LIHTC Cheat Sheet 2026

The 30 highest-yield LIHTC facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A LIHTC project in a Difficult Development Area (DDA) is eligible for what benefit in California? → A basis boost of up to 130% of eligible basis
2. Effective communication between California Low-Income Housing Tax Credit Exam professionals and stakeholders requires which essential element? → Adapting communication style to the audience while maintaining accuracy
3. Which regulatory requirement is UNIVERSAL across all California Low-Income Housing Tax Credit Exam practice settings? → Maintaining current certification and continuing education
4. A LIHTC project in California receives a reservation of credits. How long does the developer typically have to place the project in service? → 36 months
5. What happens after an application is approved? → Allocation of tax credits
6. What type of projects qualify for LIHTC? → Affordable rental housing projects
7. What is the MOST important reason for California Low-Income Housing Tax Credit Exam professionals to maintain continuing education? → To stay current with evolving standards, practices, and regulations
8. When a LIHTC developer's qualified basis is found to have been overstated after credit allocation, what is the ethical obligation? → Voluntarily disclose the error to TCAC and repay any excess credits received
9. Under California's LIHTC program, what is the minimum percentage of units that must be set aside for low-income tenants under the 20-50 test? → 20%
10. In LIHTC practice, what happens when regulations are updated? → Professionals must update knowledge and practices to meet new requirements
11. What is the BEST way for a California Low-Income Housing Tax Credit Exam professional to stay current with regulatory changes? → Monitor regulatory bodies, attend CE, and participate in professional associations
12. Which of the following generally does NOT qualify as a 'low-income unit' for LIHTC purposes? → A unit used as a live-in resident manager's unit
13. What happens if financial mismanagement is detected in LIHTC projects? → Penalties and credit recapture
14. For California LIHTC purposes, which of the following household members' income is generally NOT counted in determining tenant eligibility? → A live-in aide employed by the tenant
15. A California LIHTC project must submit annual compliance reports to CTCAC that include which of the following? → Tenant income certifications and unit vacancy data
16. A LIHTC property manager discovers a maintenance contractor is a close relative of the owner. What is the ethical obligation? → Disclose the relationship to oversight authorities and document any transactions
17. In California, which funding source is most commonly layered with LIHTC to finance affordable housing projects? → Tax-exempt mortgage revenue bonds (4% credit projects)
18. Which of the following would INCREASE a LIHTC project's eligible basis, thereby generating more tax credits? → Including historic tax credit-qualifying rehabilitation costs
19. Which personal protective equipment (PPE) principle applies to ALL LIHTC certified professionals regardless of their specific role? → PPE must be properly fitted, maintained, and replaced as needed
20. What is the 'eligible basis' in the LIHTC calculation? → The depreciable cost of the building eligible for the tax credit calculation
21. Which of the following best describes the '4% federal LIHTC' credit? → A noncompetitive credit typically paired with tax-exempt bond financing
22. When a LIHTC professional makes an error in documentation, the CORRECT procedure is to: → Draw a single line through the error, initial, date, and write the correction
23. What is the length of the extended use agreement that California LIHTC projects must comply with beyond the initial 15-year compliance period? → 15 additional years
24. A LIHTC project has 50 units restricted to 60% AMI and 10 market-rate units. Which minimum set-aside test does this project satisfy? → 40-60 test only
25. Under IRS rules, what is the minimum number of years a LIHTC project must remain affordable after the initial 15-year compliance period? → 15 additional years (30 years total)
26. The federal 9% LIHTC credit is generally awarded through which competitive process? → Qualified Allocation Plan (QAP) scoring
27. What ethical obligation does a LIHTC developer have when they become aware that a project's market study contains inflated demand projections submitted to TCAC? → Notify TCAC of the inaccurate data and submit a corrected market study
28. What is the PRIMARY purpose of maintaining a clear chain of communication in LIHTC settings? → To ensure accountability, prevent miscommunication, and facilitate timely information flow
29. What is the PRIMARY purpose of obtaining LIHTC certification in California Low-Income Housing Tax Credit Exam? → To demonstrate verified competency and adherence to professional standards
30. Which documentation practice BEST demonstrates regulatory compliance for LIHTC certified professionals? → Maintaining organized, dated, and signed records of all activities