Low-Income Housing Tax Credit compliance is unforgiving. One blown TIC at file review, one missed AUR transition, one rent over the ceiling, and the project loses credits. ExactEstate runs IRC §42 enforcement as a first-class platform behavior — not a module you license. Rent ceilings validate at lease save. Income limits resolve at TIC approval. The 140% Available Unit Rule recomputes nightly. AIT averages compute live with pass/fail status. Every state HFA TIC generates from a per-state template the moment the certification is approved.
LIHTC compliance software enforces the rules of IRC §42 throughout a property's compliance period: applicable fraction calculation (§42(c)(1)(B)), minimum set-aside elections (§42(g)(1)(A)and (B), with the 20-50 / 40-60 thresholds), Average Income Test averaging (§42(g)(1)(C) and IRS Notice 2022-12), the Available Unit Rule / 140% rule (§42(g)(2)(D)(ii)), Extended Use Period tracking (§42(h)(6)(B)(i)), student status exceptions (§42(i)(3)(D)), the Treasury Reg.§1.42-5 record keeping and annual owner certification requirements, IRS Form 8609 first-year submission, Form 8703 annual residential rental project owner certification, and IRS Form 8823 noncompliance categorization. The software produces the state HFA Tenant Income Certification (TIC) form for the property's state and the audit trail that withstands a §1.42-5 site audit.
AUR / 140% rule engine that recomputes every unit's income against 140% AMI nightly.When a household crosses, an over-income event is flagged with the applicable program and remediation path, and the Next Available Unit Rule engages for the building. TheCompliance Hub surfaces the building's NAUR state with the citation chain to IRC§42(g)(2)(D)(ii) and IRS Form 8823 Line 11c.
Average Income Test support with per-property AIT election, per-unit designations at20/30/40/50/60/70/80% with effective dates, running-average ≤60% pass/fail validation,and inline designation editing per IRS Notice 2022-12. With AIT elected, AUR threshold logic shifts accordingly.
Applicable Fraction dashboard per building per year, with one-click recalc covering unitfraction, square-footage fraction, and the resulting applicable fraction. Citation: IRC§42(c)(1)(B) — min(unit fraction, floor space fraction).
State HFA TIC generation with native PDF generators for 13+ states: CA TCAC, NYHCR, TX TDHCA (HOTMA 2025-compliant), FL FHFC (v-24-04 January 2025), OHOHFA, MI MSHDA, GA DCA (2006 + 2024 final), IL IHDA, MD CDA/DHCD, CO CHFA,NC NCHFA, PA PHFA, AK AHFC. Per-state templates and data functions cover AK, CA,CO, FL, GA, IL, MD, MI, NC, NY, OH, PA, TX. 100+ form fields mapped per template.
Compliance Period tracker with placed-in-service date, initial compliance end,extended-use end, visual countdown, color-coded urgency, progress bar, and configurable alert window (Treas. Reg. §1.42-5 + §42(h)(6)(B)(i)).
HUD Income Limits auto-import from the HUD User API by ZIP and FIPS, with statewide fallback and interpolation, 30/40/50/60/70/80% tier support, and one-click"Apply to Designations."
Lease-level ceiling enforcement: at lease save, the platform validates the LIHTC ceiling, the HOME-Low ceiling, and the PBS8 contract rent simultaneously. The lease cannot be saved over the floor; errors itemize offending designation, price, utility allowance, total, and limit.
TIC sub-records, each independently verifiable with file upload, verified-by, andverified-date: asset records (with imputed asset income at the HOTMA passbook rate),wage records, benefit records (with HUD income codes), rental assistance records,USDA-specific income records for layered properties, and expense records covering the standard HUD categories (medical, disability, childcare for work, childcare for school,permissible, other).
AIT designations are stored with time-ranged effective dates, so historical rent rolls always resolve to the correct designation for any backdated date.
Frozen TIC PDFs per certification event with draft, final, and denied watermarks (gold"TRIAL TIC" for draft, red "DENIED" for denied). Reversible Denied → Draft forcorrection workflow.
DocuSign integration for TIC signing with parallel household-member signing (Head ofHousehold plus Co-Head/Spouse) and sequential owner signing. Background reconciliation handles out-of-order webhook updates.
ExactEstate generates theoretical-vs-actual rent reports with debit/credit journal entries via background task — required for LIHTC compliance to demonstrate qualified basis. Preview before submit; full audit log.
The platform references the actual citation chain in the UI when raising errors or notifications:IRC §42(c)(1)(B), §42(g)(1)(A)(B), §42(g)(1)(C), §42(g)(2)(D)(ii), §42(h)(6)(B)(i), §42(i)(3)(D);Treas. Reg. §1.42-5, §1.42-10, §1.42-12; IRS Notice 2022-12 (AIT); Rev. Proc. 2004-82 (NAUR procedures); IRS Form 8609, 8703, 8823.
What is LIHTC compliance software?
