Project Management Flashcards

Under LIHTC rules, what is the deadline for meeting the 10% test after receiving a carryover allocation?

Answer: 12 months from allocation date

Projects receiving a carryover allocation must incur more than 10% of the reasonably expected basis within 12 months of the allocation date.

A developer discovers during construction that the site has unexpected soil contamination. Which project management step is the most appropriate immediate action?

Answer: Halt construction, notify the state agency, and engage an environmental consultant

Environmental contamination requires halting affected work, notifying the allocating agency, and engaging a qualified environmental consultant to assess remediation needs.

In a LIHTC project, what document formally establishes the completion date for purposes of the placed-in-service deadline?

Answer: The Certificate of Occupancy issued by the local jurisdiction

A Certificate of Occupancy from the local jurisdiction is the standard evidence used to establish that a building has been placed in service.

A general contractor submits a change order that increases total construction costs by 8%. How does this typically affect the LIHTC basis?

Answer: 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.

Which project management tool is most useful for tracking interdependent construction activities and identifying the critical path in a LIHTC development?

Answer: A Gantt chart with predecessor relationships

A Gantt chart with predecessor relationships enables critical path identification by showing which tasks must be completed before others can begin.

Retainage on a LIHTC construction contract is typically released after which event?

Answer: Substantial completion and resolution of all punch-list items

Retainage is held back during construction to ensure contractor performance and is released after substantial completion and resolution of outstanding punch-list deficiencies.

When a LIHTC project converts from construction loan to permanent financing, which project management milestone triggers this transition?

Answer: Stabilized occupancy, typically defined as 90% or 93% occupancy for a set period

Permanent loan conversion is typically triggered when the project achieves stabilized occupancy, commonly defined as 90–93% occupancy maintained for 90 consecutive days.