Property Inspections

Related Pages

For Renters

For Property Managers

Be the first to know!
E-News monthly newsletter

info

This page contains information for property managers about WSHFC's LIHTC property inspection process, including inspection schedules, requirements, FAQs, compliance rules, and what property owners and managers can expect before, during, and after an inspection.

To check if your property is scheduled for a Tax Credit inspection during the calendar year, review the "Report Types by Property Name List" on WSHFC's website. If your property's Review Type is "On-Site Tax Credit Inspection" or "On-Site Post 15 Inspection" then the property will be inspected sometime between March and October.

Federal regulations require that LIHTC properties are inspected a minimum of once every three years. Inspections of the Commission's LIHTC properties are currently done by U.S. Housing Consultants.

LIHTC Inspections FAQ

info

These FAQs are based on staff interpretations or understanding of IRS rules and guidance for the Low Income Housing Tax Credit Program. Ultimately, owners are responsible for making sure their properties are in compliance with both federal regulations and state requirements as outlined in the Commission’s Policies, Regulatory Agreements, and published compliance guidance. 

Published: March 2026 

How do I know which of my properties will be inspected each year? 

Each December, WSHFC assigns an annual report type to every property. We publish the assignments as a list on this web page. Download the “Report Types by Property Name List” as an Excel file and you can filter your projects by your property management or owner company name. The relevant report type – including inspection report types – is noted next to each property name.

Why is US Housing Consultants (USHC) so strict in their interpretation of NSPIRE? 

US Housing Consultants is a nationally recognized affordable housing consulting firm which provides significant guidance to regulatory agencies, developers, syndicators and operators in our industry. They have deep knowledge of NSPIRE standards and were heavily involved during the NSPIRE demonstration phase.  During the pilot, they provided feedback to HUD based on their field experience with numerous housing finance agencies and public housing authorities. As a consultant for WSHFC, USHC’s job is to apply NSPIRE standards consistently and accurately in order to ensure good outcomes for our properties and to manage risk for our agency.   

Does the Commission have an appeals process for LIHTC inspections?

 Unlike the appeals process available to recipients of HUD REAC inspections, there is no formal appeals process for LIHTC inspections, neither at the federal level nor the state level. WSHFC does not remove deficiencies from an inspection report. If you have a concern about a deficiency or set of deficiencies, contact your property’s monitoring Portfolio Analyst to discuss what options may be available to resolve the situation.

Why don’t Commission staff conduct the inspections themselves?

While WSHFC staff used to conduct inspections of LIHTC properties, our portfolio has grown too large for our staff to complete both file reviews and physical inspections. Moreover, we want to provide a fair, objective inspection process for all our properties. To ensure a fair and objective assessment, we have chosen to contract with independent third-party evaluators to do this work.  

Why won’t the USHC inspector tell me how to repair a deficiency?

 To maintain the integrity of the inspection process, our vendors are required to remain neutral. They provide a list of deficiencies based on NSPIRE standards, but they cannot offer repair advice. This ensures there is no conflict of interest between the person identifying the problem and the person suggesting the solution. Because the inspector’s contract is with WSHFC and not the property owner, providing specific repair recommendations could create a conflict of interest or lead to liability issues if a suggested fix does not meet local building codes. For the best results, please share your inspection report with a licensed professional to determine the best repair strategies.

One of the deficiencies the USHC inspector identified is not a problem according to local building code, does that make a difference?

 Yes! Federal guidance does allow LIHTC properties to meet either HUD inspection standards or local building code. Therefore, if a report finding constitutes a deficiency under NSPIRE BUT is something which is allowable under local building code, WSHFC will accept confirmation from local building code officials in place of requiring the owner to repair the deficiency.

To ensure that you can take advantage of this option, be sure to send your monitoring Portfolio Analyst the right information.  For properties built or rehabbed after 2022, a copy of the property’s Certificates of Occupancy can be sufficient to confirm local building code exceptions. If your property was built or rehabbed prior to 2022, you will need to get an email or a letter from someone who works for your city or locality’s building code department confirming that the inspection deficiency is allowable under local building code.   

What if I don’t understand a deficiency or need more clarification after the inspection?

 If you don’t understand a deficiency identified during the inspection, ask the inspector to explain it to you more clearly. After the inspection, review the photo taken by the inspector (which is linked to the deficiency grid) and review NSPIRE definitions and guidance to get greater clarity. Finally, you can contact your property’s monitoring Portfolio Analyst to discuss the situation so we can get you the information you need.

Can I reschedule my inspection?

Under most circumstances, no. However, if all your agency staff will be unavailable on the inspection date (due to an agency retreat or similar event), please contact USHC immediately to let them know. They will coordinate with us to discuss rescheduling the inspection. 

 Can I get more than two weeks’ notice before the inspection date?

 Federal regulations prohibit the Commission from providing more than two weeks’ advance notice of the specific inspection date. However, we publish a list of all properties being inspected in the following calendar year on our website every December so that some advance planning can be done by owners.  

