Bill to Increase LIHTCs for Property Adjacent to QCTs goes to Finance Committee

Monday, October 22, 2001 - 1:45am

Senate Bill 1554, authored by Max Cleland (D-Ga.) and sent last week to the Senate Finance Committee, would amend the Internal Revenue Code to provide an increased low-income housing credit for property located immediately adjacent to Qualified Census Tracts (QCTs). Speaking to participants at Novogradac & Company LLP’s 8th Annual Affordable Housing Conference last week in San Francisco, managing partner Michael J. Novogradac announced that the new QCTs and Difficult to Develop Areas (DDAs) had been released recently with 30 percent new bonus areas added for LIHC properties. QCTs usually change once every 10 years, but this year was an exception, said Novogradac, noting a change that now defines a QCT as a census tract in which 50 percent of the households have incomes below 60 percent of area median gross income or a poverty rate of 25 percent or more. Additional QCTs and DDAs will be released next year, said Novogradac.