Question One

At a mixed income project, building 4 unit B, is a 3 bedroom LIHTC unit that exceeds the 140% income limit at recertification.  There are 4 units available.  To satisfy the available unit rule, which unit should be re-occupied with a qualified household?  

1. Building 4, Unit E, a two-bedroom previously occupied by a LIHTC household.
2. Building 4, Unit C, a three-bedroom previously occupied by a market household.
3. Building 2, Unit A, a two-bedroom previously occupied by a market household.
4. Building 5, Unit B, a one-bedroom previously occupied by a market household.

Answer:  (B) The next available unit rule is triggered when at recertification, a household’s income exceeds the current income limit by 140%.  Since this is a building rule, the next available unit rented must be of equal or smaller size, in the same building, and previously occupied by a market household.

Question Two

True or False.  A Section 8 voucher holder with a letter from the Public Housing Authority stating that the applicant is at or under the applicable income limit is 3^rd party verification.

Answer: True, IRS Reg. says it is ok to accept a letter from Section 8 issuing agencies stating that the household is at or below the applicable income limit however states can differ on PHA as a form of 3^rd party verification.

Question Three

This form is completed by the owner to claim tax credits.

1. 8610
2. 8609
3. 8586
4. 8611

Answer: (C)

Question Four

Joanna is applying at a tax credit community.  She is currently making $10.25 an hour and works at The Candy shop 28-32 hours per week.  She is anticipated to work a 5-hour shift every Saturday for $9.75 an hour as a delivery driver for The Candy Shop.  What is Joanna’s anticipated annual income? 

1. $14,560
2. $17,095
3. $19,591
4. $18,525

Answer:  (C) $19,591.  Remember for verifications that give a range of hours, the LIHTC program tells us to use the highest amount to annualize income.

Question Five

Which of the following will be excluded from annual income for a family? 

1. Unearned income from SS Survivor benefits
2. Childcare paid directly to the care provider on behalf of the household
3. Gift money from a family member to assist with rent
4. Income from the employment of a 19 year old family member.

Answer:  (B) HUD 4350.3 says that childcare paid directly to the care provider on behalf of the household is excluded from being counted as income.

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