Q & A

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Q I am trying to determine the eligibility of an applicant who has been working as a hairstylist since January 2008. She is not self-employed; she is an employee of the hair salon. Her employer completed our third-party verification, but refused to give us a detailed income printout. In addition, the applicant does not have any pay stubs. Our state agency requires that we obtain either a printout or pay stubs. The employer told us that the applicant receives 50 percent commission and 100 percent of the tips she makes.

Q I manage an affordable housing site, and a number of our residents are self-employed as housecleaners and other service personnel who are paid in cash, or as babysitters, dancers, singers, and waiters/waitresses who live on tips. They don't file tax returns. How do we handle their claims about the income they receive?

A The income you describe is considered income from self-employment, Moreland says.

Q As the owner of a tax credit site, I recently terminated the employment of a manager who was living at the site. Even though she has been terminated, she's still living on-site. The unit no longer qualifies for tax credits, because it is being occupied by someone who is neither an employee nor a low-income resident, so I am seeking her eviction. Meanwhile, I have hired a new manager and would like to move him into the site manager's unit as soon as possible. However, it is not clear how long it will take to evict the ex-manager.

No matter how efficiently you run your tax credit site, your state housing agency may one day cite you for noncompliance with the tax credit law. If that happens, your state housing agency must notify your site's owner of the violation and also report it to the IRS using IRS Form 8823 (Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition).

Q There has been an increase in criminal activity in and around my tax credit site. I want to install additional lighting on my building entrances, courtyards, and other common areas, for security. Will HUD pay for it?

Q How long should I retain the results of a criminal background check performed on a resident?

A According to Cheryl McMillon, a 25-year veteran of affordable housing management, HUD's general rule on retention of criminal background checks states:

Q I'm developing an affordable housing site, and I've just received an allocation of tax credits. I'm wondering if there's anything I can do to qualify for more tax credits down the road?