HCCP HCCP Annual Certification Procedures 2

Question 1

Under the 'available unit rule,' what must a LIHTC owner do when a tenant's income rises above 140% of the applicable income limit?

Accepted Answer

Rent the next available unit of comparable or smaller size to an income-qualified household

Answer

When a tenant's income exceeds 140% of the applicable limit, the next available comparable unit must be rented to an income-qualified tenant to maintain the set-aside.

Question 2

What documentation must LIHTC owners retain for each tenant to support annual compliance certifications?

Accepted Answer

Tenant Income Certification, verifications of income and assets, and student status documentation

Answer

Owners must retain the Tenant Income Certification along with third-party income and asset verifications and student status documentation for each household.

Question 3

In a LIHTC project using the income-averaging set-aside election, what is the minimum average AMI percentage that must be maintained across designated units?

Accepted Answer

60% of AMI

Answer

Under the income-averaging election, the average income limit across all designated units must be 60% of AMI or less, with individual units ranging from 20% to 80% of AMI.

Question 4

What is the consequence of an owner failing to conduct required tenant annual recertifications?

Accepted Answer

The affected units may be treated as noncompliant and reported to the IRS on Form 8823

Answer

Failure to complete required annual recertifications is a compliance violation that the state agency must report to the IRS using Form 8823.

Question 5

How long must LIHTC owners retain tenant files and compliance records after the end of the compliance period?

Accepted Answer

At least 6 years after the due date of the owner's tax return for the last year of the compliance period

Answer

IRS rules require LIHTC owners to retain compliance records for at least 6 years after the due date of the owner's federal tax return for the last year of the compliance period.

(HCCP) Housing Credit Certified Professional Practice Test

(HCCP) Housing Credit Certified Professional Practice Test

HCCP HCCP Annual Certification Procedures 2