UPC Housing Policy & Affordable Housing 1 — Questions and Answers
Question 1: Which federal law prohibits housing discrimination based on race, color, national origin, religion, sex, familial status, and disability?
- Community Reinvestment Act
- Fair Housing Act of 1968 (Correct answer)
- Housing and Community Development Act
- National Affordable Housing Act
Correct answer: Fair Housing Act of 1968
The Fair Housing Act of 1968 established federal protections against discrimination in the sale, rental, and financing of housing.
Question 2: According to the widely accepted planning standard, housing is considered affordable when it consumes no more than what percentage of gross household income?
- 20%
- 40%
- 30% (Correct answer)
- 50%
Correct answer: 30%
The 30% threshold is the standard cost-burden benchmark used by HUD and planners to define housing affordability.
Question 3: Which federal program uses Section 42 of the IRS tax code to provide incentives to private developers who construct or rehabilitate affordable rental housing?
- Community Development Block Grant (CDBG)
- Section 8 Housing Choice Voucher
- HOME Investment Partnerships Program
- Low-Income Housing Tax Credit (LIHTC) (Correct answer)
Correct answer: Low-Income Housing Tax Credit (LIHTC)
LIHTC allocates tax credits through state housing finance agencies to developers who reserve units for low-income households, making it the largest federal affordable housing production program.
Question 4: What is 'inclusionary zoning'?
- A policy requiring a percentage of new housing units to be priced as affordable (Correct answer)
- Zoning that excludes high-density residential uses from certain districts
- A federal mandate for all housing developments to include mixed-income units
- Regulations that permit all land uses within a single zone
Correct answer: A policy requiring a percentage of new housing units to be priced as affordable
Inclusionary zoning requires developers to set aside a share of new units as affordable—either on-site or through in-lieu fees—as a condition of project approval.
Question 5: Accessory Dwelling Units (ADUs) are primarily used in urban planning to:
- Replace aging public housing stock in urban cores
- Create additional housing supply on existing residential lots (Correct answer)
- House commercial tenants within residential zones
- Provide temporary emergency shelter during natural disasters
Correct answer: Create additional housing supply on existing residential lots
ADUs—such as garage apartments, in-law suites, and backyard cottages—add housing units to single-family lots, increasing density without major rezoning.
Question 6: The Section 8 Housing Choice Voucher program primarily works by:
- Constructing and managing government-owned public housing complexes
- Providing low-interest mortgage loans to first-time homebuyers
- Subsidizing rent for eligible low-income households to use in private market housing (Correct answer)
- Awarding block grants to cities for vacant property rehabilitation
Correct answer: Subsidizing rent for eligible low-income households to use in private market housing
Housing Choice Vouchers subsidize the gap between 30% of a household's income and the fair market rent, allowing recipients to rent privately owned housing of their choice.
Question 7: A 'housing needs assessment' is best described as:
- A code compliance inspection of rental properties in a jurisdiction
- An analysis of housing demand, supply gaps, and affordability challenges to guide policy (Correct answer)
- A financial audit of a local housing authority's expenditures
- A survey that evaluates the physical conditions of existing public housing units
Correct answer: An analysis of housing demand, supply gaps, and affordability challenges to guide policy
A housing needs assessment evaluates current stock, demographic trends, income levels, and affordability gaps to inform housing policy, plans, and resource allocation.
