Affordable housing professionals who use the 4% low-income housing tax credit to finance and build homes may be familiar with two key tests that are crucial to bond transactions: The 50% test and the 95-5 test. On this week's episode of Tax Credit Tuesday, Michael Novogradac, CPA, and Charlie Rhuda, CPA, unpack four essential pieces of information about each of these two tests. First, they give background on each of the tests before discussing issues of timing and application. Then, the two discuss the consequences of failing the test and then suggest ways to overcome those obstacles.