Minnesota Housing Program Compliance Officer Exam Practice
Questions & [Verified Answers], Plus Explained Rationales | 2026
Latest Update | Instant Download PDF | 250 Questions
Questions 1–250
1. Which agency is primarily responsible for administering housing finance programs in Minnesota?
A) U.S. Department of Housing and Urban Development (HUD)
B) Minnesota Housing Finance Agency (Minnesota Housing)
C) Minnesota Department of Commerce
D) Federal Housing Administration (FHA)
Answer B: Minnesota Housing Finance Agency (Minnesota Housing)
Rationale: Minnesota Housing (MHFA) is the state agency that administers housing finance programs,
including tax credits, loans, and grants for affordable housing.
2. What is the primary mission of Minnesota Housing Finance Agency?
A) To maximize profits for housing developers
B) To ensure the availability of decent, safe, energy-efficient, and affordable housing for low- and moderate-
income households
C) To regulate all real estate transactions in Minnesota
D) To provide housing exclusively for homeless individuals
Answer B: To ensure the availability of decent, safe, energy-efficient, and affordable housing for low-
and moderate-income households
,Rationale: Minnesota Housing's mission is to provide affordable housing opportunities for low- and
moderate-income Minnesotans.
3. The Minnesota Housing Finance Agency is governed by:
A) The U.S. Congress
B) A board of directors appointed by the Governor
C) The Minnesota Legislature directly
D) The Federal Reserve
Answer B: A board of directors appointed by the Governor
Rationale: MHFA is governed by a board of directors appointed by the Governor.
4. Which federal law provides the foundation for the Low-Income Housing Tax Credit (LIHTC)
program?
A) Section 8 of the Housing Act of 1937
B) Section 42 of the Internal Revenue Code
C) Section 202 of the Housing Act of 1959
D) Section 811 of the Cranston-Gonzalez Act
Answer B: Section 42 of the Internal Revenue Code
Rationale: Section 42 of the Internal Revenue Code establishes the LIHTC program.
5. What is the purpose of the Low-Income Housing Tax Credit (LIHTC) program?
A) To provide direct rental subsidies to tenants
B) To provide tax credits to developers to incentivize the production of affordable rental housing
C) To fund homeownership programs for first-time buyers
D) To subsidize utility costs for low-income households
Answer B: To provide tax credits to developers to incentivize the production of affordable rental
housing
Rationale: LIHTC encourages private investment in affordable rental housing through tax credits.
6. The Housing Tax Credit (HTC) Compliance Guide is designed to:
A) Increase developer profits
,B) Set forth the procedures to be followed by Minnesota Housing and owners of HTC projects to comply with
Section 42 and Treasury Regulations
C) Eliminate all compliance requirements
D) Reduce the number of affordable housing units
Answer B: Set forth the procedures to be followed by Minnesota Housing and owners of HTC projects
to comply with Section 42 and Treasury Regulations
Rationale: The HTC Compliance Guide provides the framework for Section 42 compliance.
7. At what percentage of Area Median Income (AMI) must at least 90% of HOME Program Assisted
Units be initially occupied?
A) 50% or below
B) 60% or below
C) 80% or below
D) 100% or below
Answer B: 60% or below
Rationale: HOME regulations require that at least 90% of assisted units be initially occupied by families at or
below 60% of AMI.
8. Which Minnesota Housing program provides financing to help preserve or increase the supply of
decent, safe, and sanitary affordable housing for low-income households?
A) Section 8 Voucher Program
B) HOME Investment Partnerships (HOME) Program
C) Low-Income Housing Tax Credit (LIHTC)
D) Minnesota Supplemental Housing Fund
Answer B: HOME Investment Partnerships (HOME) Program
Rationale: The HOME Program, administered by Minnesota Housing since 1992, provides financing for
affordable housing.
9. The National Housing Trust Fund (NHTF) program is designed to:
A) Provide homeownership assistance
B) Increase and preserve the supply of rental housing for extremely low-income households
C) Fund commercial real estate development
D) Support market-rate housing construction
, Answer B: Increase and preserve the supply of rental housing for extremely low-income households
Rationale: NHTF focuses on rental housing for extremely low-income households (at or below 30% of AMI).
10. Which federal regulation applies to projects awarded HOME or NHTF Program funds from
Minnesota Housing from Federal Fiscal Year 2024 or later?
A) Davis-Bacon Act
B) Build America, Buy America (BABA) Act
C) Fair Housing Act
D) Section 504 of the Rehabilitation Act
Answer B: Build America, Buy America (BABA) Act
Rationale: BABA requirements apply to HOME and NHTF projects awarded from FY 2024 onward.
11. Which Minnesota statute requires applicants for Minnesota Housing funding to disclose wage
theft-related violations from the past five years?
A) Minnesota Statute 462A.01
B) Minnesota Statute 462A.051
C) Minnesota Statute 462A.10
D) Minnesota Statute 462A.20
Answer B: Minnesota Statute 462A.051
Rationale: Minn. Stat. § 462A.051 requires disclosure of wage theft violations for funding eligibility.
12. What is the primary purpose of the Qualified Allocation Plan (QAP)?
A) To eliminate all tax credits
B) To determine the policy priorities and the process by which Minnesota Housing manages the federal Low-
Income Housing Tax Credit Program
C) To set rent limits for all housing in Minnesota
D) To regulate property management companies
Answer B: To determine the policy priorities and the process by which Minnesota Housing manages
the federal Low-Income Housing Tax Credit Program
Rationale: The QAP sets funding selection priorities for the competitive Multifamily HTC funding rounds.
