Arkansas

Request for state tax credits should be included with federal LIHTC application

• Developments that receive federal credits and are in the low-income counties designated in the State Consolidated Plan will receive State Housing Credits equal to 20 percent of the federal credit total.
• If there is a shortage of state credits, credits will be awarded to developments located within Qualified Census Tracts (QCT), starting with highest scoring under the MFHA’s system.
• If there are not enough eligible developments in QCTs, state credits will be awarded to developments located within counties that have not received credits in the previous three years, starting with highest scoring under the MFHA’s system.
• Remaining credits will be distributed according to the scores of the MFHA system.
• No less than 10 percent of state credits will go to nonprofits.

Brad Elphick

Matt Barker
General Counsel and Vice President for Multifamily Housing
Arkansas Development Finance Authority
[email protected]

California

Request for state tax credits should be included with federal LIHTC application.

Not Available

• State tax credit recipients must first receive federal tax credits, or qualify under Section 42(h)(4)(b) of the Internal Revenue Code. State Farmworker Credits are exempt from this requirement.
• Special Needs developments within a QCT or DDA can request state credits. CTCAC designates all Special Needs housing types as within DDAs.
• All remaining tax credits will be allocated to federal tax credit recipients in exchange for an “equivalent” amount of federal credits at the discretion of the Executive Director.

30 percent of eligible basis for 9 percent credits

13 percent of eligible basis for 4 percent credits

Jim Kroger, CPA

Judith Blackwell
Executive Director, California Tax Credit Allocation Committee

Colorado

2019 Colorado Department of Revenue Private Letter Ruling PLR 19-004 

2018 Colorado Revised Statutes Section 39-22-2102: Credit against tax - affordable housing developments

2018 Colorado Revised Statutes Section 36-22-2101 

2014 Colorado Revised Statutes Section 39-22-2101

2013 Colorado Revised Statutes Section 39-22-2101

LIHTC Application

2017 QAP 

Allocation is based on the following selection criteria:
Primary selection criteria:

1. Low-income targeting
2. Extended low-income use
3. Homeownership options
4. Community revitalization plan
5. Tenant population with special housing needs
6. Subsidized housing waiting list

In addition, for all state credit applications, developments using 4 percent federal credits rather than 9 percent federal credits will be a priority; new construction has priority over acq/rehabs.

SB 18-007 extends Colorado’s Affordable Housing Tax Credit (state AHTC) program through 2024.

Jeff Nishita

Jerilynn Martinez​

Connecticut

Request for state tax credits should be included with federal LIHTC application

9 percent LIHTC: Application rounds are typically held each year in the fall.

4 percent LIHTC: Because 4 percent LIHTC are awarded on a non-competitive basis, developers may apply for 4 percent LIHTC at any time.

Applications are ranked based on the following criteria:

1. Readiness to Proceed
2. Type of Housing Program
3. Target Population
4. Administrative Capability of the applicant
5. Use of Funds in Urban Areas and Impact on Neighborhood Revitalization
6. The extent to which tax credit funds are leveraged by other funds.

Charlie Rhuda, CPA

Masouda Omar
Managing Director of Multifamily
[email protected]

D.C.

Not Available

Not Available

Not Available

Dirk Wallace

Nkosi Bradley
(202) 777-1633

Georgia

Request for state tax credits should be included with federal LIHTC application.

Brad Elphick, CPA

Georgia Department of Community Affairs
(404) 679-4940
Email

Hawaii

S.B. 2833; H.B. 2304 

Contact Hawaii Housing Finance & Development Corporation at (808) 587-0567 for an application package.

Complete and accepted applications shall then be evaluated in accordance with the allocation plan to determine the development’s rank in relation to other developments in the evaluation. Developments receiving the highest ranking shall then be further evaluated to determine the minimum amount of LIHTC required to make the development feasible. The amount of LIHTC reserved or allocated to a particular development will be limited to the minimum amount the HHFDC, in its sole discretion, deems necessary to make the development feasible.

Request for state tax credits should be included with federal LIHTC application.

Application Deadlines:

• TBD for 2017
  Applications accepted throughout the year.

Please contact program staff for the dates. Subject to change.

Allocations before Jan. 1, 2017: 10 years (30 Years)
Allocations after Dec. 31, 2016: 5 years (30 Years)

Jon Adkins

​Darren Ueki
(808) 587-0567

Illinois

Illinois Affordable Housing Tax Credit Checklist 

The first step in applying for IAHTC is to submit a Preliminary Project Assessment (PPA). The PPA addresses development concept, design, location and proposed tenant population. PPAs are either approved or denied by IHDA and are accepted on a rolling basis for IAHTC. Approval of a PPA does not guarantee an allocation of tax credits or any other IHDA resources.

