LIHTC Property Management & Compliance Monitoring

Question 1

What is the initial compliance period required under IRC Section 42 for LIHTC properties?

Accepted Answer

15 years

Answer

5 years

Answer

10 years

Answer

20 years

Question 2

Which California state agency is primarily responsible for monitoring ongoing LIHTC compliance?

Accepted Answer

California Tax Credit Allocation Committee (TCAC)

Answer

California Housing Finance Agency (CalHFA)

Answer

California Department of Housing and Community Development (HCD)

Answer

California Department of Finance

Question 3

Which IRS form must a state allocating agency file to report a LIHTC noncompliance event?

Accepted Answer

Form 8823

Answer

Form 8609

Answer

Form 8586

Answer

Form 1065

Question 4

Under IRC Section 42(g), what is the '20-50 test' minimum set-aside requirement for LIHTC projects?

Accepted Answer

20% of units at 50% AMI

Answer

20% of units at 30% AMI

Answer

40% of units at 50% AMI

Answer

50% of units at 60% AMI

Question 5

How is the maximum allowable rent for a LIHTC unit restricted at 60% AMI calculated?

Accepted Answer

30% of 60% of the area median income adjusted for unit size

Answer

30% of the tenant's actual income

Answer

Fair market rent as determined by HUD

Answer

50% of the area median gross rent

Question 6

When a LIHTC tenant's income increases above the applicable income limit, which rule generally applies to maintain the building's qualified status?

Accepted Answer

The next available comparable unit must be rented to a qualified household

Answer

The tenant must immediately vacate the unit

Answer

The unit loses its qualified status immediately

Answer

The rent must be raised to market rate within 30 days

Question 7

How often must LIHTC property owners recertify tenant income under California TCAC regulations?

Accepted Answer

Annually

Answer

Every 6 months

Answer

Every 3 years

Answer

Only at initial move-in