Allocating Agencies Adopt Different Approaches in Implementing Tax Credit Provisions of Housing Law

摘要

State allocating agencies are adopting different approaches in amending their low-income housing tax credit qualified allocation plans (QAPs) and program rules to implement provisions in the new housing law (H.R. 3221). For example, agencies are planning various uses for the 10 percent increases in the 2008-2009 tax credit volume caps. The Iowa Finance Authority (IFA) issued a draft 2009 QAP that would create a new disaster relief set-aside for projects in counties designated for disaster assistance. Disaster relief projects also would be allowed to exceed per developer credit and unit cost caps that apply to other developments. The Kentucky Housing Corporation (KHC) and the Washington State Housing Finance Commission (WSHFC) are using some of their additional volume cap to provide relief for projects that have equity shortfalls because of declining tax credit prices or that have experienced increased construction costs. KHC is planning to provide $400,000 for additional credits for 2007 and 2008 projects, and WSHFC is using up to 60 percent of its extra volume cap for projects with equity shortfalls.