NAHP Compliance Monitoring & Fair Housing Laws 5 — Questions and Answers
Question 1: Under the LIHTC program, IRS Form 8823 is used by state agencies to report what?
- Annual tax credit allocations to property owners
- Noncompliance or return to compliance for LIHTC properties (Correct answer)
- Tenant income certifications submitted annually
- Owner requests for credit extensions
Correct answer: Noncompliance or return to compliance for LIHTC properties
State Housing Finance Agencies file IRS Form 8823 to report instances of noncompliance or to indicate that a property has returned to compliance.
Question 2: A property accepts Project-Based Section 8 subsidies. Under VAWA, if a tenant is a victim of domestic violence, management must provide her with:
- Immediate transfer to another subsidized unit
- Notice of her VAWA rights (HUD Form 5380) within 14 business days of adverse action (Correct answer)
- A 30-day grace period before eviction proceedings
- Priority placement on the Section 8 waiting list
Correct answer: Notice of her VAWA rights (HUD Form 5380) within 14 business days of adverse action
VAWA regulations require housing providers to inform tenants of their rights by providing HUD-approved notice forms within 14 business days of an adverse housing action.
Question 3: A NAHP professional is reviewing household files and notices that one household has recertified at 80% AMI, above the program's 60% AMI income limit. Under LIHTC rules, this unit:
- Must be immediately vacated
- Remains a Low-Income unit as long as rent restrictions are maintained and the next available unit is rented to an eligible household (Correct answer)
- Is automatically removed from the LIHTC program
- Requires a waiver from the state HFA
Correct answer: Remains a Low-Income unit as long as rent restrictions are maintained and the next available unit is rented to an eligible household
The over-income rule allows a unit to remain Low-Income if rent limits are maintained and the next available comparable unit is rented to a qualified household.
Question 4: Which of the following constitutes a reasonable modification under the Fair Housing Act at a federally assisted property?
- Adding a swimming pool for recreational use
- Installing grab bars in the bathroom for a tenant with a physical disability (Correct answer)
- Upgrading kitchen appliances for general aesthetics
- Painting common areas in a color preferred by a tenant
Correct answer: Installing grab bars in the bathroom for a tenant with a physical disability
Installing grab bars to accommodate a disability-related need is a classic example of a reasonable modification protected under the Fair Housing Act.
Question 5: An affordable housing compliance officer finds that a property has been allowing income-qualified tenants to move in without completing required third-party income verifications. This violates:
- State landlord-tenant statutes
- LIHTC income verification requirements under the Applicable Fraction rules (Correct answer)
- Federal rent stabilization guidelines
- HQS inspection standards
Correct answer: LIHTC income verification requirements under the Applicable Fraction rules
LIHTC regulations require third-party verification of income for all household members to properly certify eligibility and maintain the Applicable Fraction.
Question 6: A property manager says to a Black applicant: 'This building is really better suited for families of your background on the south side of town.' This is an example of:
- Blockbusting
- Redlining
- Steering (Correct answer)
- Source of income discrimination
Correct answer: Steering
Directing applicants to particular neighborhoods or buildings based on race is steering, a prohibited form of housing discrimination.
Question 7: The Uniform Physical Condition Standards (UPCS) are used in affordable housing inspections primarily to evaluate:
- A property's financial performance and debt coverage ratio
- The physical condition of a property and its units to ensure habitability (Correct answer)
- A tenant's compliance with lease terms
- Energy efficiency and green building standards
Correct answer: The physical condition of a property and its units to ensure habitability
UPCS is HUD's inspection protocol that assesses the physical condition of properties to ensure they are safe, sanitary, and in good repair.
NAHP Compliance Monitoring & Fair Housing Laws 5
Under the LIHTC program, IRS Form 8823 is used by state agencies to report what?