Tax Credit Specialist QUESTIONS WITH
CORRECT ANSWERS
Who is responsible for most of the regulatory administration of the low-income housing
tax credit program? - Correct answerState Housing Finance Agencies (SHFA)
The initial compliance period for LIHTC properties combined with the Extended Use
Period must be for a minimum period of affordability at: - Correct answer30 Years
The LIHTC regulations require that HUD guidance for properly identifying and
calculating income and assets be followed according to : - Correct answerHud
Handbook 4350.3 REV-1
Use of HUD's EIV system is: - Correct answerProhibited for LIHTC income
verifications
LIHTC legislation provisions include - Correct answerHERA, ARRA, VAWA
The first 3 stages in the life of a LIHTC property generally occur whithin: - Correct
answer3 Years
A reservation letter received at the end of the application stage for LIHTC means that -
Correct answerA portion of that years tax credits will be held in reserve for a project
Carryover Allocations are issued by State Housing Federal Agency (SHFA) for LIHTC
projects when: - Correct answerTheir 10% tests have been met
Acquisition/rehab projects generally place in service at acquisition and are given -
Correct answer120 days before acquisition
120 days after acquisition
240 days surrounding the acquisition
In the project example from Appendix C (Course Manual pg. 525), the equity from the
credit sale means that: - Correct answerThe tax credit projects mortgage will be less
than that of the conventional property providing less debt and greater affordability
When conducting physical inspections for LIHTC, most state agencies use: - Correct
answerHUD's Uniform Physical Condition Standards (UPCS)
The two most important line items for management purposes under Part ll of IRS form
8609 are: - Correct answer8B and 10C
, IRS form 8823 is used to: - Correct answerReport non-compliance to the IRS by the
state agency
A Tax credit disallowance prevents credits from being claimed by the owner - Correct
answerFor the current year
LIHTC resyndication means that: - Correct answerOwners receive a second
allocation of tax credits for an existing LIHTC property
For LIHTC, an individual's income is determined in a manner consistent with: - Correct
answerDetermination of income under Section 8 of the US housing act of 1937
IRS Notice 88-80 (Course manual pg. 447)
Income for foster children under the age of 18 is counted except for: - Correct
answerEmployment Income
Figure 5-2, Page 5-8 (Course Manual pg. 86)
When Section 8 assistance is provided for a LIHTC tenant and they are receiving
educational scholarships or grants, then: - Correct answerAll financial assistance in
excess of tuition and mandatory fees is included in annual income, with two exceptions:
1. Over age 23 with dependent child
2. Living with parents who are receiving assistance
Paragraph 5-6E, Pg. 5-11 (Course Manual pg. 89)
Students not receiving section 8 assistance: - Correct answerDon't include student
financial assistance in annual income
Paragraph 5-6E, Pg. 5-11 (Course Manual pg. 89)
Annualizing Anticipated Annual Full-time employment income - Correct
answerHourly: Wages x 40 hours x 52 weeks
Weekly: Wages x 52
Bi-weekly: Wages x 26
Semi-monthly: Wages x 24
Monthly: Wages x 12
Paragraph 5-5B3 Page 5-6 (Course Manual pg. 84)
Income verification for LIHTC must be conducted according to: - Correct answerA
standard pf sufficiency as determined by the state housing finance agency
CORRECT ANSWERS
Who is responsible for most of the regulatory administration of the low-income housing
tax credit program? - Correct answerState Housing Finance Agencies (SHFA)
The initial compliance period for LIHTC properties combined with the Extended Use
Period must be for a minimum period of affordability at: - Correct answer30 Years
The LIHTC regulations require that HUD guidance for properly identifying and
calculating income and assets be followed according to : - Correct answerHud
Handbook 4350.3 REV-1
Use of HUD's EIV system is: - Correct answerProhibited for LIHTC income
verifications
LIHTC legislation provisions include - Correct answerHERA, ARRA, VAWA
The first 3 stages in the life of a LIHTC property generally occur whithin: - Correct
answer3 Years
A reservation letter received at the end of the application stage for LIHTC means that -
Correct answerA portion of that years tax credits will be held in reserve for a project
Carryover Allocations are issued by State Housing Federal Agency (SHFA) for LIHTC
projects when: - Correct answerTheir 10% tests have been met
Acquisition/rehab projects generally place in service at acquisition and are given -
Correct answer120 days before acquisition
120 days after acquisition
240 days surrounding the acquisition
In the project example from Appendix C (Course Manual pg. 525), the equity from the
credit sale means that: - Correct answerThe tax credit projects mortgage will be less
than that of the conventional property providing less debt and greater affordability
When conducting physical inspections for LIHTC, most state agencies use: - Correct
answerHUD's Uniform Physical Condition Standards (UPCS)
The two most important line items for management purposes under Part ll of IRS form
8609 are: - Correct answer8B and 10C
, IRS form 8823 is used to: - Correct answerReport non-compliance to the IRS by the
state agency
A Tax credit disallowance prevents credits from being claimed by the owner - Correct
answerFor the current year
LIHTC resyndication means that: - Correct answerOwners receive a second
allocation of tax credits for an existing LIHTC property
For LIHTC, an individual's income is determined in a manner consistent with: - Correct
answerDetermination of income under Section 8 of the US housing act of 1937
IRS Notice 88-80 (Course manual pg. 447)
Income for foster children under the age of 18 is counted except for: - Correct
answerEmployment Income
Figure 5-2, Page 5-8 (Course Manual pg. 86)
When Section 8 assistance is provided for a LIHTC tenant and they are receiving
educational scholarships or grants, then: - Correct answerAll financial assistance in
excess of tuition and mandatory fees is included in annual income, with two exceptions:
1. Over age 23 with dependent child
2. Living with parents who are receiving assistance
Paragraph 5-6E, Pg. 5-11 (Course Manual pg. 89)
Students not receiving section 8 assistance: - Correct answerDon't include student
financial assistance in annual income
Paragraph 5-6E, Pg. 5-11 (Course Manual pg. 89)
Annualizing Anticipated Annual Full-time employment income - Correct
answerHourly: Wages x 40 hours x 52 weeks
Weekly: Wages x 52
Bi-weekly: Wages x 26
Semi-monthly: Wages x 24
Monthly: Wages x 12
Paragraph 5-5B3 Page 5-6 (Course Manual pg. 84)
Income verification for LIHTC must be conducted according to: - Correct answerA
standard pf sufficiency as determined by the state housing finance agency
