LIHTC Property Management & Compliance Monitoring 2

Question 1

Under the LIHTC 'available unit rule,' if a previously 100%-qualified building has a unit become available, what must the owner do before renting to a market-rate tenant?

Accepted Answer

Rent the next available unit to a qualified low-income household first

Answer

The available unit rule requires owners to rent the next comparable available unit to a qualified household before renting any unit to an over-income or market-rate tenant.

Question 2

Which of the following generally does NOT qualify as a 'low-income unit' for LIHTC purposes?

Accepted Answer

A unit used as a live-in resident manager's unit

Answer

Resident manager units are typically excluded from the qualified unit count because they are not available to low-income applicants from the general public.

Question 3

Under the LIHTC full-time student rule, which household is eligible to occupy a tax-credit unit?

Accepted Answer

A single parent with a child, both enrolled full-time in school

Answer

Single parents with children are one of the five exceptions to the full-time student prohibition under IRC Section 42(i)(3)(D), making them eligible for LIHTC units.

Question 4

What is the primary purpose of a LIHTC Extended Use Agreement (EUA)?

Accepted Answer

To restrict the property to affordable housing use beyond the initial 15-year compliance period

Answer

The EUA, recorded against the property, legally binds the owner to maintain affordability restrictions beyond the initial compliance period, typically for 30 or more years.

Question 5

During a TCAC compliance review, which documentation is the primary tool for verifying tenant income eligibility at move-in?

Accepted Answer

The Tenant Income Certification (TIC) supported by third-party verifications

Answer

The Tenant Income Certification, together with third-party income verifications such as employer letters and pay stubs, is the cornerstone compliance document confirming household eligibility.

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

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

LIHTC Property Management & Compliance Monitoring 2