TAX CREDIT SPECIALIST EXAM
2025/2026 QUESTIONS AND ANSWERS
(GRADED A+)
Internal Revenue Service (IRS) - ANSWER-Who is responsible for most of the
regulatory administration of the Low-Income Housing Tax Credit Programs?
30 years - ANSWER-The initial Compliance Period for LIHTC properties combined with
the Extended Use Period must be for a minimum period of affordability at:
HUD Handbook 4350.3 REV-1 - ANSWER-The LIHTC regulations required that HUD
guidance for properly identifying and calculating income and assets be followed
according to:
Required for LIHTC income verifications - ANSWER-Use of HUD's Enterprise Income
Verification (EIV) system is:
HERA
ARRA
VAWA - ANSWER-The Following legislation includes provisions for LIHTC:
Three years - ANSWER-The first three stages in the life of a LIHTC property generally
occurs within:
A portion of that year's tax credits will be held in reserve for a project - ANSWER-A
reservation Letter received at the end of the Application Stage for LIHTC means that:
Their 10% tests have been met - ANSWER-Carryover Allocations are issued by SHFAs
for LIHTC projects when:
-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. - ANSWER-Acquisition/Rehab projects generally place in service at
acquisition and are given:
A standard of sufficiency as determined by the State Housing Finance Agency
(LIHC Newsletter #54, Course Manual pg. 473) - ANSWER-Income verification for
LIHTC must be conducted according to:
Live-in aides
, (Figure 5-2, page 5-8, Course Manual pg. 86) - ANSWER-According to HUD, assets
and asset income should be counted for all of the following except:
0.06%
(Notice H2016-01, Course Manual pg. 213) - ANSWER-The current HUD-approved
Passbook Savings Rate for use when imputing income from assets is:
They are counted as annual income and the remaining amounts are not counted as an
asset
(Paragraph 5-7G4b & d, pages 5-36 to 5-37, Course Manual pg. 114 to 115) -
ANSWER-If periodic payments are being received from retirement benefits, then:
The tax credit project's mortgage will be less than that of the conventional property,
providing less debt and greater affordability. - ANSWER-In the project example from
appendix C (course manual pg. 525), the equity from the credit sale means that:
HUD's Uniform Physical Condition Standards (UPCS) - ANSWER-When conducting
physical inspections for LIHTC, most state agencies use:
8B and 10C - ANSWER-The two most important line items for management purposes
under Part II of IRS Form 8609 are:
Report non-compliance to the IRS by the State Agency - ANSWER-IRS Form 8823 is
used to:
for the current year - ANSWER-A tax credit disallowance prevents credits from being
claimed by the owner:
Owners receive a second allocation of tax credits for an existing LIHTC property -
ANSWER-LIHTC resyndication means that:
Determination of income under section 8 of the US Housing Act of 1937
(IRS Notice 88-80, Course Manual pg. 447) - ANSWER-For LIHTC, an individual's
income is determined in a manner consistent with:
Employment Income
(Figure 5-2, Page 5-8, Course Manual pg. 86) - ANSWER-Income for Foster Children
under the age of 18 is counted except for:
All financial assistance in excess of tuition and mandatory fees is included in annual
income, with two exceptions
(Paragraph 5-6E, page 5-11, Course Manual pg. 89) - ANSWER-When section 8
assistance is provided for LIHTC tenant and they are receiving educational scholarships
or grants, then:
26
2025/2026 QUESTIONS AND ANSWERS
(GRADED A+)
Internal Revenue Service (IRS) - ANSWER-Who is responsible for most of the
regulatory administration of the Low-Income Housing Tax Credit Programs?
30 years - ANSWER-The initial Compliance Period for LIHTC properties combined with
the Extended Use Period must be for a minimum period of affordability at:
HUD Handbook 4350.3 REV-1 - ANSWER-The LIHTC regulations required that HUD
guidance for properly identifying and calculating income and assets be followed
according to:
Required for LIHTC income verifications - ANSWER-Use of HUD's Enterprise Income
Verification (EIV) system is:
HERA
ARRA
VAWA - ANSWER-The Following legislation includes provisions for LIHTC:
Three years - ANSWER-The first three stages in the life of a LIHTC property generally
occurs within:
A portion of that year's tax credits will be held in reserve for a project - ANSWER-A
reservation Letter received at the end of the Application Stage for LIHTC means that:
Their 10% tests have been met - ANSWER-Carryover Allocations are issued by SHFAs
for LIHTC projects when:
-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. - ANSWER-Acquisition/Rehab projects generally place in service at
acquisition and are given:
A standard of sufficiency as determined by the State Housing Finance Agency
(LIHC Newsletter #54, Course Manual pg. 473) - ANSWER-Income verification for
LIHTC must be conducted according to:
Live-in aides
, (Figure 5-2, page 5-8, Course Manual pg. 86) - ANSWER-According to HUD, assets
and asset income should be counted for all of the following except:
0.06%
(Notice H2016-01, Course Manual pg. 213) - ANSWER-The current HUD-approved
Passbook Savings Rate for use when imputing income from assets is:
They are counted as annual income and the remaining amounts are not counted as an
asset
(Paragraph 5-7G4b & d, pages 5-36 to 5-37, Course Manual pg. 114 to 115) -
ANSWER-If periodic payments are being received from retirement benefits, then:
The tax credit project's mortgage will be less than that of the conventional property,
providing less debt and greater affordability. - ANSWER-In the project example from
appendix C (course manual pg. 525), the equity from the credit sale means that:
HUD's Uniform Physical Condition Standards (UPCS) - ANSWER-When conducting
physical inspections for LIHTC, most state agencies use:
8B and 10C - ANSWER-The two most important line items for management purposes
under Part II of IRS Form 8609 are:
Report non-compliance to the IRS by the State Agency - ANSWER-IRS Form 8823 is
used to:
for the current year - ANSWER-A tax credit disallowance prevents credits from being
claimed by the owner:
Owners receive a second allocation of tax credits for an existing LIHTC property -
ANSWER-LIHTC resyndication means that:
Determination of income under section 8 of the US Housing Act of 1937
(IRS Notice 88-80, Course Manual pg. 447) - ANSWER-For LIHTC, an individual's
income is determined in a manner consistent with:
Employment Income
(Figure 5-2, Page 5-8, Course Manual pg. 86) - ANSWER-Income for Foster Children
under the age of 18 is counted except for:
All financial assistance in excess of tuition and mandatory fees is included in annual
income, with two exceptions
(Paragraph 5-6E, page 5-11, Course Manual pg. 89) - ANSWER-When section 8
assistance is provided for LIHTC tenant and they are receiving educational scholarships
or grants, then:
26
