Project Management Flashcards
7 cards from real HCCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Project Management flashcards as text
A LIHTC project is behind schedule and at risk of missing the placed-in-service deadline. What is the developer's first recourse?
Answer: Place at least one building in service to preserve the allocation for the entire project
Placing at least one building in service before the deadline can preserve the allocation; the developer should also contact the state agency, but the immediate project action is to place a building in service.
Which party is primarily responsible for ensuring that construction meets the LIHTC minimum set-aside requirements before units are occupied?
Answer: The owner/developer
The owner/developer bears primary responsibility for ensuring the project meets LIHTC requirements, including minimum set-asides, and must certify compliance to the allocating agency.
In LIHTC project management, what is a 'draw inspection' primarily intended to verify?
Answer: That work billed in a draw request has actually been completed to the standard specified
Draw inspections are conducted by a lender's or investor's inspector to confirm that the work invoiced in a construction draw request has been physically completed and meets contract specifications.
A LIHTC project uses an owner-controlled insurance program (OCIP). What is the primary project management advantage?
Answer: It consolidates coverage for all contractors under one policy, reducing gaps and disputes
An OCIP covers all enrolled contractors under a single program, reducing duplicate coverage, coverage gaps, and insurance-related disputes on large LIHTC projects.
During LIHTC construction, which budget line item is most likely to trigger a request for a basis increase from the state agency?
Answer: Hard cost overruns due to unforeseen site conditions or material price escalation
Hard cost overruns stemming from unforeseen site conditions or material escalation are the most common reason developers request a basis increase from the allocating agency.
What is the purpose of a construction completion guaranty in a LIHTC transaction?
Answer: It obligates the guarantor to complete construction if the developer defaults
A construction completion guaranty protects lenders and investors by obligating a creditworthy guarantor (typically the developer) to complete the project if the borrower defaults.
Under IRC Section 42, a building is considered 'placed in service' for tax credit purposes in the year when which event occurs?
Answer: The building is ready and available for occupancy
Under IRC Section 42, a building is placed in service in the taxable year it is ready and available for occupancy, regardless of whether all units are leased.