HCCP CORRECT UPDATED QUESTIONS AND
ANSWERS SET A+
✔✔NAUR - Next Available Unit Rule - ✔✔Comparable or smaller in the same building-
not including OI units - does not apply to 100% projects - IRS considers a violation if
found to rent a LIHTC unit as market unit
✔✔Deep Skewed Projects - ✔✔When household exceeds 170% - next available must
be rented to LIHTC regardless of size
✔✔NAUR - Non-Compliance - ✔✔If NAUR is not followed all OI units no longer treated
as LIHTC units
✔✔First Year Transfer - ✔✔Household can only qualify for one unit - ex. if household
#101 transfers within 6mo to 202 the only qualify for unit 202 and #101 will not receive
full credit if it is not occupied by 12-31 of that year.
✔✔Fair Housing Act Design - ✔✔Property's unit and common areas
✔✔ADA Design - ✔✔Public areas of the property - parking lots and leasing office
✔✔Bond program - ✔✔NAUR is a project rule
✔✔Bond combined w/LIHTC - ✔✔1. Bond adopts LIHTC rule which is a building rule
2. Bonds not permitted to use National Non-Metro Income Limits
✔✔Resyndication - ✔✔1. Building reaches end of compliance period and owner applies
for new credits
2. Once a new set of credits are extended the project is no longer eligible to use HERA -
PIS date will change with the new credits
3. Once ext use period expires income is no longer grandfathered in for existing tenants
✔✔ Units that support tax credits meet the following requirements - ✔✔I- income limits
, R- rent limits
S- safe and sanitary
✔✔General Partner - ✔✔An owner (partner) who has unlimited liability and is active in
managing the firm.
✔✔Limited Partnership (LP) - ✔✔A partnership in which one or more partners have
limited liability as long as at least one partner (the general partner) has unlimited
liability. The limited partners are passive investors that cannot take an active role in the
firm's management.
✔✔syndicator - ✔✔Facilitate the GP and LP relationship. Syndicator combine multiple
projects into a single fund, and then offer shares in the fund to individual investors
✔✔State HFAs are often called - ✔✔State agencies or state allocating agencies
✔✔State HFA's are used by the IRS to carry out two primary functions - ✔✔The
allocation of credits and compliance monitoring
✔✔The ceiling on the amount that can be allocated is - ✔✔Adjusted for inflation each
year and is based on a states population
✔✔Allocation rules are spelled out in a - ✔✔Qualified allocation plan (QAP)
✔✔Applications are scored according to the - ✔✔QAP, and credits are awarded
accordingly
✔✔A notable exception is reporting of non compliance to the IRS - ✔✔Using form 8823
✔✔Uniform physical conditions standards (UPCS) - ✔✔The states use ______ for local
code for physical inspections
✔✔Household income for tax credit properties is determined in a manner consistent
with - ✔✔Section 8 housing rules
✔✔When this document is changed by HUD. The tax credit income and asset rules
change with it - ✔✔HUD handbook 4350.3
✔✔A tenant income certification and supporting documentation are not sufficient unless,
at minimum the following documents are included - ✔✔1. Household application/income
and asset questionnaire
2. Verification of income and assets
3. Student status
4. Tenant income certification (TIC)
ANSWERS SET A+
✔✔NAUR - Next Available Unit Rule - ✔✔Comparable or smaller in the same building-
not including OI units - does not apply to 100% projects - IRS considers a violation if
found to rent a LIHTC unit as market unit
✔✔Deep Skewed Projects - ✔✔When household exceeds 170% - next available must
be rented to LIHTC regardless of size
✔✔NAUR - Non-Compliance - ✔✔If NAUR is not followed all OI units no longer treated
as LIHTC units
✔✔First Year Transfer - ✔✔Household can only qualify for one unit - ex. if household
#101 transfers within 6mo to 202 the only qualify for unit 202 and #101 will not receive
full credit if it is not occupied by 12-31 of that year.
✔✔Fair Housing Act Design - ✔✔Property's unit and common areas
✔✔ADA Design - ✔✔Public areas of the property - parking lots and leasing office
✔✔Bond program - ✔✔NAUR is a project rule
✔✔Bond combined w/LIHTC - ✔✔1. Bond adopts LIHTC rule which is a building rule
2. Bonds not permitted to use National Non-Metro Income Limits
✔✔Resyndication - ✔✔1. Building reaches end of compliance period and owner applies
for new credits
2. Once a new set of credits are extended the project is no longer eligible to use HERA -
PIS date will change with the new credits
3. Once ext use period expires income is no longer grandfathered in for existing tenants
✔✔ Units that support tax credits meet the following requirements - ✔✔I- income limits
, R- rent limits
S- safe and sanitary
✔✔General Partner - ✔✔An owner (partner) who has unlimited liability and is active in
managing the firm.
✔✔Limited Partnership (LP) - ✔✔A partnership in which one or more partners have
limited liability as long as at least one partner (the general partner) has unlimited
liability. The limited partners are passive investors that cannot take an active role in the
firm's management.
✔✔syndicator - ✔✔Facilitate the GP and LP relationship. Syndicator combine multiple
projects into a single fund, and then offer shares in the fund to individual investors
✔✔State HFAs are often called - ✔✔State agencies or state allocating agencies
✔✔State HFA's are used by the IRS to carry out two primary functions - ✔✔The
allocation of credits and compliance monitoring
✔✔The ceiling on the amount that can be allocated is - ✔✔Adjusted for inflation each
year and is based on a states population
✔✔Allocation rules are spelled out in a - ✔✔Qualified allocation plan (QAP)
✔✔Applications are scored according to the - ✔✔QAP, and credits are awarded
accordingly
✔✔A notable exception is reporting of non compliance to the IRS - ✔✔Using form 8823
✔✔Uniform physical conditions standards (UPCS) - ✔✔The states use ______ for local
code for physical inspections
✔✔Household income for tax credit properties is determined in a manner consistent
with - ✔✔Section 8 housing rules
✔✔When this document is changed by HUD. The tax credit income and asset rules
change with it - ✔✔HUD handbook 4350.3
✔✔A tenant income certification and supporting documentation are not sufficient unless,
at minimum the following documents are included - ✔✔1. Household application/income
and asset questionnaire
2. Verification of income and assets
3. Student status
4. Tenant income certification (TIC)
