January 22, 2026

Note: Direct any questions on the content of this message to OHFA’s Compliance and DevCo Help Desk.

Running a Business Out of a LIHTC Unit

Can tenants run a business from their unit? According to the IRS, the answer is “Yes,” but landlord-tenant laws, local zoning, and the LIHTC lease may prohibit businesses.

"A tenant may use a LIHTC unit to conduct a home-based business, as long as they are income qualified for the unit and the unit is their primary place of residence.” 

The 8823 Guide states on page 4-13:

A low-income tenant may use a portion of a low-income unit exclusively and on a regular basis as a principal place of business, and claim the associated expenses as tax deductions, as long as the unit is the tenant’s primary residence. If the tenant is providing daycare services, the tenant must have applied for (and not have been rejected), be granted (and still have in effect), or be exempt from having a license, certification, registration, or approval as a daycare facility or home under state law.

OHFA highly recommends owners/management agents consult with their company attorney to review their leases and addenda to ensure they comply with all applicable tenant–landlord laws regarding the use of a home-based business. Many times LIHTC leases include a “residential use only” clause. Further information is found in OHFA’s revised Compliance Manual.

Code Violations

Owners/management agents are reminded of their responsibilities under Treas. Reg. §1.42-5(c)(1). Pursuant to this regulation, AOCs are due annually to OHFA and such certifications are made under penalties of perjury. Code violations must be reported in AOCs. Further information may be found here.

Note: Owners/management agents who fail to report code violations may be referred to OHFA’s Office of Multifamily Programs to determine if a project remains in good partnership with the Agency. 

HOTMA Extension — Again! 

Through the release of Housing Notice H-2025-07, HUD has extended the compliance date for HOTMA Sections 102 and 104 for Multifamily Housing programs. 

Under the new guidance, HUD Multifamily Housing project owners must be in full compliance with the HOTMA Final Rule for certifications effective on or after January 1, 2027, which replaces the prior compliance effective date of January 1, 2026.

What does this mean for owners/management agents of Ohio -funded projects? The extended compliance date applies to HUD Multifamily Housing projects only. OHFA implemented HOTMA on May 1, 2025, and began enforcing HOTMA file errors through the issuance of Form 8823 effective January 1, 2026, for all OHFA-funded projects. 

Because of the extension of the HOTMA implementation date, HUD Multifamily Housing project owners will have to continue conducting two different income/asset calculations: one for LIHTC program and the other for HUD. This will continue until HUD has updated its forms and TRACs.

Annual Owner Certification Reporting Is Here!

The 2025 reporting year AOCs are due March 1, 2026. Owners/management agents may submit AOCs now rather than wait until the deadline. Listed below are a few reminders to prepare for AOC submissions:

• All tenant events must be manually entered as the XML Upload feature is no longer an option.

• All tenant events must be updated in DevCo by no later than the 10th of each month in preparation for submitting AOCs. 

• Utility allowance information must be updated in DevCo annually. 

Importantly, owners/management agents must ensure all staff members responsible for completing AOCs have access to DevCo. If any assistance is needed, contact OHFA’s Help Desk. 

OHFA Operating Survey

Part of the annual reporting process for LIHTC projects includes completing the 2025 Annual Operating Survey. The survey must be completed for each project awarded tax credits between 2007–2021 (project numbers that begin with “07” through “21”).

Completed surveys must be submitted to PortfolioMailbox@ohiohome.org by no later than March 2, 2026. Questions regarding the annual operating survey may be directed to Kevin Clark at kclark@ohiohome.org.

Revised Applicant/Tenant Sworn Income and Asset Statement

OHFA has revised the SIAS form to reflect HUD’s new 2026 asset threshold amount of $52,787 that became effective January 1, 2026. Owners/management agents must begin using the revised form immediately. For tenants already certified with the older version of the form, it is not necessary to have the tenant complete and sign the revised version. 

Stay Informed! 

Subscribe to OHFA’s email distribution list, which allows you to receive important notifications concerning regulatory and policy changes, development updates, and much more. Please forward the subscription link to any of your staff who may benefit from this type of information.

Reminder to all 811 project owners/management agents: Stay in the know! You can now receive 811 updates through OHFA’s email distribution list. Be sure to select Ohio 811 PRA under Email Lists on the sign-up form.