Tax Credit Specialist Questions and CORRECT ANSWER s the Latest Update and Recommended Version
Question : Who is responsible for most of the regulatory
administration of the Low-Income Housing Tax Credit Programs?
CORRECT ANSWER : Internal Revenue Service (IRS)
Question : 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 : 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
Question : Use of HUD's Enterprise Income Verification
(EIV) system is:
CORRECT ANSWER : Required for LIHTC income
verifications
Question : The Following legislation includes provisions for
LIHTC:
HERA ARRA VAWA
CORRECT ANSWER : HERA
ARRA VAWA
Question : The first three stages in the life of a LIHTC
property generally occurs within:
CORRECT ANSWER : Three years
Question : 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 : Carryover Allocations are issued by SHFAs for
LIHTC projects when:
CORRECT ANSWER : Their 10% tests have been met
Question : Acquisition/Rehab projects generally place in
service at acquisition and are given:
-120 days before acquisition to qualify existing tenants and claim credits from acquisition.-120 days after acquisition to qualify existing tenants and claim credits from acquisition.-240 days surrounding the acquisition date to qualify existing tenants and claim credits from acquisition.
CORRECT ANSWER : -120 days after acquisition to qualify
existing tenants and claim credits from acquisition.
Question : In the project example from appendix C (course
manual pg. 525), the equity from the credit sale means that:
CORRECT ANSWER : The tax credit project's mortgage
will be less than that of the conventional property, providing less debt and greater affordability.
Question : When conducting physical inspections for LIHTC,
most state agencies use:
CORRECT ANSWER : HUD's Uniform Physical Condition
Standards (UPCS)
Question : The two most important line items for management
purposes under Part II of IRS Form 8609 are:
CORRECT ANSWER : 8B and 10C
Question : IRS Form 8823 is used to:
CORRECT ANSWER : Report non-compliance to the IRS
by the State Agency
Question : A tax credit disallowance prevents credits from
being claimed by the owner:
CORRECT ANSWER : for the current year
Question : LIHTC resyndication means that: