HCCP Project Management 3

Question 1

A LIHTC project is behind schedule and at risk of missing the placed-in-service deadline. What is the developer's first recourse?

Accepted Answer

Place at least one building in service to preserve the allocation for the entire project

Answer

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.

Question 2

Which party is primarily responsible for ensuring that construction meets the LIHTC minimum set-aside requirements before units are occupied?

Accepted Answer

The owner/developer

Answer

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.

Question 3

In LIHTC project management, what is a 'draw inspection' primarily intended to verify?

Accepted Answer

That work billed in a draw request has actually been completed to the standard specified

Answer

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.

Question 4

A LIHTC project uses an owner-controlled insurance program (OCIP). What is the primary project management advantage?

Accepted Answer

It consolidates coverage for all contractors under one policy, reducing gaps and disputes

Answer

An OCIP covers all enrolled contractors under a single program, reducing duplicate coverage, coverage gaps, and insurance-related disputes on large LIHTC projects.

Question 5

During LIHTC construction, which budget line item is most likely to trigger a request for a basis increase from the state agency?

Accepted Answer

Hard cost overruns due to unforeseen site conditions or material price escalation

Answer

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.

(HCCP) Housing Credit Certified Professional Practice Test

(HCCP) Housing Credit Certified Professional Practice Test

HCCP Project Management 3