LIHTC TEST QUESTIONS AND ANSWERS - Basic Facts.
Tax Credits (Intro) Answer - When owners receive a *reduction* in tax liability
Tax Credits go towards (three things) Answer - 1. New buildings/construction
2. Rehabilitation
3. Acquisition (if also Rehabilitating)
To Retain Tax Credits Answer - 1. FILES - Rent to Qualified People
2. RENTS - Keep Rents Low (affordable)
3. UNITS - Maintain the Property
Four Players in Tax Credits Answer - 1. General Partner
2. Limited Partner/Syndicators
3. The IRS
4. The State
General Partner Answer - Assumes Liability and is usually the "Developer"
Limited Partner/Syndicator Answer - Gives the money and owns most of the property
The IRS Answer - Oversees the program
The State Answer - Allocates credits and moniters for compliance
Details about your Property (6 things) Answer - 1. BIN
2. Income Limits
3. Maximum Allowable Gross Rent
4. UA Updates
5. Minimum Set Asides
6. Other Set Asides
BIN Answer - Can be found on 8609 form - includes State postal code, year bldg was allocated tc's - 5 state specific numbers
Income Limits (4) Answer - 1. Yearly assigned by HUD for each county
2. freezes by PIS date
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