# Prop. Treas. Reg. § 1.42-5: Monitoring compliance with low-income housing credit requirements.

Proposed regulation, not in force. REG-123027-19, 85 FR 40610, published 2020-07-07 <https://www.federalregister.gov/documents/2020/07/07/2020-14555/section-42-low-income-housing-credit-compliance-monitoring-regulations>. Interprets 26 U.S.C. § 42.

Par. 2. Amend § 1.42-5 by revising paragraphs (c)(2)(iii)(B) and (h) to read as follows:

* * * * *

(c) * * *

(2) * * *

(iii) * * *

(B) Number of low-income units. The minimum number of low-income units for which the Agency must conduct on-site inspections and low-income certification review is the lesser of—

( 1 ) 20 percent of the low-income units in the low-income housing project, rounded up to the nearest whole number of units; or

( 2 ) the Minimum Unit Sample Size set forth in the following Low-Income Housing Credit Minimum Unit Sample Size Reference Chart:

**Table 1 to Paragraph (c)(2)(iii)**

| Number of low-income units in the low-income housing project | Number of low-income units selected for inspection or for low-income certification review (minimum unit sample size) |
| --- | --- |
| 1 | 1 |
| 2 | 2 |
| 3 | 3 |
| 4 | 4 |
| 5-6 | 5 |
| 7 | 6 |
| 8-9 | 7 |
| 10-11 | 8 |
| 12-13 | 9 |
| 14-16 | 10 |
| 17-18 | 11 |
| 19-21 | 12 |
| 22-25 | 13 |
| 26-29 | 14 |
| 30-34 | 15 |
| 35-40 | 16 |
| 41-47 | 17 |
| 48-56 | 18 |
| 57-67 | 19 |
| 68-81 | 20 |
| 82-101 | 21 |
| 102-130 | 22 |
| 131-175 | 23 |
| 176-257 | 24 |
| 258-449 | 25 |
| 450-1,461 | 26 |
| 1,462-9,999 | 27 |

* * * * *

(h) Applicability dates. The requirements in paragraph (c)(2)(iii)(B) of this section apply beginning after the date final regulations are published in the Federal Register .