50 percent of the donations

The Illinois Affordable Housing Tax Credit (IAHTC) encourages private investment in affordable housing by providing donors of qualified donations with a one-time tax credit on their Illinois state income tax equal to 50 percent of the value of the donation. The donor can choose to transfer the credits to the development, which creates additional development financing through syndication of the credits.

The credit was extended until Dec. 31, 2021. 

Expanded Donation Form

Stacey Stewart

Indiana (Proposed)

Maine

• At least 30 percent of credit to be allocated to the construction of adaptive reuse of buildings for new rental units of senior housing; and
• At least 20 percent of the credits to be allocated to the construction or adaptive reuse of buildings for new rental units of multifamily affordable rental housing in rural areas.

• Either the construction of one or more new buildings or the adaptive reuse of one or more previously constructed buildings that haven’t been previously used for residential purposes.
• Subject to a restrictive covenant requiring an income mix in which at least 60 percent of the units are restricted to households with income at or below 50 percent area median income.
• Eligible for the 30 percent present-value credit as described in Section 42(h)(4)(B) of the Internal Revenue Code.

Credit also can be equal to 50 percent of the qualified basis of an affordable housing project that incurs not less than $100,000 includible in eligible basis in the construction or rehabilitation of an affordable housing project for which a federal LIHTC is not claimed for those expenditures. No more than $500,000 in credit may be allocated for a single project under this project and no more than 20 percent of the credits an any calendar year may be allocated to these properties.

All properties receiving the credit must remain credit-qualified affordable housing project for 45 years from the date it is placed in service.

Entire credit must be taken in the later of the first taxable year in which the federal LIHTC is claimed or the first taxable year for which the project has an allocation of the state LIHTC.

Maryland (Proposed)

Massachusetts

Request for state tax credits should be included with federal LIHTC application.

Not Available

The selection process for state credit developments fundamentally will be the same as the selection process for federal 9 percent credit developments. However, DHCD reserves the right to establish certain limits for the state credit that differ from limits for federal credit. The sponsors of developments may request an allocation of state credit in combination with federal credit. However, it is important to note that state credit typically will be allocated in lieu of a portion of federal credit, which the development might otherwise receive.

DHCD has authority to allocate up to $20 million each year in state housing credit through 2019, at which point the Department’s annual housing credit authority will revert to $10 million.

While the Department may entertain some exceptions, sponsors should make every effort to limit their state credit requests as follows:

• $ 400,000 for developments with 40 or fewer units
• $ 700,000 for developments with 41 to 60 units
• $1,000,000 for developments greater than 60 units

The amount of credit is allocated at the discretion of the Department of Housing and Economic Development.

Sponsors of developments seeking state credit must meet one of the priority categories described in Section I of this QAP.

• The need to better manage development costs;
• The need to produce more units for extremely low-income (ELI) and homeless families and individuals;
• The need to produce more mixed-income housing, with units available to a broad range of households;
• The need to produce more housing opportunities for persons with disabilities;
• The need to continue promoting thoughtful and strategic efforts to affirmatively further fair housing in every community in the Commonwealth.

Charles Rhuda

Michelle O’Meara
(617) 573-1319

Missouri

Revised Statutes of Missouri Chapter 135 (as of Aug. 28, 2016)

Revised Statutes of Missouri Chapter 135

2017 Application 
 

Request for state tax credits should be included with federal LIHTC application

The application deadline for 2017 Round 1 was Sep. 6, 2016.

The application deadline for 2017 Round 2, consisting of $3 million of 4 percent credits only, was Jan. 16, 2017.

The credit is allocated based on the following:

1. Geographic region
2. Development characteristics
3. Market Characteristics
4. Development Team Characteristics
5. Feasibility
6. Community Impact

The aggregate amount of tax credits issued in a calendar year 34 under sections 135.350 to 135.363 shall not exceed fifty percent of the 35 amount of federal low-income housing tax credits allocated to the state 36 under 26 U.S.C. Section 42, as amended

100 percent of the federal allocation

Bond developments are subject to a $700,000 cap in annual State LIHTCs

Mike Kressig

Jennifer Schmidt
(816) 759-6654
[email protected]

Nebraska

A development must be placed in service after Jan. 1, 2018, to qualify for the state LIHTC.

Nebraska affordable housing tax credits may only be claimed for taxable years beginning on or after Jan.1, 2019.

The Nebraska Investment Finance Authority recently announced that it will delay the process and publication of proposed rules for its state LIHTC. 

Total state LIHTC allocations are limited to the amount of the federal LIHTC available; Federal LIHTC in Nebraska were approximately $4.3 million in 2016

The maximum amount of Nebraska affordable housing tax credits awarded to all qualified developments in any given allocation year shall be no more than 100 percent of the total amount of federal low-income housing tax credits awarded by the authority in the same allocation year.

Effective in 2018 (Specific date TBD)

Nebraska Investment Housing Authority (NIFA), which administers the credit, released a memorandum  recommending to not introduce the legislation in 2017 with respect to the state credit.

