TCS Inspection and Physical Compliance 1 — Questions and Answers
Question 1: What is the primary federal standard used to assess the physical condition of LIHTC units during inspections?
- HUD Housing Quality Standards (HQS)
- Uniform Physical Condition Standards (UPCS) (Correct answer)
- IRS Minimum Property Standards
- OSHA Residential Safety Guidelines
Correct answer: Uniform Physical Condition Standards (UPCS)
The Uniform Physical Condition Standards (UPCS) are the primary federal inspection standard used to assess the physical condition of LIHTC and other federally assisted housing.
Question 2: During an LIHTC compliance inspection, inspectors typically examine which areas?
- Only occupied LIHTC units
- The site, building exteriors, building systems, common areas, and unit interiors (Correct answer)
- Only common areas and building systems
- Only vacant units to avoid disturbing tenants
Correct answer: The site, building exteriors, building systems, common areas, and unit interiors
UPCS inspections cover all major areas including the site, building exteriors, systems, common areas, and a sample of unit interiors.
Question 3: How frequently must state housing finance agencies inspect LIHTC properties during the compliance period?
- Every year
- At least once every three years (Correct answer)
- Every five years
- Only at placed-in-service and end of compliance period
Correct answer: At least once every three years
State HFAs must conduct physical inspections and tenant file reviews at least once every three years during the compliance period.
Question 4: A LIHTC unit fails a physical inspection due to a non-emergency deficiency. The owner typically has how long to correct it?
- 24 hours
- 30 days (Correct answer)
- 90 days
- 6 months
Correct answer: 30 days
Owners are generally given 30 days to correct non-emergency physical deficiencies identified during LIHTC compliance inspections.
Question 5: An emergency health and safety deficiency found during inspection, such as a missing smoke detector, must be corrected:
- Within 30 days
- Within 24 hours (Correct answer)
- At the next scheduled maintenance cycle
- Before the next annual inspection
Correct answer: Within 24 hours
Emergency health and safety deficiencies that pose immediate danger must be corrected within 24 hours of identification.
Question 6: What must owners do if they cannot correct a physical deficiency within the required timeframe?
- Request a waiver from the IRS
- Notify the state agency and provide a corrective action plan with a revised timeline (Correct answer)
- Vacate the affected unit until repairs are complete
- Terminate the tenant's lease
Correct answer: Notify the state agency and provide a corrective action plan with a revised timeline
Owners must notify the state housing finance agency and submit a corrective action plan explaining the delay and providing a revised completion schedule.
What is the primary federal standard used to assess the physical condition of LIHTC units during inspections?