LIHTC Guide
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Section 42 Compliance

The LIHTC Guide

Presented by A. J. Johnson Consulting Services, Inc.

State Agency reviews and IRS scrutiny of Section 42 Low‑Income Housing Tax Credit properties continues to intensify, and compliance requirements are now more complex than ever.

As a manager, owner, or investor in tax credit properties, the best way to protect your investment is to ensure that you and your staff fully understand the requirements of the program. The LIHTC Guide gives you that foundation — along with income calculation tools, AI‑powered document analysis, and an on‑demand compliance chat to help you work smarter and stay ahead.

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Free Resources
Compliance Guides

PremiumStep-by-step guidance, included with any subscription

The Compliance Guides cover income certification, rent limits, annual recertification, and compliance monitoring for LIHTC properties. Available with any paid subscription.

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The Professional Property Manager’s Guide to the Low-Income Housing Tax Credit

A comprehensive operational manual for property managers of tax credit housing, covering the full spectrum of Section 42 compliance: income and rent determinations, resident qualification, documentation, recertification, and noncompliance. A practical reference for navigating the complex IRS regulations that govern the program at the property level.

The Professional Property Manager’s Guide to Compliance with the Violence Against Women Act

A comprehensive training manual covering every aspect of the Violence Against Women Act as it applies to federally assisted housing: tenant protections, certification procedures, emergency transfers, lease bifurcation, and confidentiality requirements. Aligned with HUD’s Final VAWA Rule and includes model HUD forms ready for implementation.

Critical Elements of Low-Income Housing Tax Credit Management

Designed for professionals new to affordable housing management, this guide builds a foundational understanding of LIHTC compliance requirements (from rent restrictions and tenant eligibility to asset rules and IRS reporting), giving you the confidence to manage tax credit properties correctly from day one.

Section 42 Low-Income Housing Tax Credit Program: Advanced Issues

Written for seasoned affordable housing professionals, Advanced Issues goes beyond the basics to equip developers, asset managers, and compliance specialists with in-depth knowledge of complex program mechanics: credit calculations, recapture rules, acquisition deals, IRS forms, and tax-exempt bond compliance.

Compliance with Federal Fair Housing Requirements

A comprehensive, case-law-driven guide to understanding and applying federal fair housing requirements: protected classes, prohibited activities, disability accommodations, advertising rules, and the HUD enforcement process. It equips your team to avoid costly violations and foster a truly inclusive community.

Guide for Completing Form 8823

This IRS Audit Technique Guide (Publication 5913) provides comprehensive instructions for completing Form 8823 to report noncompliance or building dispositions in Low-Income Housing Credit properties under IRC Section 42. It covers all 16 categories of noncompliance, from income limits and rent restrictions to physical inspection standards and fair housing requirements, with detailed guidance on determining compliance status, documenting violations, and understanding correction procedures.

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Free Tools
Income Limit & Calculation Tools

Paystub Analysis & Calculation

Securely upload paystubs to have the data extracted and analyzed. Calculations are completed for you in seconds and detailed, easy-to-understand calculation methodology worksheets are available to print.

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Employment Verification Analysis & Calculation

Upload employment verification documents to extract hourly rates, overtime, shift differentials, and other key aspects provided by employers. Annual income projections are calculated automatically, with detailed printable worksheets ready to include in household files.

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Income Limit & Rent Tables

Current and previous HUD income limits and maximum rent tables organized by area, household size, and AMI percentage. Always up to date and designed for fast lookups.

AI Compliance Chat

Ask any LIHTC compliance question and get answers grounded in statutes, regulations, and agency guidance. Every response cites its sources with direct links to the relevant sections.

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Household Folio

PremiumKeep every calculation organized by household

Save results from any calculator to a specific household, automatically track total income and assets, keep notes, reopen any calculation in its tool, and combine every worksheet into one PDF. Included with any subscription.

Save results from any tool

Run a paystub, salary, hourly, YTD, benefits, asset, or military calculation, then save it straight to a household with one click.

Organize by household

Group calculations by household with property name, unit number, and member count, so you can find any case fast.

Automatic income & asset totals

Household income and total asset cash value are summed across saved results, each with a per-source breakdown.

Notes & recordkeeping

Add timestamped notes to any household to keep a running record alongside the figures.

Reopen in the calculator

Any saved result reloads back into its tool with every input intact, so you can review or adjust the calculation.

One combined PDF

Generate a single PDF that combines every saved worksheet for a household, or print any result on its own.

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Research & Data Tools
Your Compliance Expert, On Demand

Grounded in the Source Material

Every answer is drawn directly from statutes, regulations, compliance guides, and HUD guidance — never fabricated.

Cited Sources

Responses include inline links to the exact sections referenced, so you can verify and read further in context.

Conversational Follow-Up

Ask follow-up questions that build on previous answers. The chat maintains context across the full conversation.

Built For

Property Managers

Whether new to Section 42 or looking to deepen your compliance foundation.

Experienced Managers

Stay current with ongoing regulation changes and updated agency guidance.

Owners & Investors

Protect your Section 42 investment by understanding the compliance landscape.

Compliance Professionals

A comprehensive desk reference for consultants and compliance officers.

Security & Privacy

AI features in LIHTC Guide are powered by Anthropic. Uploaded documents are processed securely, are never retained, and are not used to train AI models. For details on Anthropic’s security practices, data handling, and compliance certifications, visit the Anthropic Trust Center. To learn how we handle your information, review the AJJCS Privacy Policy.