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Thursday, September 9, 2010 - 12:30PM

The U.S. Department of Housing and Urban Development (HUD) today designated difficult development areas (DDAs) for 2011 for purposes of the low-income housing tax credit (LIHTC) under Section 42 of the Internal Revenue Code (IRC). HUD makes new DDA designations annually. LIHTC projects in DDAs or QCTs are eligible for as much as 30 percent more LIHTC subsidy than projects not located in DDAs or QCTs. Today’s notice designates DDAs for each of the 50 states, the District of Columbia, Puerto Rico, American Samoa, Guam, the Northern Mariana Islands and the U.S. Virgin Islands. In accordance with the Gulf Opportunity Zone (GO Zone) Act of 2005, GO Zone DDAs expire on December 31, 2010. Thus, today’s notice does not designate GO Zone DDAs. The designations of qualified census tracts (QCTs) under IRC Section 42 published October 6, 2009, remain in effect.

Tune in to the Tax Credit Tuesday podcast on September 14 to hear more about the new 2011 DDAs.

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