QAP - Related Documents
Important LIHTC News and Updates
Tax Credit Assistance Program (TCAP) News and Announcements
Tax Credit Exchange News and Announcements
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
- Conformance with DHCD Funding Priorities
- 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.
Massachusetts State Low Income Housing Tax Credit Program Regulations
HUD's 2012 Difficult to Develop Areas
(In addition to 'HUD's Difficult to Develop Area' list, DHCD has also designated additional Difficult to Develop Areas in the QAP).
Qualified Census Tracts
Metro Area List
2012 Tax Credit Rents and Income Limits
LIHTC - Regulatory Related Documents
Sample Legal Opinion
Certification of State Tax Compliance
Certification of Project Subsidies
Certification of Project Placed in Service Date
Prior Recorded Lienholder Consent
Low Income Housing Tax Credit, Cost Certification Format
Schedule of Sources and Applications of Funds
IRS Form 8609
For additional information please call the Low Income Housing Tax Credit staff at (617) 573-1300.