing/damaged)
• Garbage disposal (inoperable/loud)
• Plumbing (clogged/leaking)
• Stove (missing/damaged/ burners dont work)
• Stove/range hood exhaust fan inoperable or loud
  grease filter has excessive grease
• Refrigerator (missing/ damaged/inoperable)
• Sink (missing/damaged)
• GFI inoperable/need GFI

• Bathroom
• Cabinets (missing/damaged)
• Sink (missing/damaged)
• Plumbing (clogged/leaking)
• Shower/tub
• Toilet (damaged/functioning improperly)
• Fan inoperable/loud
• GFI inoperable/need GFI
• Laundry area in unit
• Dryer vent missing/damaged/ inoperable
• Has accessible electrical outlet(s) that is not
  GFI.
• Need GFI
• Make double outlet into one outlet that will be
  in use (not accessible)
• If no sink is in the area, may install a child
  safety plug in the accessible outlet w/sign
  posted that says DANGER, DO NOT REMOVE PLASTIC
  PLUG

This outlet is accessible
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Health/Safety Items

• Air Quality
• Mold/mildew
• Propane/natural gas/methane gas detected
• Electrical Hazards
• Exposed wires
• Open panels
• Water leaks on or near electrical equipment
• Elevator
• Tripping hazard (is misaligned)
• Emergency/Fire Exits
• Blocked or path is limited
• Missing exit sign OR there is no illumination in
  the area of the sign
• Flammable Materials
• Improperly stored combustible or flammable
  material

• Garbage/Debris (Indoors/Outdoors)
• Too much garbage/debris has gathered more than
  the planned storage capacity.
• Garbage/debris has gathered in an area that is
  not sanctioned for staging or storing it.
• Infestation
• Insects
• Rats/mice/vermin (sightings, droppings, rat/mouse
  holes)
• Hazards
• Sharp edges
• Tripping (anything that poses a tripping risk)
• Other The inspector has the authority to cite
  other general defects or hazards that pose a risk
  of bodily injury.

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Contact Information for Questions

• Call IFA ask to speak to the Housing Compliance
  Specialist assigned to your county.
• Iowa Finance Authority
• 2015 Grand Avenue
• Des Moines, IA 50312
• Phone [phone] or 1-800-432-7230
• Fax [phone]
• Website www.IowaFinanceAuthority.gov