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Audit Finds Delaware Complied with 1602 LIHTC Exchange Rules

Wednesday, July 16, 2014 - 7:00AM

The Department of the Treasury’s Office of Inspector General last week released an audit of the Delaware State Housing Authority (DSHA) compliance with the Section 1602 low-income housing tax credit exchange program. The audit found that DSHA substantially met the requirements for receiving its 1602 program award and for allocating those funds to low-income housing developments. However, it found that a Delaware state law prevented DSHA from fulfilling the 1602 program requirement that each state housing credit agency open a financial institution account to receive and disburse program funds. The audit determined that DSHA still met the overall financial management requirement by tracking tax credit exchange program funds in a separate general ledger account.

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