HUD Consolidated Audit Guide & LIHTC
A HUD audit tests distributions, controls, and disclosures against federal standards — not just the accuracy of the numbers.
Tell us about your property, your HUD or LIHTC obligations, and your timeline. We review where you stand and tell you what an audit would surface before anyone else asks.
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What Federal Oversight Actually Tests
A real estate audit under HUD oversight goes beyond a recount of your financials. It tests distributions, internal controls, and related-party disclosures under federal standards most owners have never read, and many find out what is in scope only when the findings arrive.
We handle this work for property owners, investors, and management agents nationwide under the HUD Consolidated Audit Guide and Government Auditing Standards. Dimov Audit is an AICPA peer-reviewed firm.
What it examines
What a HUD audit examines
Distributions and surplus cash
A Surplus Cash Computation is required before any distribution. Get it wrong and the findings follow: ineligible distributions, mandatory repayment, control overhauls.
Debt and HUD approval
Loans, lines of credit, and owner advances taken without prior HUD approval are prohibited. The insured mortgage is serviced first.
Internal controls
Under the Consolidated Audit Guide, controls are tested regardless of risk assessment, unlike a standard audit.
Identity-of-interest disclosures
Payments of $1,000 or more to a related party trigger mandatory disclosure. Missed disclosures are findings, intent or not.
Security deposit accounts
These must be segregated and reconciled monthly against the actual liability on the books.
Talk to a CPA about your HUD exposure
If you hold HUD obligations or LIHTC credits and want to know where you stand before a finding opens, reach out.
We will tell you what an audit would surface and what to address first. No obligation, and all handled by a CPA.
Why LIHTC Oversight Is Tightening
IRS oversight of the Low-Income Housing Tax Credit program was light for decades. That has changed: Treasury's Inspector General has pushed for a formal examination-selection process aimed at questionable owner and investor filings. Because LIHTC properties answer to IRS credit rules and HUD income definitions at the same time, the same property now sits under two oversight frameworks at once.
LIHTC set-aside tests
The three LIHTC set-aside tests
LIHTC properties must pass one of the following set-aside tests at every annual certification.
20-50 test
At least 20% of units rent-restricted and occupied by households at or below 50% of Area Median Income.
40-60 test
At least 40% of units rent-restricted and occupied by households at or below 60% of AMI.
Average income test
Added in 2018: at least 40% of units rent-restricted, with the average of the designated income limits at or below 60% of AMI.
Who a HUD audit is for
A good fit if you:
- Are a property owner, investor, or management agent with HUD program obligations.
- Hold LIHTC credits and want the set-aside and income tests confirmed.
- Are responding to a lender request, a filing that has drawn attention, or an open finding.
- Want a clean, defensible file before a deadline forces it.
Why a CPA firm
Why a HUD audit needs a CPA firm
Consolidated Audit Guide fluency
The work follows federal standards a general advisor does not operate under.
Controls tested regardless of risk
HUD engagements do not allow the shortcuts a standard audit permits.
Dual-framework handling
LIHTC properties require fluency in both IRS credit rules and HUD definitions.
Peer-reviewed accountability
An AICPA peer-reviewed firm stands behind the file.
Why choose Dimov Audit
Why owners bring HUD work to Dimov Audit
The Consolidated Audit Guide applied directly, controls tested without shortcuts, and dual-framework handling when HUD income definitions and IRS credit rules touch the same file.
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What drives the cost of a HUD audit
HUD audit work is priced by the engagement.
We size the work against your property and give you a clear quote before you commit.
Contact
Connect with Dimov Audit
Our dedicated team is ready to assist you on your path to financial success.
211 E 43rd St Suite 628
New York, NY 10017
United States
HUD audit FAQs
Are your financials audit-ready?
Are Your Financials Audit-Ready?
At Dimov Audit, we pride ourselves in quick communication, accurate work, and seamless delivery.