HCCP Regulatory Compliance 3

Question 1

A LIHTC unit sits vacant for 6 months without being rented to a qualified tenant. Which compliance issue does this most likely trigger?

Accepted Answer

Vacancy loss of credit for that unit during the period it is not occupied by a qualified tenant

Answer

A unit that is not occupied by a qualified tenant does not count in the applicable fraction for that period, reducing the credit that can be claimed.

Question 2

Under IRC §42, which of the following is NOT a permissible basis for excluding an applicant from a LIHTC unit?

Accepted Answer

The applicant's national origin

Answer

Fair Housing Act protections prohibit denying housing based on national origin; the other factors can be legitimate screening criteria under certain conditions.

Question 3

An owner elects the minimum set-aside in Year 1. In Year 3, can the owner change to a more restrictive set-aside election?

Accepted Answer

No, the minimum set-aside election is irrevocable once made

Answer

Under IRC §42(g)(1), the minimum set-aside election is irrevocable and binds the project for its entire compliance and extended use period.

Question 4

A household's income must be verified using third-party documentation. Which of the following is NOT an acceptable primary income verification method under LIHTC rules?

Accepted Answer

Tenant's self-certification alone with no supporting documents

Answer

Self-certification alone is not sufficient; LIHTC requires third-party or documentary evidence to verify income at move-in.

Question 5

Which of the following correctly describes a 'deep rent skewed' project under IRC §42(g)(4)?

Accepted Answer

At least 15% of the low-income units are rent-restricted to 40% AMI tenants and at least 40% of units are low-income

Answer

A deep rent skewed project under IRC §42(g)(4) requires that at least 15% of low-income units serve tenants at 40% AMI, allowing a 40/60 set-aside alternative.

(HCCP) Housing Credit Certified Professional Practice Test

(HCCP) Housing Credit Certified Professional Practice Test

HCCP Regulatory Compliance 3