(Washington, DC) – The Department of Housing and Community Development (DHCD) released today a revised Qualified Allocation Plan (QAP) for the District’s Low Income Housing Tax Credit Program (LIHTC).
Federal law requires the District to adopt a plan to allocate the LIHTC to projects based on federally mandated requirements and priority needs determined by the District. The District’s QAP is intended to ensure the selection of only those projects that comply with federal law and address, on a priority basis, the housing needs of the District.
These allocation procedures govern the award of the District’s LIHTC and apply to residential rental housing financed in conjunction with: (1) private lenders; (2) taxable bonds; and (3) local and federal loan programs. These procedures automatically renew themselves annually, unless amended or replaced.
The LIHTC program was created to encourage the private sector to invest in the construction and rehabilitation of housing for low- and moderate-income individuals and families. Project owners/investors claim LIHTC on their federal return each year for a period of 10 years. However, projects generally must meet certain requirements for low-income use for 30 years.
The public is asked to comment on the revised QAP through to November 24, 2008. Comments should be sent to Kathryn.Howell@dc.gov.