The Housing Credit Certified Professional (HCCP) credential is awarded by the National Association of Home Builders (NAHB) to professionals who demonstrate mastery of the Low-Income Housing Tax Credit (LIHTC) program under Section 42 of the Internal Revenue Code. Our free HCCP practice test PDF gives you a printable set of exam-style questions covering every domain tested on the HCCP examination.
Download once and study anywhere — on the train, at the office, or between site visits. The PDF covers income and rent limits, tenant certification procedures, eligible basis calculations, compliance monitoring, and the Section 8 interaction rules that appear most often on the exam.
The HCCP examination tests your working knowledge of the LIHTC program from development to ongoing compliance. Below are the core topic areas you need to master.
You must understand Section 42 of the IRC in depth — the difference between 9% competitive credits allocated by state Housing Credit Agencies and 4% credits paired with tax-exempt bond financing, Qualified Allocation Plans (QAPs), placed-in-service requirements, the 10-year credit period, the 15-year compliance period, and the 30-year extended use commitment required under most state regulatory agreements.
Exam questions focus on Area Median Income (AMI) set-aside elections, HUD income limit tables, gross rent limit calculations (30% of applicable income limit), utility allowance methodology and how it reduces allowable tenant rent, and income calculation rules for certification — including anticipated annual income, proper treatment of assets over $5,000, and imputed income from those assets.
You are tested on initial income certification requirements (income documentation, third-party verification, asset calculation), annual recertification obligations, the general student rule and its statutory exceptions, required interim certifications (income changes, household composition changes), and proper move-in and move-out procedures for LIHTC units.
Questions cover which costs belong in eligible basis — hard construction, architect and engineering fees, developer fee inclusions — and how the applicable fraction is calculated using the ratio of qualified LIHTC units to total units or total square footage. You must know how the minimum set-aside election constrains the applicable fraction and affects the credit amount.
State Housing Credit Agencies monitor LIHTC properties and file IRS Form 8823 to report noncompliance. Exam questions address the most common noncompliance issues — over-income tenants, extended unit vacancies, habitability violations, and failure to recertify — as well as correction periods, physical inspection standards, and the available unit rule that governs what happens when an existing qualified tenant becomes over-income.
Many LIHTC properties layer additional subsidies. You need to know how project-based Section 8 rental assistance interacts with LIHTC income and rent limits, how HOME funds can be combined with LIHTC credits, and how overlapping income limits from multiple federal programs are reconciled at the unit level.
The downloadable PDF is perfect for offline review, but our interactive HCCP practice test gives you instant scoring and answer explanations after every question. Use the PDF to build familiarity with the material, then shift to online timed tests as your exam date approaches to simulate real exam conditions and identify any remaining weak areas before test day.
Try these questions from our free Housing Credit Certified Professional practice tests. The correct answer and an explanation follow each question.
A general contractor submits a change order that increases total construction costs by 8%. How does this typically affect the LIHTC basis?
Answer: B. It may increase eligible basis if the costs are depreciable and part of the qualified building
Depreciable construction costs that are part of the qualified low-income building can increase eligible basis, subject to the allocating agency's review.
What is a Qualified Allocation Plan (QAP)?
Answer: B. A state-specific plan that outlines how tax credits will be allocated to projects.
A Qualified Allocation Plan (QAP) is a crucial document developed by each state's housing finance agency. It details the specific criteria and priorities the state will use to evaluate and select projects for Low-Income Housing Tax Credit (LIHTC) allocations. The QAP ensures that tax credits are distributed strategically to projects that best meet the state's affordable housing needs and policy goals.
Which of the following is NOT an IRS-approved source for utility allowances under Treasury Regulation 1.42-10?
Answer: B. The property owner's estimate based on comparable market-rate units nearby
An owner's personal estimate is not an approved source; IRS-approved methods include PHA schedules, the HUD Utility Schedule Model, energy auditor studies, utility company estimates, RD schedules, and state agency estimates.
What is the most important foundational concept in Property Management?
Answer: A. Understanding core principles and their practical application in Property Management
Core principles provide the foundation for all decision-making and practice in Property Management.
Take the full Housing Credit Certified Professional practice test