LIHTC compliance software is property management technology that enforces IRC §42 Low-Income Housing Tax Credit rules throughout a project's compliance period. It validates rent ceilings against the most restrictive applicable income tier,calculates the Applicable Fraction under §42(c)(1)(B), runs the 140% Available Unit Rule under§42(g)(2)(D)(ii), validates Average Income Test averaging under §42(g)(1)(C) and IRS Notice 2022-12, generates state-specific Tenant Income Certifications, tracks the Extended Use Period under §42(h)(6)(B)(i), and produces the §1.42-5 record keeping trail required for IRS site audit and IRS Form 8823 non compliance reporting.
Does ExactEstate support the Average Income Test?
Yes. ExactEstate supports AIT electionat the property level, per-unit designations at 20/30/40/50/60/70/80% with effective dates, and alive dashboard showing the running-average pass/fail status against the ≤60% cap. With AITelected, AUR threshold logic shifts per IRS Notice 2022-12. Per-floorplan designation matrices store AMI tier pricing with time-ranged effective dates.
How does ExactEstate handle the 140% Available Unit Rule?
The AUR/NAUR enginere computes every unit's annual household income against 140% of the unit's AMI cap nightly.When a household crosses the threshold, an over-income event is flagged with the applicableprogram and remediation path. The Next Available Unit Rule engages for the building —operators see the building's NAUR state on the Compliance Hub, including which units areflagged and the order in which subsequent vacancies must be filled with qualifying households.Citations to IRC §42(g)(2)(D)(ii) and IRS Form 8823 Line 11c are surfaced inline.
Does ExactEstate generate state HFA LIHTC TIC forms?
Yes. The platform ships native state TIC PDF generators for 13+ states including California TCAC, New York HCR, Texas TDHCA (HOTMA 2025-compliant), Florida FHFC (v-24-04 January 2025), Ohio OHFA, Michigan MSHDA, Georgia DCA (both 2006 and 2024 final versions), Illinois IHDA, Maryland CDA/DHCD,Colorado CHFA, North Carolina NCHFA, Pennsylvania PHFA, and Alaska AHFC. Per-state TIC templates resolve automatically based on the property's state. 100+ PDF form fields are mapped per template with checkboxes marked correctly. Addendum pages auto-trim for households of five or fewer.
Does ExactEstate handle stacked LIHTC + HOME + Section 8 properties?
Yes. ExactEstate models layered compliance on a single unit. At lease save, the platform validates against theLIHTC ceiling, the HOME-Low ceiling (if applicable), and the PBS8 contract rent (if applicable) simultaneously. The most restrictive violation is raised with an itemized error. At certification, therule engine resolves each program's income limit and returns the most restrictive ceiling for thehousehold size. The recertification schedule resolves to the shortest applicable cadence across programs.
How does ExactEstate handle the Applicable Fraction?
The platform maintains applicablefraction tracking per building per year, with cached unit fraction, square-footage fraction, and theresulting applicable fraction. The dashboard provides one-click recalculation. Citation: IRC§42(c)(1)(B), where applicable fraction = min(unit fraction, floor space fraction).
Does ExactEstate produce the records required for an IRS §1.42-5 audit?
Yes. Theplatform produces frozen TIC PDF snapshots at approval (no after-the-fact edits), append-onlyactivity logs indexed for query, period-close enforcement on every dated transaction, retention ofLIHTC compliance documents to the Treas. Reg. §1.42-5 standard (compliance period + 6years), and a unified compliance file folder per property — covering 50059 packets, TICpackets, owner certifications, REAC/NSPIRE physical inspection records, MOR records, TenantSelection Plan, AFHMP, EIV reports, and supporting income/asset verification.
What is the Extended Use Period and does ExactEstate track it?
The Extended Use Periodunder IRC §42(h)(6)(B)(i) is the post-compliance-period restriction (typically 15 additional yearsbeyond the initial 15-year compliance period, for a 30-year total) during which units remain rentand income-restricted. ExactEstate tracks the Compliance Period per property withplaced-in-service date, initial compliance end date, extended-use end date, and a configurablealert window. The compliance hub renders a visual countdown with color-coded urgency.
How does ExactEstate handle student status restrictions?
Student household qualificationunder IRC §42(i)(3)(D) is captured in the TIC workflow with the relevant exceptions(single-parent households, married joint filers, formerly in foster care, programs assistingtransition from homelessness, Title IV educational programs). Income certifications surfacestudent-status warnings before approval.
Does ExactEstate handle HOTMA-aligned LIHTC calculations?
Yes. While HOTMA is aHUD regulation, its income and asset rules now flow through LIHTC TIC calculations on layeredproperties. ExactEstate applies the revised §5.609 income definitions, the §5.611 deductionrules, the §5.618 asset threshold ($50,000+ rule, where only actual asset income counts abovethreshold — not imputed), and the §5.617 de minimis rule wherever LIHTC certifications runalongside HUD-assisted programs.