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Free HCCP Practice Questions

10 free, exam-style Housing Credit Certified Professional (HCCP) practice questions with answers and explanations. No signup required. Work through them below, then take the full free HCCP practice test to study every exam domain.

Question 1

A married couple, both full-time students with no children, applies for a low-income unit. Their separate filing status means they are not entitled to file a joint return. With no other exception met, the household is:

  1. Ineligible; the marriage exception needs entitlement to file jointly
  2. Eligible, because being married fully exempts them from the student rule
  3. Eligible, as long as their combined annual household income is below the limit
  4. Eligible, since two students may be treated as separate one-person households
Show answer & explanation

Correct answer: A - Ineligible; the marriage exception needs entitlement to file jointly

Question 2

At a mixed-income property, a household's income at recertification rises above 140% of the applicable limit. To keep the over-income unit counted as low-income, the owner must:

  1. Immediately raise the household's gross rent up to the prevailing market rate
  2. Redesignate the over-income unit at the 80% AMI tier going forward
  3. Rent the next available comparable or smaller unit to a qualified household
  4. File Form 8611 with the IRS to report the household's income change
Show answer & explanation

Correct answer: C - Rent the next available comparable or smaller unit to a qualified household

Question 3

A household owns assets with a total cash value of $40,000 that produce $20 in actual income for the year. Using the current HUD imputed (passbook) rate of 0.06%, the asset income counted is:

  1. $24, the imputed amount
  2. $240, calculated on the full asset value
  3. $44, the actual and imputed amounts combined
  4. $20, the actual income
Show answer & explanation

Correct answer: A - $24, the imputed amount

Question 4

A 10-unit income-averaging project designates five units at 80% AMI and five units at 50% AMI. Does the project satisfy the average-income requirement?

  1. No; the units average 65%, above the 60% ceiling
  2. Yes, because no individual unit is designated above 80% AMI
  3. Yes, because the unit designations average exactly to 60%
  4. Yes, because at least 40% of the units are low-income
Show answer & explanation

Correct answer: A - No; the units average 65%, above the 60% ceiling

Question 5

A tenant who uses a wheelchair asks to install grab bars in the bathroom of their unit at a privately financed LIHTC property. This request is best characterized as a:

  1. Prohibited alteration the owner is entitled to refuse outright
  2. Reasonable modification, generally at the tenant's own expense
  3. Reasonable accommodation the owner is required to pay for
  4. Lease violation that would permit the owner to begin termination
Show answer & explanation

Correct answer: B - Reasonable modification, generally at the tenant's own expense

Question 6

A LIHTC development also receives HOME funds, which are federal financial assistance. Under Section 504, what is the minimum share of units that must be accessible?

  1. No accessible units are required, since LIHTC alone never triggers Section 504
  2. At least 5% mobility-accessible and at least 2% sensory-accessible
  3. At least 10% must be mobility-accessible, with no separate sensory requirement
  4. One accessible unit per building is sufficient regardless of the building size
Show answer & explanation

Correct answer: B - At least 5% mobility-accessible and at least 2% sensory-accessible

Question 7

When a state allocating agency identifies noncompliance or a building disposition at a tax credit property, it reports this to the IRS on:

  1. Form 8586
  2. Form 8823
  3. Form 8609
  4. Form 8611
Show answer & explanation

Correct answer: B - Form 8823

Question 8

A building is 100% low-income. After initial move-in certification, which ongoing requirement may the owner stop performing?

  1. Verifying that each unit's rent stays within the limit
  2. Confirming household composition changes
  3. Checking that no unit becomes an all-full-time-student household
  4. The annual income recertification
Show answer & explanation

Correct answer: D - The annual income recertification

Question 9

A project has $12,000,000 in eligible basis, an applicable fraction of 0.75, and a 9% applicable percentage. What is the annual credit?

  1. $900,000
  2. $675,000
  3. $9,000,000
  4. $810,000
Show answer & explanation

Correct answer: D - $810,000

Question 10

If a reduction in qualified basis triggers recapture during the compliance period, the amount recaptured is:

  1. The entire credit claimed to date
  2. Only the first year's credit
  3. The accelerated portion of credits, plus interest
  4. Nothing, because recapture applies only after year 15
Show answer & explanation

Correct answer: C - The accelerated portion of credits, plus interest

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