Income Housing Tax Credit Exam And
Correct Answers.
Low-Income Housing Tax Credit - Answer One of the federal government's primary policy tools for
encouraging the development and rehabilitation of affordable rental housing
Affordable Rental Housing - Answer Nice apartments that are intended to be rented by people who fall
into the low income designation
Qualified Rental Projects - Answer *Projects that meet the criteria to receive nonrefundable federal
housing tax credits
Housing Finance Authorities - Answer State-chartered authorities established to help meet the
affordable housing needs of the residents of their states.
Allocation - Answer Process that begins at the federal level with each state receiving an annual LIHTC
allocation in accordance with federal law
Qualified Allocation Plans (QAP) - Answer Sets out the state's eligibility priorities and criteria for
awarding federal tax credits to housing properties
Income Test - Answer Determines the maximum income a LIHTC tenant may have
Extended Use Period - Answer Although tax credits are claimed annually over 10 years, the investment
compliance period continues until the end of the 15th year, and the project must remain affordable for
at least 30 years. This 30-year restriction period, including the 15-year compliance period
Correct Answers.
Low-Income Housing Tax Credit - Answer One of the federal government's primary policy tools for
encouraging the development and rehabilitation of affordable rental housing
Affordable Rental Housing - Answer Nice apartments that are intended to be rented by people who fall
into the low income designation
Qualified Rental Projects - Answer *Projects that meet the criteria to receive nonrefundable federal
housing tax credits
Housing Finance Authorities - Answer State-chartered authorities established to help meet the
affordable housing needs of the residents of their states.
Allocation - Answer Process that begins at the federal level with each state receiving an annual LIHTC
allocation in accordance with federal law
Qualified Allocation Plans (QAP) - Answer Sets out the state's eligibility priorities and criteria for
awarding federal tax credits to housing properties
Income Test - Answer Determines the maximum income a LIHTC tenant may have
Extended Use Period - Answer Although tax credits are claimed annually over 10 years, the investment
compliance period continues until the end of the 15th year, and the project must remain affordable for
at least 30 years. This 30-year restriction period, including the 15-year compliance period
