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Whether you’re a long-time subscriber or a new one, you can test your knowledge—and that of your staff—on various compliance topics we’ve covered in the past year by taking the quiz in this Special Issue. The questions touch on topics ranging from income calculations and household composition to fair housing. The answers, along with explanations, follow the quiz.

As a tax credit manager, your main goal is to make sure that the owner of your site can claim all the credits allocated to the site. To do this, you must keep your site in compliance with the tax credit law throughout the compliance period. But because the tax credit program’s requirements are so complex, your site may get hit with violations, despite your best management efforts.

Tax credit site managers often find themselves wasting time and money processing applications for ineligible households. You need an easy way to get basic eligibility information right away so that you can focus your administrative efforts on eligible households.

Requiring application deposits for tax credit units is a good way to secure applicants and get signed leases later on, especially when new or substantially rehabilitated buildings aren’t ready. But when you accept a deposit, don’t inadvertently give the applicant the impression that you’re guaranteeing him a unit. Giving the impression that the deposit is a guarantee has led to legal disputes when the applicant’s circumstances changed and he was no longer eligible when the unit was ready.

While the IRS is generally responsible for the low-income housing tax credit program, in 2000 it entered into a Memorandum of Understanding with the Department of Housing and Urban Development (HUD) and the Department of Justice (DOJ) to enforce fair housing laws. HUD is generally charged with enforcing the Fair Housing Act (FHA), and may refer cases to the DOJ. The FHA prohibits discrimination in housing and housing-related transactions, including the sale, rental, and financing of dwellings, based on race, color, religion, sex, national origin, familial status, and disability.

If you manage several tax credit sites or one very large one, you may find it hard to get an accurate day-by-day picture of how things are going at each of them. That’s because information tends to get altered in the course of reaching you. For example, maintenance staffers and leasing agents report to their supervisors, who in turn report to their property managers, who then report to you. At each stage, less and less information gets passed on.

In these economic times, you may have experienced an uptick in qualified applicants applying for units at your tax credit site. Unfortunately, a small subset of these applicants is probably reporting false income in an attempt to take advantage of subsidized rent rates. Recently, the Worcester Housing Authority (WHA) in Massachusetts reported nearly $1.6 million in fraud over the past five years. According to the report, from 2008 to 2012, WHA staff and investigators reviewed 2,000 suspected cases of fraud.

In the November 2012 Special Issue, we covered move-in procedures that make good first impressions on new residents. In this issue, we’ll cover an important step to perform when good residents move out, so you can assess the effectiveness of your management practices.

                Maybe they were perfectly satisfied and moved out for reasons unrelated to your tax credit site—because they were relocating, for example. But maybe the residents were dissatisfied with the way you run your site.

Finding enough qualified applicants to occupy your low-income units can be a tough task. And you’ll want to attract enough qualified applicants to be able to choose those who will respect your rules and pay the rent on time.

If you don’t find enough qualified applicants for your tax credit site, the owner may not be able to claim all the credits it was allocated. Worse, your site might not even qualify for the tax credit program, in which case the owner won’t be entitled to claim any of its tax credits.