HCCP Verified Multiple Choice and Conceptual
Actual Emended Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. Which of the following best defines a HUD-designated Difficult to Develop Area
(DDA)?
A. An area with unusually low construction costs
B. An area with high construction, land, or utility costs relative to AMGI
C. A metropolitan area with declining population
D. A rural county with limited rental housing
Answer: B
2. What benefit does a DDA designation provide to LIHTC projects?
A. Extended compliance period of 25 years
B. 30% boost in eligible basis
C. Exemption from student rules
D. Exemption from annual tenant recertifications
Answer: B
3. Which federal agency designates DDAs annually?
A. IRS
B. HUD
C. USDA
D. State HFA
Answer: B
4. DDAs are recalculated how often?
A. Every 5 years
B. Annually
C. Every 2 years
,D. Once during a project’s compliance period
Answer: B
5. If a property is located in a DDA, which portion of the project benefits from the
eligible basis increase?
A. Only the market-rate units
B. Only the employee units
C. Only the LIHTC-qualified units
D. The entire building if placed in service during designation
Answer: D
6. Which of the following is not included in eligible basis?
A. Land acquisition
B. Construction hard costs
C. Acquisition of an existing building
D. Eligible soft costs (e.g., architect fees)
Answer: A
7. What does the term “eligible basis” represent in LIHTC projects?
A. Total operating expenses
B. Land cost + soft costs only
C. The portion of project cost used to calculate tax credits
D. Total project budget, including reserves
Answer: C
8. Which type of cost must be excluded from eligible basis if paid with federal
grant funds?
A. Developer fees
B. Operating reserves
C. Federal grant-funded costs
D. Construction loans
Answer: C
9. A property located in a DDA with $10 million in eligible basis may claim what
adjusted eligible basis for credit calculation?
, A. $12 million
B. $11 million
C. $15 million
D. $13 million
Answer: A (30% increase)
10. Which unit type is included in eligible basis but excluded from both numerator
and denominator of the applicable fraction?
A. Market-rate units
B. Employee units
C. Vacant LIHTC units
D. Model units
Answer: B
11. Gross Rent includes which of the following?
A. Market rate only
B. Resident rent + utility allowance + mandatory fees
C. Security deposits and pet fees
D. Resident rent without utility allowance
Answer: B
12. Which type of fee cannot be included in Gross Rent for LIHTC compliance?
A. Trash removal
B. Mandatory garage fee
C. Refundable security deposit
D. Utility allowance
Answer: C
13. True or False: Optional amenities such as cable TV are always counted in Gross
Rent.
Answer: False
14. If a unit has a gross rent exceeding the LIHTC maximum, the unit is:
A. Still eligible if tenant is income-qualified
B. Noncompliant for that period
Actual Emended Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. Which of the following best defines a HUD-designated Difficult to Develop Area
(DDA)?
A. An area with unusually low construction costs
B. An area with high construction, land, or utility costs relative to AMGI
C. A metropolitan area with declining population
D. A rural county with limited rental housing
Answer: B
2. What benefit does a DDA designation provide to LIHTC projects?
A. Extended compliance period of 25 years
B. 30% boost in eligible basis
C. Exemption from student rules
D. Exemption from annual tenant recertifications
Answer: B
3. Which federal agency designates DDAs annually?
A. IRS
B. HUD
C. USDA
D. State HFA
Answer: B
4. DDAs are recalculated how often?
A. Every 5 years
B. Annually
C. Every 2 years
,D. Once during a project’s compliance period
Answer: B
5. If a property is located in a DDA, which portion of the project benefits from the
eligible basis increase?
A. Only the market-rate units
B. Only the employee units
C. Only the LIHTC-qualified units
D. The entire building if placed in service during designation
Answer: D
6. Which of the following is not included in eligible basis?
A. Land acquisition
B. Construction hard costs
C. Acquisition of an existing building
D. Eligible soft costs (e.g., architect fees)
Answer: A
7. What does the term “eligible basis” represent in LIHTC projects?
A. Total operating expenses
B. Land cost + soft costs only
C. The portion of project cost used to calculate tax credits
D. Total project budget, including reserves
Answer: C
8. Which type of cost must be excluded from eligible basis if paid with federal
grant funds?
A. Developer fees
B. Operating reserves
C. Federal grant-funded costs
D. Construction loans
Answer: C
9. A property located in a DDA with $10 million in eligible basis may claim what
adjusted eligible basis for credit calculation?
, A. $12 million
B. $11 million
C. $15 million
D. $13 million
Answer: A (30% increase)
10. Which unit type is included in eligible basis but excluded from both numerator
and denominator of the applicable fraction?
A. Market-rate units
B. Employee units
C. Vacant LIHTC units
D. Model units
Answer: B
11. Gross Rent includes which of the following?
A. Market rate only
B. Resident rent + utility allowance + mandatory fees
C. Security deposits and pet fees
D. Resident rent without utility allowance
Answer: B
12. Which type of fee cannot be included in Gross Rent for LIHTC compliance?
A. Trash removal
B. Mandatory garage fee
C. Refundable security deposit
D. Utility allowance
Answer: C
13. True or False: Optional amenities such as cable TV are always counted in Gross
Rent.
Answer: False
14. If a unit has a gross rent exceeding the LIHTC maximum, the unit is:
A. Still eligible if tenant is income-qualified
B. Noncompliant for that period
