Low Income Housing Tax Credits


=PDF | =HTML | =requires prior authorization

Add me to the Tax-Credit Program Mailing List
Housing Tax Credit files including notices & Memorandums, QAPs and previous funding round info can be found here
  Current Initiatives
2013QAP Tentative 2015 QAP Timeline
2013QAP Memorandum Regarding Onsite Security
2013QAP 2014 FINAL Awards List as of 12/19/2013
2013QAP 2014 LIHTC Waiting List
2013QAP 2014 LIHTC Application Log as of 09/11/2013
2013QAP 2013 HOME Initiative Awards List as of 7/10/13
2013QAP Official Parish Journals Fiscal Year 2013/2014
2013QAP 2014 Tax Credit Application
2013QAP Underwriting, Closing, Audit and Performance Issues - LIHTC
2013QAP Registration 2014 Special Interim QAP Application Workshop
2013QAP RFP Market Analyst 2014 Special Interim QAP as of 6/13/2013
2013QAP Final 2014 Special Interim Qualified Allocation Plan and Selection Criteria as of 6/12/13
2013QAP Memorandum Return-Reallocation Procedures as of 4/10/2013
2013QAP LHC Final Qualified Contract Processing Guidelines Revised
2013QAP LHC Checklist for LIHTC Qualified Contract Processing
draft QAP Enterprise Green Communities Criteria Checklist
draft QAP LEED for Homes Checklist
draft QAP LEED for New Construction Project Checklist v2.1
   

The Housing Tax Credit Program was created by the Tax Reform Act of 1986. Section 42 of the Internal Revenue Code of 1986, as amended (the Code), is the federal law that governs the program. The Housing Tax Credit Program is a tax incentive intended to increase the availability of low income rental housing. The tax credit is a credit against regular tax liability for investments in affordable housing properties constructed, acquired and rehabilitated after 1986.

Applicants should be familiar with Section 42 of the Code, regulations and administrative documents (revenue rulings, revenue notices), and all relevant material published by the IRS. Applicants should also consult with their attorney and accountant in order to comply with all program requirements.

Description of Housing Tax Credits
The Housing Tax Credit is received each year for ten years-the period the taxpayer claims the tax credit on his/her federal income tax return. The owner must maintain the income and rent restrictions continuously for 15 years-this is the compliance period. Additionally, the owner must enter into an extended use period of an additional 15 years by filing a regulatory agreement on the project with the clerk of court in the parish where the property is located.

The amount of tax credits to which a project owner is eligible is based on the amount of qualified development costs incurred and the percentage of low income units within a development that meet the applicable federal requirements for both tenant income and rent. Each qualified tax credit development must include a minimum percentage of units to be set-aside for eligible low income tenants. These set-aside units must also be rent-restricted. The Compliance Division of the Agency monitors the property throughout the compliance and extended use periods to ensure that the property remains affordable to low income families.

Use of Housing Tax Credits
To qualify for tax credits, the proposed development must involve new construction or substantial rehabilitation of existing residential units that is occupied by low income individuals and families. The costs associated with the development of these low income units are the building's eligible basis. However, there are certain project costs not subject to inclusion into eligible basis. The housing credit is not available for any of the following facilities: hospitals, nursing homes, sanitariums, life care facilities, retirement homes (if providing significant services other than housing are mandatory for residents), employer housing, mobile homes and dormitories. Consult a housing credit tax advisor or Section 42 of the Code for more information.

How to Apply for Housing Tax Credits
Prospective applicants apply for housing tax credits by submitting an application to LHC. Applications are received and evaluated under the Qualified Allocation Plan (QAP) at least once a year. LHC's QAP provides information on the calendar year program including minimum project requirements, competitive criteria and underwriting criteria. Data tables are also included with the QAP to provide applicants with the necessary localized data regarding such information as median family income, qualified census tracts and rent limits by parish.

The QAP and all necessary forms and additional supportive documents are available for downloading at the Housing Tax Credit Files page. Applicants should review all program information and application for a thorough understanding of LHC's program.

To learn more about the Low Income Housing Tax Credit program,
contact lihtcwebinfo@lhc.la.gov.

Assistance is available on an equal basis regardless of race, color, familial status, national origin, religion, sex or handicap.