HUD Designates 2016 DDAs, QCTs

Friday, November 20, 2015 - 12:45PM

In Tuesday's Federal Register, the U.S. Department of Housing and Urban Development (HUD) will publish a notice designating difficult development areas (DDAs) and qualified census tracts (QCTs) for 2016 for purposes of the low-income housing tax credit (LIHTC). LIHTC developments in DDAs or QCTs are eligible for as much as 30 percent more LIHTC subsidy. For the first time in 2016, DDAs inside metropolitan statistical areas (MSA) will be divided by ZIP codes, rather than counties. As a result, the newly formed small area difficult development areas (SADDAs) will be substantially smaller and more numerous.

Compared to previous designations, this notice:

  1. Provides a six-month delay in the implementation of 2016 DDAs and QCTs from Jan. 1 to July 1, 2016,
  2. Extends from one to two years the period for which previous QCT and DDA designations are effective,
  3. Describes a strengthening of the data quality standards for 2016 QCTs.

Learn more about comprehensive DDA changes on the Notes from Novogradac blog.

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