NAHP Affordable Housing Programs & Regulations 3

Question 1

A LIHTC project must maintain affordability restrictions for a minimum compliance period plus an extended use period. What is the total minimum years required by federal law?

Accepted Answer

30 years

Answer

Federal law requires a 15-year initial compliance period plus a 15-year extended use period, for a total minimum of 30 years of affordability.

Question 2

What is 'recapture' in the context of the LIHTC program?

Accepted Answer

The IRS clawback of previously claimed tax credits when a project falls out of compliance

Answer

Recapture occurs when the IRS requires an investor to repay previously taken LIHTC credits plus interest if the project violates compliance requirements.

Question 3

Under Section 8 Housing Choice Voucher program rules, what is the maximum percentage of income a voucher holder is required to pay toward rent when first leasing a unit?

Accepted Answer

30%

Answer

Voucher holders must pay at least 30% of their adjusted monthly income toward rent and utilities, and cannot initially pay more than 40% when first leasing a unit.

Question 4

Which regulation requires that federally assisted housing projects conduct an environmental review before any project commitment or property acquisition?

Accepted Answer

National Environmental Policy Act (NEPA)

Answer

NEPA (and HUD's implementing regulations at 24 CFR Part 58) require environmental review of proposed projects before federal funds are committed or property is acquired.

Question 5

What is the purpose of a Rental Assistance Demonstration (RAD) conversion?

Accepted Answer

To convert public housing and other HUD-assisted properties to a more stable project-based Section 8 funding platform

Answer

RAD converts public housing (and certain other assisted properties) from operating and capital fund subsidies to long-term project-based rental assistance contracts, enabling private financing for rehabilitation.

(NAHP) National Affordable Housing Professional Practice Test

(NAHP) National Affordable Housing Professional Practice Test

NAHP Affordable Housing Programs & Regulations 3