HUD-financed affordable housing projects must meet strict compliance standards, including financial statement audits, tax credit filings and cost certifications. Grassi delivers the independent audits and compliance required under the U.S. Department of Housing and Urban Development (HUD) and Low-Income Housing Tax Credit (LIHTC) programs.

With decades of experience in nonprofits, healthcare and real estate, we help organizations protect funding, ensure accountability and maintain focus on their mission.

Our HUD & LIHTC Services

Grassi supports nonprofit and commercial entities with HUD financing or funding contracts, as well as nonprofit sponsors and investors in affordable and senior housing. Our services include:

• Financial Statement Audits: Conducted in accordance with the HUD Consolidated Audit Guide, Government Auditing Standards and Uniform Guidance for nonprofit entities.
• Tax Planning and Return Preparation: Compliance-focused tax support for both federal and state reporting obligations.
• REAC Filings and State Housing Tax Credit Certifications: Preparation and review of HUD Real Estate Assessment Center (REAC) submissions, along with required housing credit compliance filings.
• Cost Certifications: Verification of eligible costs for HUD-financed construction and rehabilitation projects.

Beyond Compliance

HUD and LIHTC compliance is only one piece of an organization’s financial health. Grassi helps clients take a broader view by providing services that strengthen operations and support long-term sustainability. In addition to attest services, our advisors assist with:

• Tax advisory and planning
• Operational and workflow improvement
• Risk management and internal controls
• Strategic planning and sustainability consulting

This approach helps organizations stay compliant today while building a stronger foundation for the future.

Frequently Asked Questions

What is HUD compliance?
HUD compliance encompasses the financial, audit and reporting requirements associated with HUD-financed projects. This includes annual financial statement audits, cost certifications and REAC submissions.

Why is HUD and LIHTC compliance important?
Compliance ensures continued eligibility for funding, protects an organization from penalties and demonstrates accountability to regulators, lenders and community stakeholders.

Which organizations need HUD compliance services?
Nonprofits, healthcare providers and commercial entities with HUD financing or ongoing funding contracts, as well as sponsors and investors in affordable and senior housing programs.

How does Grassi support HUD compliance?
We provide independent audits and compliance services in line with HUD and LIHTC requirements, while also offering tax, operational and strategic support to help organizations build long-term sustainability.