HCCP Cheat Sheet 2026

The 30 highest-yield HCCP facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Under IRC §42(d)(2)(B), which of the following costs is specifically excluded from the eligible basis of an existing building acquired for LIHTC rehabilitation? → The acquisition cost of the building itself
2. A LIHTC project generates $10,000 in annual tax credits for 10 years. At a credit price of $0.92, what is the approximate equity raised? → $92,000
3. What quality metrics are most important in Tenant Eligibility? → Measurable outcomes, process compliance, and stakeholder satisfaction
4. After major energy efficiency renovations that significantly reduce tenant utility consumption, when and how should the utility allowance be adjusted? → The utility allowance should be updated to reflect reduced costs at the next annual review
5. What quality metrics are most important in Compliance Requirements? → Measurable outcomes, process compliance, and stakeholder satisfaction
6. What quality metrics are most important in Property Management? → Measurable outcomes, process compliance, and stakeholder satisfaction
7. Which federal form is used by LIHTC property owners to report the certification of qualified basis and eligible basis to the IRS annually? → Form 8586
8. Under IRC Section 42, a building is considered 'placed in service' for tax credit purposes in the year when which event occurs? → The building is ready and available for occupancy
9. Retainage on a LIHTC construction contract is typically released after which event? → Substantial completion and resolution of all punch-list items
10. A LIHTC investor's internal rate of return (IRR) analysis primarily values which stream of benefits? → Tax credits, tax losses, and residual cash flows over the holding period
11. Under IRS Revenue Procedure 94-57, how often must utility allowances for LIHTC units be updated? → At least annually
12. The HUD Utility Schedule Model, an IRS-approved utility allowance method, estimates costs based on which factors? → Local utility rates, unit size, and climate zone data
13. What is the purpose of a construction completion guaranty in a LIHTC transaction? → It obligates the guarantor to complete construction if the developer defaults
14. When a LIHTC property owner uses an energy consumption model to establish utility allowances, who must prepare the analysis? → A licensed engineer or energy auditor qualified to perform such studies
15. Which component is subtracted from total development cost to calculate the 'financing gap' that equity must fill? → Permanent loan proceeds plus other grants and soft debt
16. What is the first step in the application process for LIHTC funding? → Filing a preliminary application to the state housing finance agency
17. Which entity publishes the utility allowance schedule most commonly used as an approved source for LIHTC properties? → The local Public Housing Authority (PHA)
18. What is the primary purpose of standardized procedures in Tenant Eligibility? → To ensure consistency, safety, and quality across all practitioners
19. When calculating maximum gross rent for a 4-bedroom LIHTC unit at 50% AMI, which household size income limit is referenced? → 6 persons
20. What is the role of the “rent comparability study” in the financial analysis of an LIHTC project? → To compare the project's rental rates with similar properties in the area
21. Which approach is most effective for problem-solving in Property Management? → Systematic analysis followed by evidence-based decision making
22. What is the primary purpose of standardized procedures in Tax Credit Fundamentals? → To ensure consistency, safety, and quality across all practitioners
23. In a Housing Credit deal, the term 'hard costs' most specifically refers to which category of development expenses? → Construction labor and materials
24. Which of the following best describes 'credit pricing' in a tax credit transaction? → The cents-per-dollar investors pay for each dollar of tax credit
25. Maximum gross rents under Section 42 are set at what percentage of the applicable income limit divided by 12? → 30%
26. Under the Fair Housing Act, which of the following is considered a protected class at the federal level? → Familial status
27. For a 3-bedroom LIHTC unit, what imputed household size is used to look up the applicable income limit for rent purposes? → 4.5 persons
28. Which lease provision is critical for establishing clear community standards at a LIHTC property? → A detailed house rules addendum incorporated by reference into the lease
29. 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)
30. In a tax credit financial model, 'syndication costs' are classified under which category? → Soft costs