TCS Rent and Utility Allowances 2

Question 1

The gross rent floor for a LIHTC project is established at:

Accepted Answer

The date the project receives its allocation

Answer

The gross rent floor is set on the date the project receives its LIHTC allocation, protecting owners from rent reductions caused by AMI decreases.

Question 2

The gross rent floor provision protects owners by ensuring:

Accepted Answer

Rents can never decrease even if AMI drops

Answer

The gross rent floor ensures that if the published AMI decreases, rents do not fall below the level established at the time of the project's allocation.

Question 3

Which bedroom size is used to determine the income limit for a studio (zero-bedroom) unit?

Accepted Answer

One-person household income limit

Answer

For zero-bedroom units, the income limit is based on a one-person household, while rent limits are based on assumed 1.5 persons.

Question 4

If a property owner provides an owner-paid utility allowance to a tenant, the amount provided:

Accepted Answer

Reduces the maximum allowable contract rent

Answer

When an owner provides a utility allowance directly to tenants, it reduces the maximum contract rent that can be charged to keep gross rent within limits.

Question 5

How are bedroom sizes assigned for rent limit purposes when a LIHTC unit is intended for persons with disabilities?

Accepted Answer

The actual bedroom count of the unit determines the limit

Answer

Rent limits are always based on the actual physical bedroom count of the unit, regardless of the intended occupant or accessibility features.

TCS - Tax Credit Specialist Practice Test

TCS - Tax Credit Specialist Practice Test

TCS Rent and Utility Allowances 2