TAX CREDIT SPECIALIST

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TAX CREDIT SPECIALIST

QUESTIONS AND CORRECT

ANSWERS THE LATEST UPDATE

AND RECOMMENDED VERS ION

Question 1: Who is responsible for most of the regulatory

administration of the Low-Income Housing Tax Credit Programs?

CORRECT ANSWER : Internal Revenue Service (IRS)

Question 2: The initial Compliance Period for LIHTC

properties combined with the Extended Use Period must

be for a minimum period of affordability at:

CORRECT ANSWER: 30 years

Question 3: The LIHTC regulations required that HUD

guidance for properly identifying and calculating income

and assets be followed according to:

CORRECT ANSWER : HUD Handbook 4350.3 REV-1

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Question 4: Use of HUD's Enterprise Income Verification

(EIV) system is:

CORRECT ANSWER : Required for LIHTC income

verifications

Question 5: The Following legislation includes provisions

for LIHTC:

CORRECT ANSWER : HERA, ARRA, VAWA

Question 6: The first three stages in the life of a LIHTC

property generally occurs within:

CORRECT ANSWER : Three years

Question 7: A reservation Letter received at the end of the

Application Stage for LIHTC means that:

CORRECT ANSWER : A portion of that year's tax

credits will be held in reserve for a project

Question 8: Carryover Allocations are issued by SHFAs

for LIHTC projects when:

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CORRECT ANSWER : Their 10% tests have been met

Question 9: Acquisition/Rehab projects generally place in

service at acquisition and are given:

CORRECT ANSWER : 240 days surrounding the

acquisition date to qualify existing tenants and claim credits from acquisition

Question 10: In the project example from appendix C

(course manual pg. 525), the equity from the credit sale

means that:

CORRECT ANSWE R: The tax credit project's mortgage

will be less than that of the conventional property, providing less debt and greater affordability

Question 11: When conducting physical inspections for

LIHTC, most state agencies use:

CORRECT ANSWER : HUD's Uniform Physical

Condition Standards (UPCS)

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Question 12: The two most important line items for

management purposes under Part II of IRS Form 8609

are:

CORRECT ANSWER : 8B and 10C

Question 13: IRS Form 8823 is used to:

CORRECT ANSWER : Report non-compliance to the

IRS by the State Agency

Question 14: A tax credit disallowance prevents credits

from being claimed by the owner:

CORRECT ANSWER : for the current year

Question 15: LIHTC resyndication means that:

CORRECT ANSWER : Owners receive a second

allocation of tax credits for an existing LIHTC property

Question 16: For LIHTC, an individual's income is

determined in a manner consistent with: