Tax Credit Specialist Questions With
Correct Answers
Internal bRevenue bService b(IRS) b- bcorrect banswers✔✔Who bis bresponsible bfor bmost
bof bthe bregulatory badministration bof bthe bLow-Income bHousing bTax bCredit
bPrograms?
30 byears b- bcorrect banswers✔✔The binitial bCompliance bPeriod bfor bLIHTC bproperties
bcombined bwith bthe bExtended bUse bPeriod bmust bbe bfor ba bminimum bperiod bof
baffordability bat:
HUD bHandbook b4350.3 bREV-1 b- bcorrect banswers✔✔The bLIHTC bregulations
brequired bthat bHUD bguidance bfor bproperly bidentifying band bcalculating bincome band
bassets bbe bfollowed baccording bto:
Required bfor bLIHTC bincome bverifications b- bcorrect banswers✔✔Use bof bHUD's
bEnterprise bIncome bVerification b(EIV) bsystem bis:
HERA
ARRA
VAWA b- bcorrect banswers✔✔The bFollowing blegislation bincludes bprovisions bfor
bLIHTC:
Three byears b- bcorrect banswers✔✔The bfirst bthree bstages bin bthe blife bof ba bLIHTC
bproperty bgenerally boccurs bwithin:
A bportion bof bthat byear's btax bcredits bwill bbe bheld bin breserve bfor ba bproject b- bcorrect
banswers✔✔A breservation bLetter breceived bat bthe bend bof bthe bApplication bStage bfor
bLIHTC bmeans bthat:
Their b10% btests bhave bbeen bmet b- bcorrect banswers✔✔Carryover bAllocations bare
bissued bby bSHFAs bfor bLIHTC bprojects bwhen:
-120 bdays bbefore bacquisition bto bqualify bexisting btenants band bclaim bcredits bfrom
bacquisition.
-120 bdays bafter bacquisition bto bqualify bexisting btenants band bclaim bcredits bfrom
bacquisition.
, -240 bdays bsurrounding bthe bacquisition bdate bto bqualify bexisting btenants band bclaim
bcredits bfrom bacquisition. b- bcorrect banswers✔✔Acquisition/Rehab bprojects bgenerally
bplace bin bservice bat bacquisition band bare bgiven:
The btax bcredit bproject's bmortgage bwill bbe bless bthan bthat bof bthe bconventional
bproperty, bproviding bless bdebt band bgreater baffordability. b- bcorrect banswers✔✔In bthe
bproject bexample bfrom bappendix bC b(course bmanual bpg. b525), bthe bequity bfrom bthe
bcredit bsale bmeans bthat:
HUD's bUniform bPhysical bCondition bStandards b(UPCS) b- bcorrect banswers✔✔When
bconducting bphysical binspections bfor bLIHTC, bmost bstate bagencies buse:
8B band b10C b- bcorrect banswers✔✔The btwo bmost bimportant bline bitems bfor
bmanagement bpurposes bunder bPart bII bof bIRS bForm b8609 bare:
Report bnon-compliance bto bthe bIRS bby bthe bState bAgency b- bcorrect banswers✔✔IRS
bForm b8823 bis bused bto:
for bthe bcurrent byear b- bcorrect banswers✔✔A btax bcredit bdisallowance bprevents
bcredits bfrom bbeing bclaimed bby bthe bowner:
Owners breceive ba bsecond ballocation bof btax bcredits bfor ban bexisting bLIHTC bproperty
b- bcorrect banswers✔✔LIHTC bresyndication bmeans bthat:
Determination bof bincome bunder bsection b8 bof bthe bUS bHousing bAct bof b1937
(IRS bNotice b88-80, bCourse bManual bpg. b447) b- bcorrect banswers✔✔For bLIHTC, ban
bindividual's bincome bis bdetermined bin ba bmanner bconsistent bwith:
Employment bIncome
(Figure b5-2, bPage b5-8, bCourse bManual bpg. b86) b- bcorrect banswers✔✔Income bfor
bFoster bChildren bunder bthe bage bof b18 bis bcounted bexcept bfor:
All bfinancial bassistance bin bexcess bof btuition band bmandatory bfees bis bincluded bin
bannual bincome, bwith btwo bexceptions
(Paragraph b5-6E, bpage b5-11, bCourse bManual bpg. b89) b- bcorrect banswers✔✔When
bsection b8 bassistance bis bprovided bfor bLIHTC btenant band bthey bare breceiving
beducational bscholarships bor bgrants, bthen:
26
(Paragraph b5-5B3, bpage b5-6, bCourse bManual bpg. b84) b- bcorrect banswers✔✔Bi-
Weekly bwages bshould bbe bconverted bto bannual bincome bby bmultiplying bby:
A bstandard bof bsufficiency bas bdetermined bby bthe bState bHousing bFinance bAgency
(LIHC bNewsletter b#54, bCourse bManual bpg. b473) b- bcorrect banswers✔✔Income
bverification bfor bLIHTC bmust bbe bconducted baccording bto:
Correct Answers
Internal bRevenue bService b(IRS) b- bcorrect banswers✔✔Who bis bresponsible bfor bmost
bof bthe bregulatory badministration bof bthe bLow-Income bHousing bTax bCredit
bPrograms?
