Affordable Housing File Review

Affordable Housing Procedures

State reviews files a bit differently than the LIHTC

This is an outline of DCA procedures. 

This is not a list of every scenario or situation

           MOVE IN PAPERWORK

• Move in application
• Move in TIC
• MI income documentation::  Annual income: W-2/ Award letter/1099/ paycheck stubs for 30 days prior to recertification or 60 if gig work/ tax return if self employed;  social security, pensions, unemployment compensation, child support;   bank statements/IRA if 1099 or liquid assets exceed $5000.00
• Lease (with names of parties, rent amount and date terms, also page with security deposit and signature page; executed
• Identification- driver's license or state ID- or social security card and other picture ID
• MI addendums to include VAWA, DHCD, Lead Paint (if applicable), Tenant Participation (if applicable), HOME (if applicable), and Section 811 Waiver (if applicable)
• MI Inspection form

       RECERTIFICATION

• A most recent Tenant Income Certification (TIC) form or a HUD 50058 or HUD 50059 with the appropriate backup documentation or RHS 1944-8 form; executed by all adult tenants
• A checklist for adult household member #1; 
• A copy of third party verification of income and assets, of adult household member #1, 
•  A checklist for adult household member #2, etc., if applicable, 
•  A copy of the Asset Certification if applicable; 
•  A copy of the Student Eligibility Certification, if applicable; 
• HUD 9887 or HUD 9887A, Authorization to Release Information, or similar form, if used by the development.  
• 3rd party income verification documents (if applicable), or self-certification
• Lease renewal addendum
• Notification of rent increase
• Recertification Notice 
• Most recent physical inspection

PRE-INSPECTION REPORTS AND DOCUMENTS- 

• Current rent roll to include the following information- unit number, unit type, unit designation (% of AMI), unit funding (HOME,TAX CREDIT, STATE, etc), resident name, move in date, last recert date, rent amount, tenant portion, subsidy portion, charge code, security deposit paid.
• Current Balance Sheet
• Current A/P and A/R reports
• Current rent schedule and utility allowance 
• Turnover report for last 12 months
• Current Affirmative Fair Housing Marketing Plan (if changed within last 5 years)
• The Tenant Selection Criteria  (if changed since last review)
• Documentation of Resident Services provided (such as newsletters, sign in sheets or 3rd party contractor reporting information)
• Copy of the project's active listing on MDHOUSINGSEARCH.ORG
• Number of outstanding work orders (report)
• rental license, elevator license, fire inspections

Silver Spring move in income for all existing tenants in the files. 

Annual recertification was done on what date? 

All 68 files should have 2024/ 2025 recertifications.

For LIHTC group I refer to this 92 page manual:

 https://dhcd.maryland.gov/HousingDevelopment/Documents/lihtc/Compliance-Manual-Draft.pdf

Other files can be randomly selected. Also physical inspections may occur.

Housing in America 2025

Factors Shaping the 2025 Housing Market

The U.S. housing market is in the midst of a profound transformation. What used to be explained by broad national trends now requires a local lens. 

1. The Regional Divide Is Now the Defining Feature of Housing

Real estate markets have grown increasingly localized. Pandemic-era boom markets such as Florida, Texas, and Arizona are cooling. These areas saw enormous growth in home prices during the height of remote work migration but are now seeing price corrections and growing inventory due to affordability issues and rising costs. Back to work trends are reshaping rural communities and changing where workers will live.

In contrast, markets in the Midwest and Northeast are demonstrating more stability. These regions have seen less dramatic price growth, are more supply-constrained, and remain relatively affordable. As a result, they are attracting more sustained demand. A one-size-fits-all narrative no longer applies in today’s housing market.

2. Rising Inventory Alone Cannot Solve Affordability Challenges

Home inventory has increased, especially in markets that experienced rapid post-pandemic construction. However, higher mortgage rates and inflated insurance costs have muted buyer activity. Many potential buyers are priced out of the market or are choosing to wait out the volatility. Sellers, for their part, are increasingly pulling listings when offers do not meet expectations. Even slight movements in mortgage rates can lead to canceled deals. Both buyers and sellers appear to be stuck in a state of hesitation, waiting for clarity on where the market is headed.

New construction at lower price points means density, less fabulous finishes, room to add an ADA, building on locations that may have huge demolition costs. Cities have to revamp the permit process and speed up breaking ground which delays cost money.

3. Climate Risk and Insurance Are Reshaping Market Viability

Natural disasters and rising climate-related insurance costs are creating fundamental shifts in market dynamics. States like Florida, as well as parts of the Midwest often affected by hail and tornadoes, are facing rapidly increasing premiums. Some areas are seeing a surge in delinquencies and even negative equity due to repeated disaster damage and stagnant property values. In these places, high insurance costs combined with affordability pressures may trigger more foreclosures or even reduce long-term demand. While newer construction in these areas may be more resilient due to updated building codes, the existing housing stock remains vulnerable.

Perhaps we don't build in the wake of a flood path. Maybe we consider raising foundations and sea walls as part of the plan.

4. Urban and Transit-Oriented Markets Are Regaining Their Appeal

Post-pandemic migration patterns are shifting once again. While remote work drove demand toward suburban and Sunbelt regions, the partial return to office has reversed some of these flows. Urban centers such as Chicago, Boston, and New York are seeing renewed strength. Homebuyers are looking for neighborhoods with proximity to jobs and transit without being located in high-density downtown cores. Suburban areas surrounding these cities are benefiting most, with strong home price appreciation and buyer interest. At the same time, states like Florida have seen a significant decline in in-migration, particularly from retirees and remote workers who are now seeking alternatives in the Carolinas and the Northeast.

5. Multifamily Markets Face Diverging Fortunes

Multifamily real estate is showing signs of resilience but is under pressure from macroeconomic forces. Markets like Austin and Orlando, which saw a flood of new supply during the pandemic, are now grappling with falling rents and rising vacancies. On the other hand, constrained markets in the Midwest and Northeast are faring better, with steady rent growth and stronger occupancy. Class A retail and multifamily assets in prime locations are performing well, driven in part by the wealth effect from a strong stock market and investor interest. Meanwhile, construction starts have slowed due to high interest rates and ongoing labor challenges, which may limit future supply and support pricing power in select regions.

Looking Ahead

The housing and multifamily sectors are confronting a complex web of variables including inflation, interest rates, climate risks, and demographic shifts. While no single trend defines the outlook, several themes are clear. Local conditions now dominate market performance. Stability and predictability, particularly in mortgage rates, are more important than just rate reductions. And the interplay of climate resilience, infrastructure quality, and housing policy will shape which regions thrive in the next economic cycle.

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