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Tax Credit Specialist Questions and
Answers Latest 2026
Who is responsible for most of the regulatory
administration of the low-income housing tax credit
program? Ans: 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: Ans: 30 Years
The LIHTC regulations require that HUD guidance for
properly identifying and calculating income and assets be
followed according to : Ans: Hud Handbook 4350.3 REV-1
Use of HUD's EIV system is: Ans: Prohibited for LIHTC
income verifications
LIHTC legislation provisions include Ans: HERA, ARRA,
VAWA
The first 3 stages in the life of a LIHTC property generally
occur whithin: Ans: 3 Years
A reservation letter received at the end of the application
stage for LIHTC means that Ans: A portion of that years
tax credits will be held in reserve for a project
© 2025 All rights reserved
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Carryover Allocations are issued by State Housing Federal
Agency (SHFA) for LIHTC projects when: Ans: Their 10%
tests have been met
Acquisition/rehab projects generally place in service at
acquisition and are given Ans: 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: Ans:
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: Ans: HUD's Uniform Physical
Condition Standards (UPCS)
The two most important line items for management
purposes under Part ll of IRS form 8609 are: Ans: 8B and
10C
IRS form 8823 is used to: Ans: Report non-compliance to
the IRS by the state agency
A Tax credit disallowance prevents credits from being
claimed by the owner Ans: For the current year
© 2025 All rights reserved
Tax Credit Specialist Questions and
Answers Latest 2026
Who is responsible for most of the regulatory
administration of the low-income housing tax credit
program? Ans: 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: Ans: 30 Years
The LIHTC regulations require that HUD guidance for
properly identifying and calculating income and assets be
followed according to : Ans: Hud Handbook 4350.3 REV-1
Use of HUD's EIV system is: Ans: Prohibited for LIHTC
income verifications
LIHTC legislation provisions include Ans: HERA, ARRA,
VAWA
The first 3 stages in the life of a LIHTC property generally
occur whithin: Ans: 3 Years
A reservation letter received at the end of the application
stage for LIHTC means that Ans: A portion of that years
tax credits will be held in reserve for a project
© 2025 All rights reserved
, 2 | Page
Carryover Allocations are issued by State Housing Federal
Agency (SHFA) for LIHTC projects when: Ans: Their 10%
tests have been met
Acquisition/rehab projects generally place in service at
acquisition and are given Ans: 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: Ans:
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: Ans: HUD's Uniform Physical
Condition Standards (UPCS)
The two most important line items for management
purposes under Part ll of IRS form 8609 are: Ans: 8B and
10C
IRS form 8823 is used to: Ans: Report non-compliance to
the IRS by the state agency
A Tax credit disallowance prevents credits from being
claimed by the owner Ans: For the current year
© 2025 All rights reserved
