Tax Credit Specialist Exam Questions and
Correct Answers
Question 1
A tax credit disallowance prevents credits from being claimed by the owner:
Correct Answer
for the current year
Question 2
It is suggested that many of the documents discussed in this class be contained:
Correct Answer
In a project data file
Question 3
In order for a household comprised entirely of full-time students to qualify for LIHTC,
then:
Correct Answer
One of the five exceptions for student eligibility must be met
Question 4
If the average income target for a LIHTC project's minimum set-aside drops below
40% of the project's unit averaging at or below 60% AMI after the first year of the
credit period, then:
Correct Answer
No credits would be available to the owner during that taxable year
Page 1 of 24
,Question 5
Acquisition/Rehab projects generally place in service at acquisition and are given:
Correct Answer
-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.
Question 6
The IRS considered full-time students to be those that meet their educational
institution's definition of full-time and attend classes for at least:
Correct Answer
Five months of the calendar year
Question 7
The students status of tenant household members is:
Correct Answer
Taken into consideration for eligibility at all times
Question 8
Citizenship as a tenant eligibility requirement for LIHTC:
Correct Answer
At the Owner's discretion
Question 9
Compliance reporting requirements for LIHTC is at the discretion of the State Housing
Agency, but the following is not:
Correct Answer
Owner's Certification of Continuing Program Compliance
Page 2 of 24
, Question 10
A life insurance policy that has surrender value is:
Correct Answer
Counted among a family's net assets
(Exhibit 5-2A7, Course Manual pg. 179)
Question 11
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 12
When conducting physical inspections for LIHTC, most state agencies use:
Correct Answer
HUD's Uniform Physical Condition Standards (UPCS)
Question 13
The Following legislation includes provisions for LIHTC:
Correct Answer
HERA
ARRA
VAWA
Question 14
Hold Harmless for LIHTC income limits means that:
Correct Answer
They are held to the highest limits from Placed in Service
Page 3 of 24
Correct Answers
Question 1
A tax credit disallowance prevents credits from being claimed by the owner:
Correct Answer
for the current year
Question 2
It is suggested that many of the documents discussed in this class be contained:
Correct Answer
In a project data file
Question 3
In order for a household comprised entirely of full-time students to qualify for LIHTC,
then:
Correct Answer
One of the five exceptions for student eligibility must be met
Question 4
If the average income target for a LIHTC project's minimum set-aside drops below
40% of the project's unit averaging at or below 60% AMI after the first year of the
credit period, then:
Correct Answer
No credits would be available to the owner during that taxable year
Page 1 of 24
,Question 5
Acquisition/Rehab projects generally place in service at acquisition and are given:
Correct Answer
-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.
Question 6
The IRS considered full-time students to be those that meet their educational
institution's definition of full-time and attend classes for at least:
Correct Answer
Five months of the calendar year
Question 7
The students status of tenant household members is:
Correct Answer
Taken into consideration for eligibility at all times
Question 8
Citizenship as a tenant eligibility requirement for LIHTC:
Correct Answer
At the Owner's discretion
Question 9
Compliance reporting requirements for LIHTC is at the discretion of the State Housing
Agency, but the following is not:
Correct Answer
Owner's Certification of Continuing Program Compliance
Page 2 of 24
, Question 10
A life insurance policy that has surrender value is:
Correct Answer
Counted among a family's net assets
(Exhibit 5-2A7, Course Manual pg. 179)
Question 11
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 12
When conducting physical inspections for LIHTC, most state agencies use:
Correct Answer
HUD's Uniform Physical Condition Standards (UPCS)
Question 13
The Following legislation includes provisions for LIHTC:
Correct Answer
HERA
ARRA
VAWA
Question 14
Hold Harmless for LIHTC income limits means that:
Correct Answer
They are held to the highest limits from Placed in Service
Page 3 of 24
