HUD DESIGNATES QCTS, DDAS FOR 2010
The U.S. Department of Housing and Urban Development (HUD) today designated difficult development areas (DDAs) and qualified census tracts (QCTs) 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. In accordance with the Gulf Opportunity Zone (GO Zone) Act of 2005, the authorization for GO Zone DDAs expires on December 31, 2010 and consequently, today’s notice represents the last designation of GO Zone DDAs.
HUD also made new QCT designations on the basis of revised metropolitan statistical area (MSA) definitions published by the Office of Management and Budget (OMB). QCTs are designated periodically as new data become available; this is the first designation of new QCTs since September 28, 2006.