TCS Initial Occupancy and Move-In Procedures 2

Question 1

Which of the following is a required element of third-party income verification at move-in?

Accepted Answer

A signed verification form sent directly to and from the employer

Answer

Third-party verification requires written confirmation from a neutral source, such as a signed employer verification form, not verbal or applicant-provided documentation.

Question 2

A unit is designated as a manager unit at a LIHTC property. Is an income certification required for the manager?

Accepted Answer

No, manager units are exempt from income certification requirements

Answer

Manager units occupied by employees as a condition of employment are generally exempt from LIHTC income qualification and certification requirements.

Question 3

When calculating income for a new applicant, the owner must use:

Accepted Answer

Anticipated annual income for the coming 12 months

Answer

LIHTC income eligibility is based on anticipated gross annual income for the next 12 months, not historical income.

Question 4

A student household applies for a 100% LIHTC property. The household consists of two full-time graduate students with no children. Are they eligible?

Accepted Answer

No, full-time student households without qualifying exceptions are ineligible

Answer

All-full-time student households that do not meet a statutory exception are ineligible for LIHTC units under IRC Section 42(i)(3)(D).

Question 5

At move-in, the owner should retain income verification documents in the tenant file for at least:

Accepted Answer

6 years after the end of the extended use period

Answer

IRS regulations require that tenant income verification records be retained for at least 6 years after the end of the extended use agreement.

TCS - Tax Credit Specialist Practice Test

TCS - Tax Credit Specialist Practice Test

TCS Initial Occupancy and Move-In Procedures 2