HUD Announces 2024 DDAs, QCTs
The U.S. Department of Housing and Urban Development (HUD) published a notice in today’s Federal Register designating 2024 difficult development areas (DDAs) and qualified census tracts (QCTs) for purposes of the low-income housing tax credit (LIHTC). LIHTC properties built in a QCT or DDA are eligible to increase their eligible basis by up to 30%. The notice designates DDAs for all states, the District of Columbia and four major U.S. territories (Guam, the Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands). QCTs are based on income and poverty data released in the American Community Survey. The 2023 DDAs and QCTs are effective for LIHTC allocations made after Dec. 31, 2023, or for buildings financed by tax-exempt bonds that are placed in service after Dec. 31, 2023.
Financing for LIHTC properties, including the use of DDAs and QCTs, will be a topic at the Novogradac 2023 Housing Tax Credit and Bonds Conference, Sept. 28-29 in New Orleans.