LIHTC Overview of California Low-Income Housing Tax Credit Program

Question 1

What is the main purpose of the Low-Income Housing Tax Credit (LIHTC) program in California?

Accepted Answer

To promote affordable housing development

Answer

To increase luxury housing.

Answer

To reduce housing taxes for all homeowners.

Answer

To fund commercial real estate projects.

Question 2

Who administers the LIHTC program in California?

Accepted Answer

California Tax Credit Allocation Committee

Answer

California Department of Education.

Answer

Federal Housing Authority.

Answer

California Department of Transportation.

Question 3

What type of projects qualify for LIHTC?

Accepted Answer

Affordable rental housing projects

Answer

Commercial office buildings.

Answer

Luxury condominiums.

Answer

Hotels and resorts.

Question 4

How is the amount of tax credit determined in LIHTC?

Accepted Answer

Calculated from eligible costs and rates

Answer

Fixed amount per unit.

Answer

Random allocation.

Answer

Based on tenant income.

Question 5

What is the compliance period for LIHTC projects?

Accepted Answer

15 years

Answer

5 years.

Answer

30 years.

Answer

No compliance period.

Question 6

What income limits apply to tenants in LIHTC units?

Accepted Answer

At or below AMI limits

Answer

Above median income.

Answer

Any income level.

Answer

Only below poverty level.

Question 7

Can LIHTC credits be sold or transferred?

Accepted Answer

Yes, credits can be sold

Answer

No, they are non-transferable.

Answer

Only transferred within the same project.

Answer

Only given as grants.

Question 8

What happens if a LIHTC project fails to comply with program rules?

Accepted Answer

Credits recaptured and penalties

Answer

Nothing.

Answer

Additional credits awarded.

Answer

Project gets automatic extension.

Question 9

How does LIHTC benefit communities?

Accepted Answer

By providing affordable housing

Answer

By increasing housing costs.

Answer

By reducing housing availability.

Answer

By displacing low-income residents.