LIHTC Eligibility Criteria & Application Process 3

Question 1

California's LIHTC program offers a state credit in addition to the federal credit. What is the approximate value of the California state credit relative to the federal credit?

Accepted Answer

30% of the federal credit amount

Answer

California's state LIHTC is generally 30% of the federal credit, providing additional financing for affordable housing development.

Question 2

Which income averaging option allows some LIHTC units to serve households earning up to 80% AMI as long as the project average does not exceed 60% AMI?

Accepted Answer

The income averaging election

Answer

The income averaging election, added by the Consolidated Appropriations Act of 2018, allows units at various income levels as long as the project-wide average does not exceed 60% AMI.

Question 3

During the LIHTC compliance period in California, how often must owners certify tenant income?

Accepted Answer

Annually

Answer

Owners must certify tenant income annually throughout the compliance period to ensure ongoing eligibility.

Question 4

A LIHTC project in a Difficult Development Area (DDA) is eligible for what benefit in California?

Accepted Answer

A basis boost of up to 130% of eligible basis

Answer

Projects in DDAs or Qualified Census Tracts can use up to 130% of eligible basis to calculate the credit, increasing the available credit amount.

Question 5

What document must a California LIHTC project owner record with the county to memorialize affordability requirements?

Accepted Answer

A Land Use Restriction Agreement (LURA)

Answer

A Land Use Restriction Agreement (LURA), also called an Extended Use Agreement, is recorded against the property to enforce long-term affordability requirements.

(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 3