LIHTC Overview of California Low-Income Housing Tax Credit Program 2

Question 1

Which California state agency administers the state Low-Income Housing Tax Credit (LIHTC) program?

Accepted Answer

California Tax Credit Allocation Committee

Answer

The California Tax Credit Allocation Committee (CTCAC) administers both the federal and state LIHTC programs in California.

Question 2

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?

Accepted Answer

20%

Answer

The 20-50 test requires at least 20% of units to be occupied by households earning 50% or less of area median income.

Question 3

The federal 9% LIHTC credit is generally awarded through which competitive process?

Accepted Answer

Qualified Allocation Plan (QAP) scoring

Answer

The 9% credit is competitively allocated through a scoring system established by each state's Qualified Allocation Plan.

Question 4

What is the length of the extended use agreement that California LIHTC projects must comply with beyond the initial 15-year compliance period?

Accepted Answer

15 additional years

Answer

California LIHTC projects are subject to a 55-year total affordability period: the initial 15-year compliance period plus a 40-year extended use period (15+40=55).

Question 5

Which of the following project types generally receives the highest scoring preference under California's CTCAC Qualified Allocation Plan?

Accepted Answer

Projects serving the lowest income households in high-opportunity areas

Answer

CTCAC's QAP prioritizes projects that serve the deepest income targeting in high-opportunity areas to advance fair housing goals.

(LIHTC) California Low-Income Housing Tax Credit Exam Practice Test

(LIHTC) California Low-Income Housing Tax Credit Exam Practice Test

LIHTC Overview of California Low-Income Housing Tax Credit Program 2