TAX CREDIT SPECIALIST 2025/2026 QUESTIONS WITH
ANSWERS TAGGED A+
✔✔ Who is responsible for most of the regulatory administration of the low-income
housing tax credit program? - ✔✔State Housing Finance Agencies (SHFA)
✔✔The initial compliance period for LIHTC properties combined with the Extended Use
Period must be for a minimum period of affordability at: - ✔✔30 Years
✔✔The LIHTC regulations require that HUD guidance for properly identifying and
calculating income and assets be followed according to : - ✔✔Hud Handbook 4350.3
REV-1
✔✔Use of HUD's EIV system is: - ✔✔Prohibited for LIHTC income verifications
✔✔LIHTC legislation provisions include - ✔✔HERA, ARRA, VAWA
✔✔The first 3 stages in the life of a LIHTC property generally occur whithin: - ✔✔3
Years
✔✔A reservation letter received at the end of the application stage for LIHTC means
that - ✔✔A portion of that years tax credits will be held in reserve for a project
✔✔Carryover Allocations are issued by State Housing Federal Agency (SHFA) for
LIHTC projects when: - ✔✔Their 10% tests have been met
✔✔Acquisition/rehab projects generally place in service at acquisition and are given -
✔✔120 days before acquisition
120 days after acquisition
240 days surrounding the acquisition
✔✔In the project example from Appendix C (Course Manual pg. 525), the equity from
the credit sale means that: - ✔✔The tax credit projects mortgage will be less than that of
the conventional property providing less debt and greater affordability
✔✔When conducting physical inspections for LIHTC, most state agencies use: -
✔✔HUD's Uniform Physical Condition Standards (UPCS)
✔✔The two most important line items for management purposes under Part ll of IRS
form 8609 are: - ✔✔8B and 10C
✔✔IRS form 8823 is used to: - ✔✔Report non-compliance to the IRS by the state
agency
, ✔✔A Tax credit disallowance prevents credits from being claimed by the owner - ✔✔For
the current year
✔✔LIHTC resyndication means that: - ✔✔Owners receive a second allocation of tax
credits for an existing LIHTC property
✔✔For LIHTC, an individual's income is determined in a manner consistent with: -
✔✔Determination of income under Section 8 of the US housing act of 1937
IRS Notice 88-80 (Course manual pg. 447)
✔✔Income for foster children under the age of 18 is counted except for: -
✔✔Employment Income
Figure 5-2, Page 5-8 (Course Manual pg. 86)
✔✔When Section 8 assistance is provided for a LIHTC tenant and they are receiving
educational scholarships or grants, then: - ✔✔All financial assistance in excess of
tuition and mandatory fees is included in annual income, with two exceptions:
1. Over age 23 with dependent child
2. Living with parents who are receiving assistance
Paragraph 5-6E, Pg. 5-11 (Course Manual pg. 89)
✔✔Students not receiving section 8 assistance: - ✔✔Don't include student financial
assistance in annual income
Paragraph 5-6E, Pg. 5-11 (Course Manual pg. 89)
✔✔Annualizing Anticipated Annual Full-time employment income - ✔✔Hourly: Wages x
40 hours x 52 weeks
Weekly: Wages x 52
Bi-weekly: Wages x 26
Semi-monthly: Wages x 24
Monthly: Wages x 12
Paragraph 5-5B3 Page 5-6 (Course Manual pg. 84)
✔✔Income verification for LIHTC must be conducted according to: - ✔✔A standard pf
sufficiency as determined by the state housing finance agency
LIHTC Newsletter #54 (Course Manual pg. 473)
ANSWERS TAGGED A+
✔✔ Who is responsible for most of the regulatory administration of the low-income
housing tax credit program? - ✔✔State Housing Finance Agencies (SHFA)
✔✔The initial compliance period for LIHTC properties combined with the Extended Use
Period must be for a minimum period of affordability at: - ✔✔30 Years
✔✔The LIHTC regulations require that HUD guidance for properly identifying and
calculating income and assets be followed according to : - ✔✔Hud Handbook 4350.3
REV-1
✔✔Use of HUD's EIV system is: - ✔✔Prohibited for LIHTC income verifications
✔✔LIHTC legislation provisions include - ✔✔HERA, ARRA, VAWA
✔✔The first 3 stages in the life of a LIHTC property generally occur whithin: - ✔✔3
Years
✔✔A reservation letter received at the end of the application stage for LIHTC means
that - ✔✔A portion of that years tax credits will be held in reserve for a project
✔✔Carryover Allocations are issued by State Housing Federal Agency (SHFA) for
LIHTC projects when: - ✔✔Their 10% tests have been met
✔✔Acquisition/rehab projects generally place in service at acquisition and are given -
✔✔120 days before acquisition
120 days after acquisition
240 days surrounding the acquisition
✔✔In the project example from Appendix C (Course Manual pg. 525), the equity from
the credit sale means that: - ✔✔The tax credit projects mortgage will be less than that of
the conventional property providing less debt and greater affordability
✔✔When conducting physical inspections for LIHTC, most state agencies use: -
✔✔HUD's Uniform Physical Condition Standards (UPCS)
✔✔The two most important line items for management purposes under Part ll of IRS
form 8609 are: - ✔✔8B and 10C
✔✔IRS form 8823 is used to: - ✔✔Report non-compliance to the IRS by the state
agency
, ✔✔A Tax credit disallowance prevents credits from being claimed by the owner - ✔✔For
the current year
✔✔LIHTC resyndication means that: - ✔✔Owners receive a second allocation of tax
credits for an existing LIHTC property
✔✔For LIHTC, an individual's income is determined in a manner consistent with: -
✔✔Determination of income under Section 8 of the US housing act of 1937
IRS Notice 88-80 (Course manual pg. 447)
✔✔Income for foster children under the age of 18 is counted except for: -
✔✔Employment Income
Figure 5-2, Page 5-8 (Course Manual pg. 86)
✔✔When Section 8 assistance is provided for a LIHTC tenant and they are receiving
educational scholarships or grants, then: - ✔✔All financial assistance in excess of
tuition and mandatory fees is included in annual income, with two exceptions:
1. Over age 23 with dependent child
2. Living with parents who are receiving assistance
Paragraph 5-6E, Pg. 5-11 (Course Manual pg. 89)
✔✔Students not receiving section 8 assistance: - ✔✔Don't include student financial
assistance in annual income
Paragraph 5-6E, Pg. 5-11 (Course Manual pg. 89)
✔✔Annualizing Anticipated Annual Full-time employment income - ✔✔Hourly: Wages x
40 hours x 52 weeks
Weekly: Wages x 52
Bi-weekly: Wages x 26
Semi-monthly: Wages x 24
Monthly: Wages x 12
Paragraph 5-5B3 Page 5-6 (Course Manual pg. 84)
✔✔Income verification for LIHTC must be conducted according to: - ✔✔A standard pf
sufficiency as determined by the state housing finance agency
LIHTC Newsletter #54 (Course Manual pg. 473)
