Md. Code Regs. 05.05.05.27

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.05.05.27 - Certification of Income

A. The sponsor shall obtain signed certificates of annual income from all tenants occupying a partnership unit and shall certify the annual incomes to the Department. The Department requires annual recertifications of income as well as periodic occupancy reports containing the information required by the Department. Leases and certifications are subject to periodic review by the Department.

B. For projects where existing tenants continue in occupancy during rehabilitation, the sponsor shall obtain signed income certifications from income-eligible tenants in partnership units before the loan closing.

C. The purpose of the certification of annual income and the reports is to assure compliance with the upper income limits established in accordance with the Act, and Regulation .08D of this chapter. In the case of a project that receives federal assistance, including low-income housing tax credits, the procedures for the certification of income prescribed by the federal agency are acceptable, including recertification waivers under 26 U.S.C. § 42(g)(8)(B).

D. The sponsor shall verify the information contained in the certificate of income, upon the consent of the individual, with the source of income, and file with the Department a report disclosing the income of all individuals selected for occupancy unless the sponsor obtained a waiver under the federal low-income housing tax credit program, as provided in 26 CFR § 1.42-5.

E. The sponsor shall retain all certificates of income and documents verifying the information contained in them for a period of at least 3 years from the date on which the income certification is submitted to the sponsor.

Md. Code Regs. 05.05.05.27

Regulations .27 adopted effective November 11, 1991 (18:22 Md. R. 2393)
Regulations .27 adopted effective December 15, 2008 (35:25 Md. R. 2150)