HOUSING CHOICE VOUCHER FINAL
PAPER 2026 TEST PAPER QUESTIONS AND
SOLUTIONS GRADED A+
● Demand-side subsidy. Answer: percentage contribution to rent
(housing voucher)
● The large portion of federal tax expenditures on housing is on
supporting affordable housing. T/F. Answer: False
● According to the chart used in the lecture, GAO (U.S. Government
Accountability Office) reported largest categories for annual federal tax
expenditures. What was the amount of tax expenditure on mortgage
interest deduction in 2012?. Answer: 80 billion
● How many million affordable rental units have LIHTC helped create
through 2006?. Answer: 1.6
● Which of the following is NOT a supply-side subsidy?
public housing
housing choice vouchers
section 515
section 236. Answer: housing choice vouchers
,● Vertical equity is a cornerstone for tax collection. The idea is that
individuals with similar income and assets should pay the same amount
in taxes. T/F. Answer: false
● vertical equity. Answer: refers to the idea that people on higher
incomes should take on a greater share of the responsibility for paying
for public services
● Homeownership subsidy is neither fair with respect to sharing the tax
burden between income groups, nor efficient in terms of increasing
homeownership rates. T/F. Answer: true
● The 10-year treasury note is a debt obligation issued by the United
States government that matures in 10 years. It is essentially a loan that
investors, such as you and me, make to the U.S. government. They tend
to have a low yield since they are considered as very safe. In the
aftermath of the Great Recession in 2008, the yield of LIHTC became
much larger than that of the 10-year treasury showing that LIHTC
became less attractive to investors.. Answer: true
● LIHTC is a form of deep subsidy as it supports ongoing operation.
T/F. Answer: false
● deep subsidy. Answer: eligible households only pay specific
percentage of income towards rent
, ● shallow subsidy. Answer: rent is below market level, not based on
percentage of tenant's income
● Since LIHTC is a federal program, states and local jurisdictions have
no say in granting LIHTC. T/F. Answer: false
● LIHTC does not require for Congressional appropriation and it
benefits a bigger population than that of the Section 8 Voucher program.
T/F. Answer: true
● Affordable housing policy is aimed at desegregation and poverty
deconcentration. However, vouchers holders are not living in
neighborhoods with low poverty rates or areas with predominantly white
populations. Which of the following is NOT a reason?
fear of moving away
lack of family support
lack of jobs
lack of affordable units in affluent areas. Answer: lack of jobs
● The Quality Housing and Work Responsibility Act of 1998 merged
the certificate and voucher programs in to a single program, called the
Housing Choice Voucher program (HCV). Which of the following is
FALSE about HCV?
-By 2009, vouchers assisted more than 2.2 million households.
PAPER 2026 TEST PAPER QUESTIONS AND
SOLUTIONS GRADED A+
● Demand-side subsidy. Answer: percentage contribution to rent
(housing voucher)
● The large portion of federal tax expenditures on housing is on
supporting affordable housing. T/F. Answer: False
● According to the chart used in the lecture, GAO (U.S. Government
Accountability Office) reported largest categories for annual federal tax
expenditures. What was the amount of tax expenditure on mortgage
interest deduction in 2012?. Answer: 80 billion
● How many million affordable rental units have LIHTC helped create
through 2006?. Answer: 1.6
● Which of the following is NOT a supply-side subsidy?
public housing
housing choice vouchers
section 515
section 236. Answer: housing choice vouchers
,● Vertical equity is a cornerstone for tax collection. The idea is that
individuals with similar income and assets should pay the same amount
in taxes. T/F. Answer: false
● vertical equity. Answer: refers to the idea that people on higher
incomes should take on a greater share of the responsibility for paying
for public services
● Homeownership subsidy is neither fair with respect to sharing the tax
burden between income groups, nor efficient in terms of increasing
homeownership rates. T/F. Answer: true
● The 10-year treasury note is a debt obligation issued by the United
States government that matures in 10 years. It is essentially a loan that
investors, such as you and me, make to the U.S. government. They tend
to have a low yield since they are considered as very safe. In the
aftermath of the Great Recession in 2008, the yield of LIHTC became
much larger than that of the 10-year treasury showing that LIHTC
became less attractive to investors.. Answer: true
● LIHTC is a form of deep subsidy as it supports ongoing operation.
T/F. Answer: false
● deep subsidy. Answer: eligible households only pay specific
percentage of income towards rent
, ● shallow subsidy. Answer: rent is below market level, not based on
percentage of tenant's income
● Since LIHTC is a federal program, states and local jurisdictions have
no say in granting LIHTC. T/F. Answer: false
● LIHTC does not require for Congressional appropriation and it
benefits a bigger population than that of the Section 8 Voucher program.
T/F. Answer: true
● Affordable housing policy is aimed at desegregation and poverty
deconcentration. However, vouchers holders are not living in
neighborhoods with low poverty rates or areas with predominantly white
populations. Which of the following is NOT a reason?
fear of moving away
lack of family support
lack of jobs
lack of affordable units in affluent areas. Answer: lack of jobs
● The Quality Housing and Work Responsibility Act of 1998 merged
the certificate and voucher programs in to a single program, called the
Housing Choice Voucher program (HCV). Which of the following is
FALSE about HCV?
-By 2009, vouchers assisted more than 2.2 million households.
