LIHTC - PROPERTY COMPLIANCE
EXAM QUESTIONS WITH VERIFIED
ANSWERS. A+ GRADE 2025/2026.
Section 42 - Big Umbrella
8823 Guide (IRS Publication 5913) - ANS What the state looks to, to apply non-compliance
(8823's)
Private Letter Rulings - ANS Cannot be cited as precedent
Housing and Economic Recovery Act (HERA) - ANS Enacted on July 30, 2008, bill contained
substantial revisions to the current LIHTC program.
-uses capital building icon
Tax Credits - ANS Congress enacted Section 42 of the Internal Revenue Code as part of the
Tax Credit Reform Act of 1986 to encourage the investment of private equity in the
development of affordable rental housing for low-income households.
To retain the credits, a developer must: - ANS 1. Rent to qualified households
2. Keep rents affordable
3. Keep property decent, safe and sanitary
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Tax Credits can be involved in: - ANS -New construction
-Rehab of a currently owned property
-Acquisition of an existing property (only if it's also rehabbed)
General Partner - ANS Developer who formulates the project, applies the tax credits and
receives the allocation.
-do it all
Limited Partner - ANS Non-managing member for an LLC
-brings $ to the deal
Syndicator - ANS Facilitates communication between the general partner and the limited
partner
-match maker
Non-profit Organizations - ANS Must have ownership interest in the low income housing
project, directly or through a partnership, and must materially participate on a regular
continuous and substantial basis in the development and operations of the project throughout
the 15 year compliance period.
IRS - ANS Oversees the entire tax credit program with help from the HUD program.
State Housing Finance Agency (HFA) - ANS Often called state agency or state allocating
agency because they are utilized by the IRS to carry out certain responsibilities which include
-allocation of credits
-monitor compliance
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
EXAM QUESTIONS WITH VERIFIED
ANSWERS. A+ GRADE 2025/2026.
Section 42 - Big Umbrella
8823 Guide (IRS Publication 5913) - ANS What the state looks to, to apply non-compliance
(8823's)
Private Letter Rulings - ANS Cannot be cited as precedent
Housing and Economic Recovery Act (HERA) - ANS Enacted on July 30, 2008, bill contained
substantial revisions to the current LIHTC program.
-uses capital building icon
Tax Credits - ANS Congress enacted Section 42 of the Internal Revenue Code as part of the
Tax Credit Reform Act of 1986 to encourage the investment of private equity in the
development of affordable rental housing for low-income households.
To retain the credits, a developer must: - ANS 1. Rent to qualified households
2. Keep rents affordable
3. Keep property decent, safe and sanitary
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Tax Credits can be involved in: - ANS -New construction
-Rehab of a currently owned property
-Acquisition of an existing property (only if it's also rehabbed)
General Partner - ANS Developer who formulates the project, applies the tax credits and
receives the allocation.
-do it all
Limited Partner - ANS Non-managing member for an LLC
-brings $ to the deal
Syndicator - ANS Facilitates communication between the general partner and the limited
partner
-match maker
Non-profit Organizations - ANS Must have ownership interest in the low income housing
project, directly or through a partnership, and must materially participate on a regular
continuous and substantial basis in the development and operations of the project throughout
the 15 year compliance period.
IRS - ANS Oversees the entire tax credit program with help from the HUD program.
State Housing Finance Agency (HFA) - ANS Often called state agency or state allocating
agency because they are utilized by the IRS to carry out certain responsibilities which include
-allocation of credits
-monitor compliance
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
