NAHP Compliance Monitoring & Fair Housing Laws 4 — Questions and Answers
Question 1: The Violence Against Women Act (VAWA) as it applies to affordable housing primarily provides which protection?
- Free legal representation for victims
- Protection from eviction solely due to domestic violence (Correct answer)
- Mandatory relocation assistance
- Income deductions for medical costs
Correct answer: Protection from eviction solely due to domestic violence
VAWA prohibits housing providers receiving federal funding from evicting a tenant solely because they are a victim of domestic violence, dating violence, sexual assault, or stalking.
Question 2: A monitor discovers that a property owner has been claiming tax credits for units that do not meet the minimum habitability standards under HQS. The best course of action is to:
- Issue a warning letter and allow 60 days to cure
- Notify the IRS immediately and revoke all credits
- Document the finding and issue a noncompliance notice to the state agency (Correct answer)
- Require the owner to hire a HUD-approved inspector
Correct answer: Document the finding and issue a noncompliance notice to the state agency
The compliance monitor should document findings and issue a noncompliance notice to the state HFA, which will report to the IRS via Form 8823.
Question 3: Which of the following best describes 'steering' in the context of fair housing?
- Refusing to show housing to protected class members
- Guiding prospective tenants toward or away from certain neighborhoods based on protected characteristics (Correct answer)
- Setting different rental rates for protected class members
- Requiring excessive documentation from minority applicants
Correct answer: Guiding prospective tenants toward or away from certain neighborhoods based on protected characteristics
Steering involves directing prospective tenants to or away from certain units or neighborhoods based on their membership in a protected class.
Question 4: For a LIHTC property to qualify as a 40/60 set-aside election, what percentage of units must be occupied by households at or below 60% of Area Median Income (AMI)?
- 20%
- 40% (Correct answer)
- 60%
- 100%
Correct answer: 40%
The 40/60 set-aside requires that at least 40% of units be occupied by households earning no more than 60% of AMI.
Question 5: An accessible parking space requested by a tenant with a disability as a reasonable modification at a privately owned property is typically paid for by:
- The property owner
- HUD
- The tenant requesting the modification (Correct answer)
- The state housing agency
Correct answer: The tenant requesting the modification
Under the Fair Housing Act, at privately owned properties, the cost of reasonable modifications is generally borne by the tenant requesting the modification.
Question 6: A compliance audit reveals that a LIHTC property's gross rent exceeds the applicable rent limit. What is the likely consequence?
- The IRS will audit the property owner's personal taxes
- The affected units are out of compliance and may result in credit recapture (Correct answer)
- HUD will terminate the property's subsidy
- The state will impose a fine equal to one month's rent
Correct answer: The affected units are out of compliance and may result in credit recapture
Charging rents above the applicable LIHTC rent limits renders those units noncompliant and can trigger credit recapture by the IRS.
Question 7: A property manager asks an applicant 'Do you have any mental health conditions?' during the application process. This question is:
- Permissible to assess suitability for housing
- A potential Fair Housing Act violation based on disability discrimination (Correct answer)
- Required under state landlord-tenant law
- Acceptable only for federally subsidized properties
Correct answer: A potential Fair Housing Act violation based on disability discrimination
Inquiring about an applicant's mental health condition during the rental process is a violation of the Fair Housing Act's prohibition on disability-based discrimination.
NAHP Compliance Monitoring & Fair Housing Laws 4
The Violence Against Women Act (VAWA) as it applies to affordable housing primarily provides which protection?