In today's digital age, Venmo and Cash App have become increasingly popular for transferring money and managing personal finances. However, when it comes to affordable housing programs such as the Low-Income Housing Tax Credit (LIHTC), it's important to understand how these apps may affect the verification of assets.
Assets, such as savings accounts or investments, are an important factor in determining a tenant's eligibility for LIHTC housing. Property owners are required to verify the assets of all tenants annually to ensure that they are still eligible for affordable housing. However, when assets are held in accounts managed through Venmo or Cash App, the verification process can become a bit more complicated.
The first issue that arises with Venmo and Cash App is the lack of traditional bank statements. While these apps may offer a record of transactions, they may not include all of the necessary information to verify an asset. Property owners may need to request additional documentation or statements from the individual's bank to ensure that their asset is accurately reflected.
Another issue with Venmo and Cash App is the potential for commingling of funds. For example, an individual may have both personal and business transactions on their account, making it difficult to determine which funds are considered an asset for LIHTC purposes. Property owners may need to review transactions in detail and ask for additional documentation to verify that the asset is not commingled with personal or business funds.
It's important for property owners to be aware of these potential issues and to have a clear policy in place for verifying assets held through Venmo and Cash App. This may include requesting additional documentation, reviewing transactions in detail, or working with the individual to separate their personal and business funds.
In conclusion, while Venmo and Cash App can be convenient for managing personal finances, they can create challenges when it comes to verifying assets for LIHTC compliance. Property owners must be aware of these potential issues and have a clear policy in place for verifying assets held through these apps. By doing so, they can ensure that they are accurately verifying assets and maintaining compliance with the LIHTC program.