HCCP Regulatory Compliance 2

Question 1

Under IRS Revenue Procedure 2016-15, what is the maximum income a tenant can earn in the year following move-in before triggering income recertification concerns under the next-available-unit rule?

Accepted Answer

140% of the AMGI limit for the applicable unit size

Answer

The next-available-unit (140% rule) requires that once a tenant's income exceeds 140% of the qualifying limit, the next available comparable unit must be rented to a qualifying tenant.

Question 2

Which federal form is used by LIHTC property owners to report the certification of qualified basis and eligible basis to the IRS annually?

Accepted Answer

Form 8586

Answer

Form 8586 (Low-Income Housing Credit) is filed annually by the building owner to claim the housing credit and report qualified and eligible basis.

Question 3

A LIHTC property has a set-aside of 20/50. Which tenant household would qualify for a restricted unit?

Accepted Answer

A household at 48% AMI

Answer

The 20/50 set-aside requires at least 20% of units be occupied by households at or below 50% AMI, so 48% AMI qualifies.

Question 4

Which IRS publication provides guidance specifically on tenant income certification and recordkeeping requirements for LIHTC properties?

Accepted Answer

Revenue Procedure 94-65

Answer

Revenue Procedure 94-65 outlines the income certification and recordkeeping standards that LIHTC owners and managers must follow.

Question 5

What happens to a building's eligible basis if it receives a federal grant that is used to finance construction costs?

Accepted Answer

The eligible basis must be reduced by the amount of the federal grant

Answer

IRC §42(d)(5) requires that eligible basis be reduced by any federally funded grant proceeds used for construction or acquisition costs.

(HCCP) Housing Credit Certified Professional Practice Test

(HCCP) Housing Credit Certified Professional Practice Test

HCCP Regulatory Compliance 2