30 byears b- bcorrect banswers✔✔The binitial bCompliance bPeriod bfor bLIHTC bproperties
bcombined bwith bthe bExtended bUse bPeriod bmust bbe bfor ba bminimum bperiod bof
baffordability bat:
HUD bHandbook b4350.3 bREV-1 b- bcorrect banswers✔✔The bLIHTC bregulations
brequired bthat bHUD bguidance bfor bproperly bidentifying band bcalculating bincome band
bassets bbe bfollowed baccording bto:
Required bfor bLIHTC bincome bverifications b- bcorrect banswers✔✔Use bof bHUD's
bEnterprise bIncome bVerification b(EIV) bsystem bis:
HERA
ARRA
VAWA b- bcorrect banswers✔✔The bFollowing blegislation bincludes bprovisions bfor
bLIHTC:
Three byears b- bcorrect banswers✔✔The bfirst bthree bstages bin bthe blife bof ba bLIHTC
bproperty bgenerally boccurs bwithin:
A bportion bof bthat byear's btax bcredits bwill bbe bheld bin breserve bfor ba bproject b- bcorrect
banswers✔✔A breservation bLetter breceived bat bthe bend bof bthe bApplication bStage bfor
bLIHTC bmeans bthat:
Their b10% btests bhave bbeen bmet b- bcorrect banswers✔✔Carryover bAllocations bare
bissued bby bSHFAs bfor bLIHTC bprojects bwhen:
-120 bdays bbefore bacquisition bto bqualify bexisting btenants band bclaim bcredits bfrom
bacquisition.
-120 bdays bafter bacquisition bto bqualify bexisting btenants band bclaim bcredits bfrom
bacquisition.
, -240 bdays bsurrounding bthe bacquisition bdate bto bqualify bexisting btenants band bclaim
bcredits bfrom bacquisition. b- bcorrect banswers✔✔Acquisition/Rehab bprojects bgenerally
bplace bin bservice bat bacquisition band bare bgiven:
The btax bcredit bproject's bmortgage bwill bbe bless bthan bthat bof bthe bconventional
bproperty, bproviding bless bdebt band bgreater baffordability. b- bcorrect banswers✔✔In bthe
bproject bexample bfrom bappendix bC b(course bmanual bpg. b525), bthe bequity bfrom bthe
bcredit bsale bmeans bthat:
HUD's bUniform bPhysical bCondition bStandards b(UPCS) b- bcorrect banswers✔✔When
bconducting bphysical binspections bfor bLIHTC, bmost bstate bagencies buse:
8B band b10C b- bcorrect banswers✔✔The btwo bmost bimportant bline bitems bfor
bmanagement bpurposes bunder bPart bII bof bIRS bForm b8609 bare:
Report bnon-compliance bto bthe bIRS bby bthe bState bAgency b- bcorrect banswers✔✔IRS
bForm b8823 bis bused bto:
for bthe bcurrent byear b- bcorrect banswers✔✔A btax bcredit bdisallowance bprevents
bcredits bfrom bbeing bclaimed bby bthe bowner:
Owners breceive ba bsecond ballocation bof btax bcredits bfor ban bexisting bLIHTC bproperty
b- bcorrect banswers✔✔LIHTC bresyndication bmeans bthat:
Determination bof bincome bunder bsection b8 bof bthe bUS bHousing bAct bof b1937
(IRS bNotice b88-80, bCourse bManual bpg. b447) b- bcorrect banswers✔✔For bLIHTC, ban
bindividual's bincome bis bdetermined bin ba bmanner bconsistent bwith:
Employment bIncome
(Figure b5-2, bPage b5-8, bCourse bManual bpg. b86) b- bcorrect banswers✔✔Income bfor
bFoster bChildren bunder bthe bage bof b18 bis bcounted bexcept bfor:
All bfinancial bassistance bin bexcess bof btuition band bmandatory bfees bis bincluded bin
bannual bincome, bwith btwo bexceptions
(Paragraph b5-6E, bpage b5-11, bCourse bManual bpg. b89) b- bcorrect banswers✔✔When
bsection b8 bassistance bis bprovided bfor bLIHTC btenant band bthey bare breceiving
beducational bscholarships bor bgrants, bthen:
26
(Paragraph b5-5B3, bpage b5-6, bCourse bManual bpg. b84) b- bcorrect banswers✔✔Bi-
Weekly bwages bshould bbe bconverted bto bannual bincome bby bmultiplying bby:
A bstandard bof bsufficiency bas bdetermined bby bthe bState bHousing bFinance bAgency
(LIHC bNewsletter b#54, bCourse bManual bpg. b473) b- bcorrect banswers✔✔Income
bverification bfor bLIHTC bmust bbe bconducted baccording bto:
