NAHP Practice Test Video Answers

1. C
According to HUD Handbook 4350.3, paragraph 5-17.B.1, verifications are valid for 120 days from the date of receipt. This allows sufficient time for processing while ensuring information remains current.

2. A
The 20/50 minimum set-aside under LIHTC requires that at least 20% of units be rented to households with incomes at or below 50% of the Area Median Income (AMI). This is one of two federal minimum set-aside options.

3. C
The Fair Housing Act of 1968 (as amended) prohibits discrimination based on seven protected classes: race, color, religion, sex, national origin, familial status, and disability (handicap). The ADA and Section 504 address disability specifically but not all seven classes.

4. C
Per HUD Handbook 4350.3, Social Security Numbers must be disclosed and verified for household members when they reach age 6, or for those under age 6 if they have been assigned an SSN.

5. B
Section 504 requires that a minimum of 5% of dwelling units in newly constructed or substantially rehabilitated federally assisted housing be accessible for persons with mobility impairments.

6. B
LIHTC properties must maintain income and rent restrictions continuously for a 15-year initial compliance period. Tax credits are recaptured if compliance is not maintained during this period.

7. B
The Enterprise Income Verification (EIV) system is HUD’s web-based system used to verify tenant employment and income information, identify discrepancies, and reduce subsidy errors in HUD-assisted housing.

8. C
Under HUD rent formulas for Section 8 project-based assistance, tenants typically pay 30% of their adjusted gross income toward rent, which is the standard affordability benchmark.

9. B
The Certified Professional of Occupancy (CPO) certification, offered by NAHMA, specifically covers HUD Handbook 4350.3 including eligibility, occupancy standards, tenant screening, assets and income, lease, and rent computations.

10. C
Sexual orientation is not currently one of the seven protected classes under the federal Fair Housing Act. The protected classes are: race, color, religion, sex, national origin, familial status, and disability.

11. B
Money held in a revocable trust is considered an asset because the individual has control over the principal and can withdraw funds. Necessary personal property, transportation vehicles, and household effects are excluded from asset calculations.

12. A
Under the 40/60 minimum set-aside election, at least 40% of units must be rented to households with incomes at or below 60% of the Area Median Income (AMI).

13. B
HUD requires annual recertifications to be conducted every 12 months to verify continued eligibility and recalculate tenant rent based on current income and household composition.

14. D
State housing agencies typically require a total affordability period of 30 years for LIHTC properties (15-year initial compliance period plus 15-year extended use period).

15. B
Under the Fair Housing Act, housing providers must make reasonable accommodations when such accommodations may be necessary to afford a person with a disability an equal opportunity to use and enjoy a dwelling.

16. C
Under income averaging, individual units may serve households with incomes up to 80% of AMI, as long as the average income across all tax credit units remains at or below 60% of AMI.

17. C
The Residents’ Rights and Responsibilities Brochure, available in English and Spanish, provides tenants with essential information about their rights and obligations in HUD-assisted housing.

18. B
Under income averaging for LIHTC, while individual units may serve higher-income households (up to 80% AMI), the average income limit for all tax credit units in the project must be at or below 60% of AMI.

19. B
Under the Fair Housing Act for non-federally assisted housing, reasonable modifications must be permitted, but the tenant requesting the modification is typically responsible for paying for structural changes. This differs from Section 504 federally assisted housing.

20. D
Utility allowances are set by the property owner or Contract Administrator based on HUD guidelines, not determined through the Tenant Selection Plan. The TSP covers application procedures, waiting list management, eligibility, and selection criteria.

21. C
HUD publishes an annual passbook savings rate that is used to calculate imputed income from assets. This rate changes periodically and must be obtained from current HUD guidance.

22. B
A change in family composition (addition or removal of household members) triggers an interim recertification. Annual anniversary dates trigger regular annual recertifications, not interim ones.

23. A
Section 504 requires that a minimum of 2% of dwelling units be accessible for persons with hearing or vision impairments, in addition to the 5% requirement for mobility accessibility.

24. B
LIHTC maximum rents are set at 30% of the applicable income limit (e.g., 60% of AMI), not 30% of the tenant’s actual income. This ensures rents remain affordable at the designated income targeting level.

25. B
Form 9887/9887-A must be signed at each annual recertification to authorize the release of income and other information necessary for determining continued eligibility and rent calculations.

26. B
The 9% credit (designated in the law as a 70% present value credit) applies to new construction or substantial rehabilitation projects that are not funded with tax-exempt bonds. The 4% credit applies to bond-financed projects.

27. B
For sporadic or irregular income, HUD guidelines require calculating an average of amounts received over a representative period to determine anticipated annual income.

28. B
The Qualified Allocation Plan (QAP) is developed by state housing finance agencies to set forth selection criteria, federal preferences, and state priorities for awarding LIHTC allocations through a competitive process.

29. C
Housing providers may request verification of disability and disability-related need for accommodation only when either the disability or the disability-related need is not readily apparent or obvious.

30. A
When total net family assets exceed $5,000, the income from assets is calculated using the greater of actual income from assets or imputed income using the passbook savings rate.

31. C
For LIHTC compliance, gross rent includes tenant-paid rent plus the applicable utility allowance plus any mandatory fees. This total must not exceed the maximum allowable rent limit.

32. C
Section 8 income targeting requires that 40% of new admissions to Section 8 properties be extremely low-income (at or below 30% of AMI).

33. B
According to HUD Handbook 4350.3, a tenant’s file must be made available for review upon request by the tenant or by a third party who provides signed authorization from the tenant.

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