Tax Credit Specialist Complete Practice Exam 2025

To qualify as “affordable housing” under the Low-Income Housing Tax Credit (LIHTC) program, a project typically must ensure that a specified percentage of units are reserved for tenants with incomes below a certain threshold. The correct threshold percentage is 60% of the area median income (AMI).

This guideline is significant because it establishes the maximum income level for which tenants can qualify, thereby ensuring the housing remains affordable for lower-income individuals and families. The LIHTC program aims to facilitate the development and renovation of affordable housing by providing tax credits to investors who finance these projects, making it crucial to adhere to the specified income limits to maintain the intended affordability of the housing units.

While the other options reflect common income limits in different contexts, they do not specifically align with the standard threshold for affordable housing qualification under the LIHTC program. For example, while some programs may use 50% or 80% of AMI for specific purposes, these thresholds are not the benchmark for LIHTC qualification. Thus, identifying 60% of AMI as the correct percentage highlights the program's commitment to ensuring that affordable housing is accessible to low-income households.