HCCP TEST BANK COMPLETE SOLVED
QUESTIONS EXPERT REVIEW FULL
SOLUTION
●● Who enacted the low income housing tax credit program?
Answer: Congress did as part of the tax reform act of 1986
●● What does the low income housing tax credit program operate
under?
Answer: Under Section 42 of the Internal revenue code
●● Who is responsible for all LIHTC rules
Answer: IRS
●● Who has the power to deny or recapture tax credits
Answer: IRS
●● What is an HFA
Answer: State housing finance agency
●● Who monitors compliance?
Answer: HFA OR DCA (state)
, ●● Who is responsible for the allocation of tax credits
Answer: DCA or state
●● Who buys the tax credit
Answer: Syndicator
●● Project set aside
Answer: Minimum number of units in the project that must be set aside
as low income
●● Where do you choose your project set aside
Answer: One time election made in form 8609 and is irrevocable
●● What are the three choices of set asides?
Answer: 20/50, 40/60, average income test
●● Explain 20/50 set aside
Answer: At least 20% of the total units must be occupied by households
whose incomes and rents are 50% or less of the AMI (area median
income)
●● Explain 40/60 set aside
QUESTIONS EXPERT REVIEW FULL
SOLUTION
●● Who enacted the low income housing tax credit program?
Answer: Congress did as part of the tax reform act of 1986
●● What does the low income housing tax credit program operate
under?
Answer: Under Section 42 of the Internal revenue code
●● Who is responsible for all LIHTC rules
Answer: IRS
●● Who has the power to deny or recapture tax credits
Answer: IRS
●● What is an HFA
Answer: State housing finance agency
●● Who monitors compliance?
Answer: HFA OR DCA (state)
, ●● Who is responsible for the allocation of tax credits
Answer: DCA or state
●● Who buys the tax credit
Answer: Syndicator
●● Project set aside
Answer: Minimum number of units in the project that must be set aside
as low income
●● Where do you choose your project set aside
Answer: One time election made in form 8609 and is irrevocable
●● What are the three choices of set asides?
Answer: 20/50, 40/60, average income test
●● Explain 20/50 set aside
Answer: At least 20% of the total units must be occupied by households
whose incomes and rents are 50% or less of the AMI (area median
income)
●● Explain 40/60 set aside
