The Official Website of the Executive Office of Housing and Economic Development (EOHED)

Housing and Economic Development

Low Income Housing Tax Credit (LIHTC)



Tax Credit Assistance Program (TCAP) News and Announcements

First TCAP Awards Announced 
Final TCAP Guidelines Approved by HUD PDF 


Tax Credit Assistance Program (TCAP) Funding Program Application Documents

TCAP Funding Application Word
TCAP Sponsor Certification Word
Jobs Estimate Template Excel 


Tax Credit Exchange News and Announcements


Announcement of the third TC-X Funding Round PDF - Deadline of November 6, 2009

First Tax Credit Exchange Awards Announcement 
Amendment to the TC-X Guidelines dated October 22, 2009 PDF 
Amendment to the TC-X Guidelines dated Sept. 25, 2009 PDF
Tax Credit Exchange Program Guidelines PDF

 

Tax Credit Exchange Program Application Documents


TCX-Application Word 
TCX-Sponser Certification Word 
TCX-job estimate Excel 

 

LIHTC Program Description

 The Low Income Housing Tax Credit is a federally authorized program that assists in the production and preservation of affordable rental housing for low-income families and individuals.  The program supports a broad range of activities including acquisition, new construction, and rehabilitation of existing rental properties consistent with an annual Qualified Allocation Plan.

LIHTC Eligible Applicants

For profit developers and non-profit developers.

LIHTC Eligible Activities and Affordability Requirements

Tax credits  can be used to support the acquisition and/or rehabilitation of existing structures for rental use, including distressed or failed properties, or the new construction of rental projects.  Projects seeking tax credits must have a minimum of 8 tax credit-assisted units. The minimum term of affordability is thirty years.

All units receiving tax credit assistance must have 20% or more households earning no more than 50% of area median income or 40% or more households earning no more than 60% of the area median income. In addition, ten percent of the total units must be reserved for persons or families earning less than 30% of area median income. (Please see the additional program information below for a list of maximum rents and household incomes for your community.)

LIHTC Funding Limits

The maximum tax credit award for a new assisted living project is $500,000. The maximum for any other project is $1,000,000. However, DHCD may elect to award more than $1 million in credit (up to a maximum of $1.3 million in credit) to large scale neighborhood impact projects. Requests for allocations greater than $1 million will be considered on a case-by-base basis if the sponsor is able to demonstrate the potential impact of the project and if DHCD has sufficient credit to make a larger allocation. DHCD expects that a sponsor receiving an award greater than $1 million (up to $1.3 million) will request reduced amounts of subsidy financing from the Department. The maximum eligible basis per unit in tax credit developments is $250,000 per assisted unit for projects within the Boston metro area and $200,000 per assisted unit for projects outside the Boston metro area. DHCD will cap the allowable eligible basis in the preservation set-aside at $175,000 per assisted unit.

LIHTC Selection Criteria  

  • strength of overall concept
  • strength of development team
  • demonstrated need for project in the target neighborhood
  • suitable site and design
  • appropriate scope of rehabilitation or construction
  • appropriate total development cost for properties included in proposal
  • financial viability of the project
  • degree of local support, including local funding commitments
  • evidence of readiness to proceed
  • evidence of satisfactory progress on projects previously funded with DHCD resources
  • incorporation of  sustainable development

LIHTC - How to Apply

DHCD makes Low Income Housing Tax Credit funding available through a Notice of Funding Availability (NOFA), twice yearly.  Applicants must complete and submit the One Stop Housing Application.   

Read:  2009 Tax Credit Qualified Allocation Plan PDF
Complete: One Stop Application
Complete: Market Data Summary Form Excel


LIHTC Guidelines

Massachusetts State Low Income Housing Tax Credit Program Regulations
HUD's 2009 Difficult to Develop Areas PDF 
(In addition to 'HUD's 2009 Difficult to Develop Area' list, DHCD has designated 20 other Difficult to Develop Areas on page 12 of the draft 2009 QAP).
Qualified Census Tracts
Metro Area List PDF
2009 Tax Credit Rents and Income Limits PDF
This year, HUD has published special income limits for certain Counties and certain Low Income Housing Tax Credit (LIHTC) developments. These special limits are referred to as "HERA limits". The above schedule includes these limits where applicable. ONLY those LIHTC developments that were Placed In Service prior to January 1, 2009, are authorized to utilize the HERA limits. A development must also be located in one of the Counties where HERA limits are available. HERA limits are not available to developments that were Placed in Service after December 31, 2008. As such, HERA limits are not available to new applications for LIHTC. 


LIHTC Carryover Forms

Sample 10% Test Word
Owner Certification Form Word
Summary of Changes Form Word
Revised Sources & Uses Form Excel
Release and Indemnification Agreement Word
2009 Carryover Allocation Form  Word (do not fill out this form without permission from DHCD)
Instructions for Carrover Allocation Form Word


LIHTC - 9 % Tax Credit Regulatory Documentation

Tax Credit Regulatory Agreement Instructions Word
Tax Credit Regulatory Agreement Sample Word
Tax Credit Regulatory Agreement Sample with ground lease sample Word
Tax Credit Regulatory Agreement - Perpetuity Word
Tax Credit Regulatory Agreement - Perpetuity - ground lease Word
Tax Credit Regulatory Agreement -Term Word
Tax Credit Regulatory Agreement -Term; ground lease Word
 

LIHTC - 4 % Tax Credit Regulatory Documentation

Tax Credit Regulatory Agreement - Perpetuity 
Tax Credit Regulatory Agreement -Term 


LIHTC - Regulatory Related Documents

Sample Legal Opinion Word
Release and Indemnification Agreement Word
Certification of State Tax Compliance Word
Certification of Project Subsidies Word
Certification of Project Placed in Service Date Word  
Prior Recorded Lienholder Consent Word
Low Income Housing Tax Credit, Cost Certification Format Word   
Schedule of Sources and Applications of Funds PDF
IRS Form 8609 PDF   


LIHTC - Massachusetts State Tax Credit Documents

9% and State Credit Addendum Word   
4% and State Credit Addendum Word   
State Release and Indemnification Word   
State Tax Credit Program Certification Word   
Eligibility Statement Word   


Contact 
For additional information please call the Low Income Housing Tax Credit staff at (617) 573-1300.