The FDIC established the Affordable Housing Disposition Program (AHP) to enhance its ability to sell single-family and multifamily properties that will benefit Low-Income families. In return for purchasing a property at a price below the fair market value, purchasers agreed to make units available to Low and Very Low-Income households at affordable rents. The rent and income restrictions are designed to ensure that the property serves families needing affordable housing.

AHC monitors compliance of FDIC properties in the state of Minnesota.

Download the FDIC Owner's Manual

FDIC compliance can be broken down into 5 main categories:

  • 1 Qualifying Units
  • 2 Maximum Rent and Income Limits
  • 3 Tenant File Requirements
  • 4 Income and Asset Documentation
  • 5 Annual Reporting

New to FDIC?

Your goal is to rent a specific number of units at an affordable price to “low income” or “very low income” households. To accomplish this, you need to know the rent limit that determines an affordable rent, as well as the income limit that defines a low and very low-income household. Next, you want to assure the household has signed required documents and that you have appropriately verified and documented income and assets. In addition, it is required you report the status of your property to AHC on an annual basis.

AHC is here to educate and guide you through this process! Our monitoring efforts are meant to assist property managers and owners by providing insight on performance and recommendations for improvement of program implementation.

FDIC Compliance Forms & Reporting Tools

Download compliance forms; including annual report forms, tenant release & consent forms, under $5000 certification, upload instructions and many others.


Frequently Asked Questions

I am preparing to take over ownership or management of an FDIC property. What should I do first?
  • Report this change to AHC
  • Review the LURA (contractual agreement) to become familiar with your required number of Set-Aside or Qualified Units
  • Prepare a management plan that incorporates FDIC compliance procedures and required documents and forms
  • Train all persons who will be involved in applicant intake, property management and reporting.
If I have questions about the proper way to calculate a tenant’s annual income, where can I go to find answers?

Under FDIC, a tenant’s annual income is calculated according to the method used to determine gross annual income for HUD’s Section 8 Program. This method differs from the way a household’s income is calculated for tax purposes. Owners/managers should refer to the Chapter 4 of the FDIC Owners Manual. For additional information, contact AHC.

Also, the local Section 8 Administrator or Public Housing Authority may be able to provide some guidance.

When does a unit actually become a “qualifying unit”?

When that unit is occupied by an income eligible tenant (who has completed a certification form and whose information has been verified) who has executed a lease within the rent limit.

What does anticipated annual income mean?

Owners/managers are required to anticipate the amount of income a household will receive during the coming 12-month period. Generally, this amount is calculated by estimating the family’s annual income using current income and assets. However, if changes from current circumstances can be verified (e.g., an approved raise, an expected bonus, a change in the number of overtime hours to be worked) these should also be considered in anticipating annual income.

AHP also requires including income from assets in annual income. Can you give some examples of what is considered an asset and what is not?

Under AHP, there is no limitation on the amount of assets an eligible household can own. But, anticipated income from assets must be included in the calculation of annual income. Section 8 program rules specify the types of assets to be considered. If the household has less than $5000 in assets, use the short-cut to verify assets. This is the Under $5000 Asset Certification form.

Is a telephone verification valid for purposes of verifying employment income?

Third-party written verifications or first-hand documentation (e.g., paycheck stubs) are preferred. However, in cases where these methods are not feasible, telephone verifications may be used as long as management staff complete, sign, and date a form which identifies the third party oral source.

When verifying the income of tenants with a Section 8 Certificate or Voucher, is the income verification of the housing authority acceptable?

Yes. Owners/managers can satisfy AHP verification requirements by obtaining copies of the housing authority’s verification documents. Another option is to have the authority provide a letter stating that the household’s verified annual gross income does not exceed an amount equal to the applicable AHP income limit. These tenants still must execute a proper AHP Tenant Income Certification (TIC) Form.

When do the income limits used to determine tenant eligibility change, and how do I obtain the new limits?

AHP income and rent limits are updated each year when HUD publishes its revised figures for area median incomes. Generally, these are released in the Spring each year. Monitoring agencies (AHC) will provide owners/managers with updated limits as they become available year to year from FDIC.

If a change in household status or household income occurs between annual recertification, is the tenant required to advise the manager? Is the manager required to monitor these changes?

No, unlike some HUD programs, tenants are only required to report changes in household income or composition at the time their eligibility is re-certified. Likewise, managers are not required to monitor household changes that occur between re-certifications.

Does AHP have occupancy standards specifying the unit size (i.e., number of bedrooms) appropriate for a given household size?

No. Owners/managers are expected to establish their own occupancy standards and apply them consistently throughout the property, and to comply with state or local law regarding occupancy standards, if applicable

Naomi Hrncir

Naomi Hrncir


The Program Coordinator oversees a workload of approximately 70 projects and is responsible for reviewing and ensuring program compliance of annual reports and supporting documents submitted by project owners and managers. Duties also include reviewing tenant files for compliance with program rules and regulations and sufficient support of tenant eligibility, preparing review letters, and evaluating owner/management responses for adequacy of any clarification and/or corrective actions to annual reports, tenant files, UPCS findings and/or supporting documents.

Questions? Contact Naomi at

Additional Resources

(Handbook 4350.3) Rev 1. Change 4. Chapter 5 of the HUD Occupancy Manual Requirements of Subsidized Multifamily Housing Programs is used for determining income from income sources and assets. Information on deductions, allowances, and calculating rent does not apply to Section 42.