LIHTC Ethical Standards & Professional Conduct 5

Question 1

Under TCAC regulations, what is a LIHTC owner's ethical obligation when a tenant's income increases above the applicable income limit at recertification?

Accepted Answer

Allow the tenant to remain and apply the next-available-unit rule as required by the program

Answer

The next-available-unit rule allows over-income tenants to remain housed while requiring the next comparable unit be leased to a qualified household.

Question 2

A LIHTC compliance consultant simultaneously advises both the developer and the investor on the same transaction. This arrangement represents:

Accepted Answer

A conflict of interest requiring informed written consent from both parties or disengagement

Answer

Representing parties with potentially adverse interests in the same transaction creates a conflict of interest requiring full disclosure and informed written consent.

Question 3

A LIHTC property manager adds a policy requiring all prospective tenants to have a U.S. citizen co-signer. This policy:

Accepted Answer

Likely constitutes national origin or citizenship discrimination in violation of fair housing law

Answer

A blanket co-signer requirement tied to citizenship status likely constitutes national origin discrimination, which is prohibited under the Fair Housing Act.

Question 4

When a LIHTC syndicator discovers the general partner has diverted partnership funds for personal use, the syndicator's fiduciary duty requires:

Accepted Answer

Notifying limited partner investors, removing the GP if authorized, and reporting to relevant authorities

Answer

A GP diverting partnership funds triggers the syndicator's fiduciary duty to protect investors, which requires disclosure, GP removal, and regulatory reporting.

Question 5

Under California ethical standards for LIHTC professionals, maintaining a 'self-monitoring' compliance system requires which of the following?

Accepted Answer

Conducting ongoing internal audits, training staff, and correcting noncompliance before state inspections

Answer

Self-monitoring requires proactive internal audits, staff training, and timely self-correction rather than waiting for regulatory inspections to uncover problems.

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

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

LIHTC Ethical Standards & Professional Conduct 5