Strong regulatory compliance is not only essential at affordable housing properties, it can mean a competitive advantage, says industry veteran Shannon Bodnar.
By integrating compliance into strategic planning and operations, owners can enhance funding opportunities and build long-term trust, according to the senior vice president of compliance at Pratum Cos., a firm that provides property management, compliance and leasing consulting, as well as acquisition and investment and advisory services.
“Over the past year, the most common compliance challenge we’ve observed at affordable housing properties has been the inconsistent implementation of key compliance policies and procedures—largely due to staffing shortages, high turnover, and limited training,” Bodnar says. “When staff is not fully equipped with up-to-date compliance knowledge, even well-designed systems can fall short in execution. This can lead to missed deadlines, inaccurate certifications, or documentation gaps that ultimately put properties at risk.”
Prior to joining Pratum, Bodnar was vice president of compliance and administration for Conifer Realty, where she oversaw compliance for over 15,000 units across multiple states for several affordable housing programs, including project-based rental assistance and low-income housing tax credits (LIHTCs). She was also the senior vice president of property management at Inlivian, previously known as the Charlotte Housing Authority.
What are a few emerging issues that bear watching?
One emerging issue is the rise of workforce housing programs at the local level. These programs aim to serve the “missing middle”—households who earn too much for traditional affordable housing but still struggle to afford market-rate units. Because these programs are hyper-local, there’s no national standard, which adds another layer of complexity to compliance.We’re also watching how technology, particularly artificial intelligence (AI) and automation, is being cautiously adopted in leasing and documentation workflows. There’s growing interest, but compliance risk, especially around fair housing, is keeping most operators from going all-in.
Share a new regulation or regulation change that affordable housing owners should be aware of.
The most common challenge we’ve seen is inconsistent implementation of the Housing Opportunity Through Modernization Act (HOTMA). Because the guidance and deadlines have shifted multiple times, properties are stuck in a state of limbo. We now have our LIHTC state agencies in full implementation, while the Department of Housing and Urban Development (HUD) pushed back implementation to Jan. 1, 2026. This leaves some communities partially or fully following the HOTMA policies, while others are waiting for HUD-approved forms or software updates that haven’t materialized. This patchwork approach creates confusion not only for property staff but also for residents, who may encounter different documentation requirements from one property to the next.
To navigate this, owners should adopt a “compliance readiness” mindset. That means documenting their decisions, communicating policies and implementation timelines clearly to staff, and partnering with compliance experts to monitor regulatory updates and inter-agency alignment. Intentional planning with strong communication is key.
Are finance partners changing their approach to compliance, and what data do they want to see?
Absolutely. Finance partners are becoming more compliance-conscious, especially in layered deals involving tax credits, project-based assistance, and local funding. They want to see clean, audit-ready files and are asking deeper questions about how compliance is being operationalized at the site level.
There’s also growing interest in data transparency—metrics like certification timeliness, income verification error rates, and documentation completeness are becoming part of investor due diligence. Owners who can produce and interpret this data have a competitive edge.
What are a few steps that owners and property managers can take to have better compliance control?
- Involve compliance early—ideally before deals are closed. This ensures regulations are accounted for in operations and reporting from day one;
- Invest in ongoing training—not just onboarding. At Pratum, we offer weekly lunch-and-learn sessions and bite-sized modules to keep teams sharp;
- Centralize your data—use one platform as the single source of truth to minimize errors. Ensure the compliance settings reflect all regulatory requirements;
- Document everything—especially when implementing new policies including HOTMA discretionary policies. Having clear internal rationale can protect owners during audits; and
- Hold regular compliance reviews—treat compliance like a performance function that continuously needs to be monitored.
How can compliance serve as a competitive advantage in today’s affordable housing landscape?
When compliance is positioned as a core strength, not just a regulatory necessity, it becomes a powerful competitive differentiator. We’ve seen developers and property managers secure increased funding, partnerships, and public trust by proactively showcasing their compliance strategy.
One of the most impactful shifts is giving compliance a seat at the table early, during deal structuring and predevelopment planning. This avoids costly missteps down the line and allows teams to optimize rent structures, streamline certification processes, and ensure layered funding sources are aligned from day one.
In today’s market, where projects are increasingly complex and capital is watching closely, a strong compliance infrastructure is a signal of operational excellence and long-term viability.
