What Is an Audit in Housing?

An audit in housing is simply a formal evaluation that examines whether housing developments satisfy financial and operational or regulatory obligations linked to their funding. It should be recognized that these reviews are typically conducted on properties supported through public programs—like the Low-Income Housing Tax Credit (LIHTC), HUD Section 8, or local subsidies—and may cover multiple phases in accordance with the funding structure.

Within this context, auditors focus on the full picture—tenant eligibility, lease documentation, income certifications, as well as rent limits. Such audits aim to confirm that every dollar, tenant, and square foot fulfills the conditions in parallel with the federal, state, or local oversight bodies.

Who Conducts These Audits?

Audits may be performed by the following bodies:

• State housing finance agencies
• HUD or HUD-approved agents
• Independent CPA firms engaged for financial reporting or cost certifications

What Gets Reviewed?

The scope can be distinct. Yet, several areas are standard in housing audits:

• Certified tenant files, covering validation of the income and household composition
• Rent rolls matched against maximum allowable limits
• Lease agreements and affordability compliance periods
• Financial statements and use of subsidy funds
• Bond compliance in cases of tax-exempt financing

In developments linked to construction accounting services, there may be additional elements as outlined below:

• Job costing in construction
• Bonding in construction documentation
• Construction accounting methods tied to capital expenditures

Every piece of documentation assists in verifying not only eligibility but long-term sustainability. A finding in one tenant file could impact the status of the entire development—especially in the context of LIHTC programs.

Red Flags in Housing Audits

• Incomplete or unsigned income certification forms
• Rent charged above program limits
• Missing utility allowance documentation
• Absence of support for reserve transactions or capital improvements

If construction accounting is involved, mismatches in job costing or bonding capacity calculation might also raise questions during the review.

Why Housing Audits Matter

It should be acknowledged that an audit in housing isn't just about compliance—it’s a checkpoint to safeguard eligibility and funding alongside the future of the project. Contact Dimov Audit today to schedule your initial consultation for affordable housing audit matters.