Inspection Noncompliance Rules

Updated: March 2026

Inspection Schedule

LIHTC property inspections are conducted between March 1 and October 31 each year. WSHFC has contracted with U.S. Housing Consultants to complete all inspections. For more detail about how inspections are conducted, please review the general inspection guidelines on our website. All inspections are conducted according to HUD’s NSPIRE standards. For more information about NSPIRE, please visit HUD’s website.   

warning

If an owner submits documentation to cure outstanding deficiencies AFTER we have issued the uncorrected 8823, we will issue a fully corrected 8823 at the time of the next annual report review.

Properties with Multiple Public Funders

Due to increasing federal oversight concerning LIHTC inspections, we are no longer able to accept another funder’s inspection in place of our LIHTC inspection, unless the inspection is a HUD REAC inspection. However, other public funders may be willing to accept a LIHTC inspection report in lieu of doing their own inspection.  

Please reach out to your other funders to discuss further. If you have a REAC inspection date confirmed, please contact WSHFC immediately so we can cancel our inspection. Email Melissa Donahue, Asset Management & Compliance Manager, at melissa.donahue@wshfc.org.

Properties in their Federal Compliance Period (First Credit Year through Year 15)

Increasing federal pressure and IRS scrutiny have compelled WSHFC to change their position concerning deficiencies found at inspections. The Commission must report all deficiencies found at inspections, whether or not they are subsequently corrected. 

The following reporting process is in place for projects in their Federal Compliance Period:

Within two weeks after an inspection, WSHFC will issue a deficiency letter to the owner/manager with the list of items to be fixed. The date of the deficiency letter will start a 90 day correction period. At the end of 90 days, if all deficiencies have been corrected, Form 8823 will be sent to the IRS in a corrected state.
Issuing a corrected Form 8823 will be contingent on receiving sufficient documentation to prove all deficiencies have been cured. If there is not enough documentation provided or the documentation is unclear, Form 8823 will be issued in an uncorrected state.
  • If all deficiencies have NOT been resolved, Form 8823 will be sent to the IRS in an uncorrected state.
Additional Guidance

For any project which is now past Year 15, uncorrected deficiencies will result in the issuance of a State Noncompliance Notice. If deficiencies are corrected within 90 days of WSHFC’s deficiency notification letter, no State Noncompliance Notice will be issued. Thank you for your understanding and thank you for providing safe, sanitary and decent housing to the citizens of Washington State. 

Before the inspections:

  • The vendor will email the owner and property manager a notice of inspection 2 weeks before the proposed inspection date - the email will include the usual information that WSHFC would provide, including the WSHFC Property Questionnaire. Note that IRS regulations prohibit providing more than two weeks' notice in advance of an inspection.
  • Remember you must provide at least 48 hours written notice prior to the inspection date to every tenant in the property. However, management failure to provide advance written notice will not be grounds for canceling a LIHTC inspection.
  • The vendor will confirm the date a few days ahead of time by email or phone and will confirm their exact time of arrival before the inspection.

Day of inspection:

  • Upon arrival, the vendor will provide the property manager with a list of units to be inspected.
  • The vendor will use HUD's NSPIRE standards to inspect your property, writing up deficiencies and taking photos. The vendor will inspect the exterior, building systems, common areas and 10-20% of the residential units (depending on federal and/or state requirements).

WSHFC follow-up after inspection:

  • After the inspection, your property's Portfolio Analyst will email the owner and manager with a notice of the deficiencies found at the inspection and include a form which the owner can complete to confirm that all deficiencies are fixed.
  • When submitting your response to WSHFC's deficiency notice, provide the signed certification and back-up documents (copies of maintenance work orders, vendor invoices, etc.) as required by your Portfolio Analyst. Your Portfolio Analyst will provide an electronic submission form which you can use to submit all your documents; please do not mail any documents to the Commission's office.
  • Your property's Portfolio Analyst will interface directly with you to ensure that all deficiencies are resolved, and will issue a noncompliance notice if any deficiencies were found at the inspection (after providing a 90 day period to cure identified deficiencies).

Review of resident files:

  • The submission of resident qualification files is a required part of the inspection process. Your Portfolio Analyst will email you a list of units for which resident certification packages must be submitted. This may occur prior to or after the inspection takes place. Note that federal regulations prohibit the Commission from reviewing resident certifications for the same units that were visited at the inspection.
  • Within 10 business days of WSHFC's resident certifications request email, you must provide electronic copies of all required resident certifications. Your Portfolio Analyst will provide an electronic submission form you can use to submit your resident certifications; DO NOT email certs to the Commission OR mail/fax any resident certification packages to the Commission's office.

Resources for Common Problems

The following websites offer information about how to deal with some of the common deficiencies encountered during on-site inspections:

Common Problems

Specific Information for Residents

Residents should contact their Apartment Manager with any maintenance or repair requests. Most properties request that residents fill out a written work request.