TCS Rent and Utility Allowances 3

Question 1

Which method may NOT be used as an alternative utility allowance source for LIHTC properties?

Accepted Answer

Owner-estimated utility costs without documentation

Answer

Owners cannot use undocumented owner estimates; acceptable methods include HUD, local PHA schedules, energy consumption models, or utility company estimates.

Question 2

A property with an Energy Star certification may use which utility allowance method to reflect lower utility costs?

Accepted Answer

Energy consumption model reflecting the building's actual efficiency

Answer

An energy consumption model can be used for Energy Star or green-certified buildings to reflect the property's actual lower utility consumption.

Question 3

What must an owner do if they discover their property has been charging gross rents above the applicable maximum?

Accepted Answer

Refund the overcharged amounts to affected tenants and reduce rents

Answer

Owners must reduce rents to compliant levels and refund any overcharged amounts to tenants, and the state agency must be notified of the noncompliance.

Question 4

Utility allowance increases are typically effective:

Accepted Answer

90 days after the HFA publishes updated schedules

Answer

Updated utility allowances generally take effect 90 days after publication by the state HFA, giving owners time to adjust rents.

Question 5

Which type of charge is NOT included in gross rent for LIHTC compliance?

Accepted Answer

Optional storage unit fees

Answer

Optional fees for services tenants choose, such as optional storage, are not included in gross rent because tenants are not required to pay them.

TCS - Tax Credit Specialist Practice Test

TCS - Tax Credit Specialist Practice Test

TCS Rent and Utility Allowances 3