LIHTC Eligibility Criteria & Application Process 2

Question 1

Under California's LIHTC program, what is the minimum percentage of units that must be rent-restricted and occupied by income-qualified tenants for the 40-60 test?

Accepted Answer

40% at 60% AMI

Answer

The 40-60 test requires that at least 40% of units be occupied by tenants earning no more than 60% of AMI.

Question 2

Which California state agency administers the LIHTC program and issues tax credit allocations?

Accepted Answer

California Tax Credit Allocation Committee

Answer

The California Tax Credit Allocation Committee (CTCAC) is the state agency responsible for allocating federal and state low-income housing tax credits.

Question 3

A LIHTC project in California receives a reservation of credits. How long does the developer typically have to place the project in service?

Accepted Answer

36 months

Answer

CTCAC generally requires projects to be placed in service within 36 months of the credit reservation date.

Question 4

What happens to a tenant's eligibility if their income rises above 140% of the applicable income limit during their tenancy in a LIHTC unit?

Accepted Answer

They may remain until the next available unit of comparable size is rented to an income-qualified tenant

Answer

Under the next available unit rule, over-income tenants may stay until the next comparable unit is rented to a qualified tenant.

Question 5

In California LIHTC applications, what does the term 'basis' refer to in the context of the credit calculation?

Accepted Answer

The eligible costs of the building on which the tax credit percentage is applied

Answer

Basis (eligible basis) refers to the qualified development costs of the building to which the applicable credit percentage is applied to determine the annual credit amount.

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

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

LIHTC Eligibility Criteria & Application Process 2