TCS Rent and Utility Allowances

Question 1

Under LIHTC rules, what is the maximum gross rent allowed for a 60% AMI two-bedroom unit?

Accepted Answer

30% of 60% AMI adjusted for unit size

Answer

The maximum gross rent is 30% of the income limit applicable to the unit, based on the AMI set-aside percentage and assumed household size by bedroom count.

Question 2

Gross rent for LIHTC purposes includes:

Accepted Answer

Contract rent plus the utility allowance

Answer

Gross rent equals the contract rent charged plus any utility allowance applicable to tenant-paid utilities.

Question 3

Which agency is responsible for publishing the utility allowances used at most LIHTC properties?

Accepted Answer

The state housing finance agency (HFA)

Answer

State housing finance agencies typically publish and update utility allowance schedules that LIHTC properties are required to use.

Question 4

If a tenant pays all utilities, the utility allowance must be:

Accepted Answer

Added to the rent when checking gross rent limits

Answer

When tenants pay their own utilities, the utility allowance is added to the contract rent to determine the gross rent for compliance testing.

Question 5

How often must utility allowances be updated at LIHTC properties?

Accepted Answer

Annually

Answer

Utility allowances must be reviewed and updated at least annually to reflect current utility costs.

TCS - Tax Credit Specialist Practice Test

TCS - Tax Credit Specialist Practice Test

TCS Rent and Utility Allowances