HCCP HCCP Site and Unit Standards 1 — Questions and Answers
Question 1: Under the Low-Income Housing Tax Credit program, what is the minimum percentage of units that must meet the physical standards for accessible design in a new construction project subject to the Fair Housing Act?
- 10% (Correct answer)
- 5%
- 25%
- All ground-floor units
Correct answer: 10%
The Fair Housing Act requires that at least 10% of units in covered multifamily dwellings meet accessible design and construction requirements.
Question 2: Which physical inspection protocol is most commonly used by state housing finance agencies to evaluate LIHTC property condition during compliance monitoring?
- UPCS (Uniform Physical Condition Standards) (Correct answer)
- HQS (Housing Quality Standards)
- REAC Score System
- ADA Accessibility Checklist
Correct answer: UPCS (Uniform Physical Condition Standards)
UPCS (Uniform Physical Condition Standards) is the inspection protocol most commonly adopted by state agencies for LIHTC compliance monitoring.
Question 3: When a LIHTC unit fails a physical inspection, what is the owner's typical obligation under IRS compliance rules?
- Correct the deficiency within a reasonable time frame set by the state agency (Correct answer)
- Immediately evict the current tenant
- Remove the unit from the low-income set-aside
- File Form 8823 within 30 days
Correct answer: Correct the deficiency within a reasonable time frame set by the state agency
Owners must correct physical deficiencies within a state agency-specified timeframe to restore the unit to compliance and avoid credit recapture.
Question 4: Under LIHTC rules, which of the following amenities, if provided exclusively to market-rate tenants, would most likely constitute a violation?
- Fitness center access restricted from low-income tenants (Correct answer)
- On-site management office
- Laundry facility available to all tenants
- Common area lobby
Correct answer: Fitness center access restricted from low-income tenants
Providing common amenities exclusively to market-rate tenants while denying them to LIHTC tenants violates the program's non-discrimination and comparability requirements.
Question 5: What does the 'suitable for occupancy' standard require for a LIHTC unit to count toward the property's qualified basis?
- The unit must be habitable and meet local health and safety codes (Correct answer)
- The unit must have been leased for at least 12 months
- The unit must have passed a REAC inspection
- The unit must be fully furnished
Correct answer: The unit must be habitable and meet local health and safety codes
A LIHTC unit must be suitable for occupancy — meaning habitable and compliant with local health and safety codes — to be included in the qualified basis.
Question 6: If a LIHTC property has common areas that deteriorate significantly, which IRS form must the state agency file to report the noncompliance?
- Form 8823 (Correct answer)
- Form 8609
- Form 1099-MISC
- Form 8586
Correct answer: Form 8823
State agencies report noncompliance, including physical deterioration of common areas, to the IRS using Form 8823 (Low-Income Housing Credit Agencies Report of Noncompliance).
HCCP HCCP Site and Unit Standards 1
Under the Low-Income Housing Tax Credit program, what is the minimum percentage of units that must meet the physical standards for accessible design in a new construction project subject to the Fair Housing Act?