13. When must owners complete the Annual Owner Certification for Minnesota Housing programs?
Questions & [Verified Answers], Plus Explained Rationales | 2026
Latest Update | Instant Download PDF | 250 Questions
Questions 1–250
1. Which agency is primarily responsible for administering housing finance programs in Minnesota?
A) U.S. Department of Housing and Urban Development (HUD)
B) Minnesota Housing Finance Agency (Minnesota Housing)
C) Minnesota Department of Commerce
D) Federal Housing Administration (FHA)
Answer B: Minnesota Housing Finance Agency (Minnesota Housing)
Rationale: Minnesota Housing (MHFA) is the state agency that administers housing finance programs,
including tax credits, loans, and grants for affordable housing.
2. What is the primary mission of Minnesota Housing Finance Agency?
A) To maximize profits for housing developers
B) To ensure the availability of decent, safe, energy-efficient, and affordable housing for low- and moderate-
income households
C) To regulate all real estate transactions in Minnesota
D) To provide housing exclusively for homeless individuals
Answer B: To ensure the availability of decent, safe, energy-efficient, and affordable housing for low-
and moderate-income households
,Rationale: Minnesota Housing's mission is to provide affordable housing opportunities for low- and
moderate-income Minnesotans.
3. The Minnesota Housing Finance Agency is governed by:
A) The U.S. Congress
B) A board of directors appointed by the Governor
C) The Minnesota Legislature directly
D) The Federal Reserve
Answer B: A board of directors appointed by the Governor
Rationale: MHFA is governed by a board of directors appointed by the Governor.
4. Which federal law provides the foundation for the Low-Income Housing Tax Credit (LIHTC)
program?
A) Section 8 of the Housing Act of 1937
B) Section 42 of the Internal Revenue Code
C) Section 202 of the Housing Act of 1959
D) Section 811 of the Cranston-Gonzalez Act
Answer B: Section 42 of the Internal Revenue Code
Rationale: Section 42 of the Internal Revenue Code establishes the LIHTC program.
5. What is the purpose of the Low-Income Housing Tax Credit (LIHTC) program?
A) To provide direct rental subsidies to tenants
B) To provide tax credits to developers to incentivize the production of affordable rental housing
C) To fund homeownership programs for first-time buyers
D) To subsidize utility costs for low-income households
Answer B: To provide tax credits to developers to incentivize the production of affordable rental
housing
Rationale: LIHTC encourages private investment in affordable rental housing through tax credits.
6. The Housing Tax Credit (HTC) Compliance Guide is designed to:
A) Increase developer profits
,B) Set forth the procedures to be followed by Minnesota Housing and owners of HTC projects to comply with
Section 42 and Treasury Regulations
C) Eliminate all compliance requirements
D) Reduce the number of affordable housing units
Answer B: Set forth the procedures to be followed by Minnesota Housing and owners of HTC projects
to comply with Section 42 and Treasury Regulations
Rationale: The HTC Compliance Guide provides the framework for Section 42 compliance.
7. At what percentage of Area Median Income (AMI) must at least 90% of HOME Program Assisted
Units be initially occupied?
A) 50% or below
B) 60% or below
C) 80% or below
D) 100% or below
Answer B: 60% or below
Rationale: HOME regulations require that at least 90% of assisted units be initially occupied by families at or
below 60% of AMI.
8. Which Minnesota Housing program provides financing to help preserve or increase the supply of
decent, safe, and sanitary affordable housing for low-income households?
A) Section 8 Voucher Program
B) HOME Investment Partnerships (HOME) Program
C) Low-Income Housing Tax Credit (LIHTC)
D) Minnesota Supplemental Housing Fund
Answer B: HOME Investment Partnerships (HOME) Program
Rationale: The HOME Program, administered by Minnesota Housing since 1992, provides financing for
affordable housing.
9. The National Housing Trust Fund (NHTF) program is designed to:
A) Provide homeownership assistance
B) Increase and preserve the supply of rental housing for extremely low-income households
C) Fund commercial real estate development
D) Support market-rate housing construction
, Answer B: Increase and preserve the supply of rental housing for extremely low-income households
Rationale: NHTF focuses on rental housing for extremely low-income households (at or below 30% of AMI).
10. Which federal regulation applies to projects awarded HOME or NHTF Program funds from
Minnesota Housing from Federal Fiscal Year 2024 or later?
A) Davis-Bacon Act
B) Build America, Buy America (BABA) Act
C) Fair Housing Act
D) Section 504 of the Rehabilitation Act
Answer B: Build America, Buy America (BABA) Act
Rationale: BABA requirements apply to HOME and NHTF projects awarded from FY 2024 onward.
11. Which Minnesota statute requires applicants for Minnesota Housing funding to disclose wage
theft-related violations from the past five years?
A) Minnesota Statute 462A.01
B) Minnesota Statute 462A.051
C) Minnesota Statute 462A.10
D) Minnesota Statute 462A.20
Answer B: Minnesota Statute 462A.051
Rationale: Minn. Stat. § 462A.051 requires disclosure of wage theft violations for funding eligibility.
12. What is the primary purpose of the Qualified Allocation Plan (QAP)?
A) To eliminate all tax credits
B) To determine the policy priorities and the process by which Minnesota Housing manages the federal Low-
Income Housing Tax Credit Program
C) To set rent limits for all housing in Minnesota
D) To regulate property management companies
Answer B: To determine the policy priorities and the process by which Minnesota Housing manages
the federal Low-Income Housing Tax Credit Program
Rationale: The QAP sets funding selection priorities for the competitive Multifamily HTC funding rounds.
13. When must owners complete the Annual Owner Certification for Minnesota Housing programs?
