Tenant income certification (TIC): guide & FAQ

What is a tenant income certification?

A Tenant Income Certification (TIC) is the official record that a household's income falls within the limits required to live in an income-restricted (affordable) apartment. It captures who lives in the unit, their combined annual household income, the assets they hold, and the program's income and rent limits. Both the resident and the owner or manager sign it to certify that everything is accurate.

It is the most important compliance document in affordable housing. When a monitoring agency, investor or auditor wants proof that a unit is occupied by an eligible household, the TIC is the first thing they ask for.

Who has to complete a tenant income certification?

Any household moving into, or living in, a unit financed through an affordable-housing program generally needs a TIC. That includes properties funded through:

• The Low-Income Housing Tax Credit (LIHTC) program, governed by Section 42 of the Internal Revenue Code
• Tax-exempt bond financing
• HUD programs such as project-based Section 8 and Section 236
• The HOME Investment Partnerships Program and other state and local funding sources

Both sides sign. The resident attests that the household and income information is complete and correct; the owner attests that the household was found eligible under the program's rules.

How does the certification process work?

1. Household details. The household lists everyone who will live in the unit and their sources of income.
2. Income and asset documents. The household provides proof of income, such as paystubs, benefit award letters or self-employment records, plus information about assets.
3. Verification. The manager verifies income, often through third-party verification, and calculates annualized household income.
4. Compare to the limit. Annual income is compared with the income limit for the household size, county and program year.
5. Certify and sign. If the household is under the limit, both parties sign the TIC and it goes in the resident file.

What income documents are needed?

Requirements vary by program and state monitoring agency, but households are typically asked for:

• Recent, consecutive paystubs (commonly four to six weeks' worth)
• Award or benefit letters for Social Security, SSI, pensions, unemployment or child support
• Self-employment records or a profit-and-loss statement for anyone self-employed
• Asset statements for bank accounts, retirement accounts and similar holdings

How often is income recertification required?

Households are certified at move-in (the initial certification) and then recertified on the program's schedule, which for most programs means every year, on or before the anniversary of the initial certification.

One important exception: for 100%-affordable LIHTC buildings, the IRS relaxed the annual income recertification requirement after the first year, though state documentation rules still apply. Mixed-income properties and most non-LIHTC programs still recertify every year. Always confirm with your monitoring agency.

What happens if a certification has errors?

Errors can lead to a noncompliance finding, reported to the IRS on Form 8823 for LIHTC properties, which can put tax credits at risk. The most common causes:

• Using the wrong year's income limit, or the wrong county or area limit
• Math errors annualizing income, such as miscounted pay periods or overtime
• Missing or unsigned pages, or a signature without a date
• Incomplete documentation in the file to back up the numbers
• A missed recertification deadline

Nearly all of these are avoidable with a guided process that pulls the correct limit automatically and checks the math before anyone signs.

Can a tenant income certification be completed online?

Yes. With Affordabletic, residents complete and e-sign their portion online on any device, a built-in worksheet annualizes their paystubs and cross-checks the figures against the correct county and year limits, and the fully executed certification comes back to the manager in minutes.