MASTERING LIHTC COMPLIANCE -
PROPERTY COMPLIANCE QUESTIONS
AND ANSWERS 100% CORRECT
Tax Credits - ANSWER-LIHTC credits offset dollar for dollar a party's tax liability. No a
federal subsidy program, but can be coupled with FED programs to provide residents
with rental assistance
to retain credits, developments must: - ANSWER-1. Rent to qualified households
2. Keep rents affordable
3. keep the property decent safe and sanitary
General Partner - ANSWER-Managing member in an LLC. The developer is who
typically formulates the project or rehab, applies the Tax Credits and receives the
allocation.
Limited Partner - ANSWER-non-managing member for an LLC. Provides the general
partner with money to build the property. Owns a majority of the property therefore they
can take advantage of the tax credits the property can produce. assumes little to no risk.
syndicator - ANSWER-helps facilitate communication between the general partner and
the limited partner and can also be a general partner
calculating rent limits - ANSWER-The 30% is considered a reasonable percentage of
the household's income to pay rent. when converting annual rent limits to the monthly
rent limits, "cents" are rounded down --- monthly rent limit = income limit * 30% / 12
Utility Allowance - ANSWER-must be updated at least annually and be implemented
within 90 days of announced change/comment date -- state needs to know when you
want to implement new ones.
Max Allowable Gross Rent - ANSWER-rent must be determined and fall below the max
allowable rent limit less applicable fees and required utility allowance on a monthly
annual basis.
max rent limit - UA - non-optional charges = tenant paid rents
Non-profit Organizations - ANSWER-must be in the community overseeing
management. a minimum of 10% of a state's allocated tax credits must be awarded to
the organizations
PROPERTY COMPLIANCE QUESTIONS
AND ANSWERS 100% CORRECT
Tax Credits - ANSWER-LIHTC credits offset dollar for dollar a party's tax liability. No a
federal subsidy program, but can be coupled with FED programs to provide residents
with rental assistance
to retain credits, developments must: - ANSWER-1. Rent to qualified households
2. Keep rents affordable
3. keep the property decent safe and sanitary
General Partner - ANSWER-Managing member in an LLC. The developer is who
typically formulates the project or rehab, applies the Tax Credits and receives the
allocation.
Limited Partner - ANSWER-non-managing member for an LLC. Provides the general
partner with money to build the property. Owns a majority of the property therefore they
can take advantage of the tax credits the property can produce. assumes little to no risk.
syndicator - ANSWER-helps facilitate communication between the general partner and
the limited partner and can also be a general partner
calculating rent limits - ANSWER-The 30% is considered a reasonable percentage of
the household's income to pay rent. when converting annual rent limits to the monthly
rent limits, "cents" are rounded down --- monthly rent limit = income limit * 30% / 12
Utility Allowance - ANSWER-must be updated at least annually and be implemented
within 90 days of announced change/comment date -- state needs to know when you
want to implement new ones.
Max Allowable Gross Rent - ANSWER-rent must be determined and fall below the max
allowable rent limit less applicable fees and required utility allowance on a monthly
annual basis.
max rent limit - UA - non-optional charges = tenant paid rents
Non-profit Organizations - ANSWER-must be in the community overseeing
management. a minimum of 10% of a state's allocated tax credits must be awarded to
the organizations
