LIHTC Ethical Standards & Professional Conduct 2

Question 1

A LIHTC property manager discovers a maintenance contractor is a close relative of the owner. What is the ethical obligation?

Accepted Answer

Disclose the relationship to oversight authorities and document any transactions

Answer

Conflicts of interest involving related parties must be disclosed to oversight entities and documented to ensure transparency.

Question 2

Under California LIHTC ethical standards, what does 'affirmative fair housing marketing' require a property to do?

Accepted Answer

Actively reach out to underrepresented groups least likely to apply for housing

Answer

Affirmative fair housing marketing requires targeting outreach to groups historically underserved or least likely to apply in that market area.

Question 3

A LIHTC compliance officer is offered tickets to a sporting event by a vendor seeking a contract. The ethical standard requires the officer to:

Accepted Answer

Decline and report the offer to a supervisor in accordance with the agency's gift policy

Answer

Gifts from vendors seeking contracts create the appearance of impropriety and should be declined and reported per agency gift policies.

Question 4

Which action by a LIHTC developer would constitute a violation of professional conduct standards during the application process?

Accepted Answer

Providing false or misleading financial projections in the tax credit application

Answer

Submitting false financial projections constitutes fraud and is a serious violation of professional conduct standards in LIHTC applications.

Question 5

When a tenant alleges disability discrimination at a LIHTC property, the property manager's first ethical step is to:

Accepted Answer

Document the complaint, respond in writing, and engage in an interactive process

Answer

Professional conduct requires documenting complaints, providing a written response, and engaging in an interactive reasonable accommodation process.

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