Rebecca Arthur

Sara Tichota
LIHTC Allocation Manager
[email protected]

Nevada

S.B. 448

Submit an application on a form prescribed by the Division. There are 2 methods of obtaining a Tax Credit allocation under a QAP: 1) through the competitive application process; and 2) tax-exempt bond financing

The Division shall: (a) Review each application for a certificate of eligibility for transferable tax credits submitted pursuant to subsection 2 and any supporting documents (b) Determine the amount of transferable tax credits for which the project may be eligible (c) Reserve the amount of transferable tax credits for which each project is determined to be eligible pursuant to paragraph

$10 Million 

9 Percent

Mike Morrison

Mark Licea LIHTC Administration Officer
Phone: (702) 486-5980
Email: [email protected]

New Mexico

House Taxation And Revenue Committee Substitute For House Bills 410, 582, 844 and 1086

To receive a tax credit voucher, applicants must make a donation of land, buildings, materials, cash (and cash equivalents) or services, which may be used to acquire land, building acquisition, construction, remodeling, improvement, rehabilitation, conversion or weatherization throughout the state.

Applications are scored based on the following selection criteria:

1. Leverage of other public and private funds
2. Need and market for the proposed Affordable Housing property or activity
3. Readiness to proceed
4. Strength and experience of the sponsor, development team and management entity.
5. Properties which will produce affordable homeownership units.
6. Properties serving the lowest income households appropriate for the type of affordable housing property or activity

The credit is worth up to 50 percent of the value of donations for affordable housing developments approved by the New Mexico Mortgage Finance Authority (MFA).

MFA awards New Mexico Affordable Housing Tax Credit reservations on a first-come first-serve basis. 

New Mexico Affordable Housing Tax Credit Program Notice of Funding Availability; Rental Design Standards; Rental Multifamily State Tax Check List; Tax Credit Transfer; Fiscal Impact; Tax Credit Voucher; Schedules; Donor List

Jeff Nishita

Patty Balderamma
Program Coordinator, New Mexico Mortgage Finance Authority
Email
505.767.2231

New York

Apply online via the Community Development Online System for federal and state credits.

Complete applications must be submitted at least 60 days prior to the proposed construction start date on a form approved by DHCR and will be accepted and processed throughout the calendar year.

The SLIHC Credit allocation is not calendar year-specific.

Applications are scored based on the following selection criteria:

1. Community impact and revitalization
2. Financial leveraging
3. Sponsor characteristics
4. Green building
5. Income mixture
6. Fully accessible and adapted, move-in ready
7. Proposal readiness
8. Persons with special needs
9. Marketing plan/public assistance
10. Individuals with children
11. Non-profit participation
12. Historic nature of property
13. Cost effectiveness
14. Housing opportunity properties
15. Minority- and women-owned business enterprise participation

SLIHC assisted units must serve households whose incomes are at or below 90 percent of the area median income (vs. the 60 percent standard of the federal program).

Capital Programs Manual; Section 2040.14 New York State Low-Income Housing Tax Credit Program; Boilerplate Regulatory Agreement

Charlie Rhuda, CPA

Arnon Adler
New York State Division of Housing and Community Renewal
(518) 486-5044

Oklahoma

NA

Request for state tax credits should be included with federal LIHTC application

The following selection criteria are used to rank applications:

1. Income targeting
2. Term of affordability
3. Development location and housing characteristics 
4. Tenant/targeted populations
5. Tenant ownership
6. Preservation of 15-year old affordable housing
7. Energy efficiency
8. Historic nature
9. Negative points
10. Tie-breaker procedure

The Oklahoma Affordable Housing Act shall undergo a review every five years by a committee of nine persons, to be appointed by various state officials.

Nick Hoehn, CPA

Danette Carr
Oklahoma Housing Finance Agency
405.419.8136

Pennsylvania

South Carolina

(B)(1) A state tax credit pursuant to this section may be claimed against income taxes imposed by Section 12-6-510 or 12-6-530, bank taxes imposed pursuant to Chapter 11, Title 12, corporate license fees imposed pursuant to Chapter 20, Title 12, and insurance premium and retaliatory taxes imposed pursuant to Chapter 7, Title 38, to be termed the South Carolina housing tax credit, and is allowed with respect to each qualified project placed in service after Jan. 1, 2020, and before Dec. 31, 2030, in an amount equal to the federal housing tax credit allowed with respect to such qualified project. In computing a tax payable by a taxpayer pursuant to Section 38-7-90, the credit allowed pursuant to this section must be treated as a premium tax paid pursuant to Section 38-7-20.

From Section (2)(a) of H. 3998:

If under Section 42 of the Internal Revenue Code of 1986, as amended, a portion of any federal housing tax credit taken on a project is required to be recaptured, the taxpayer claiming any state tax credit with respect to such project is also required to recapture a portion of any state tax credit authorized by this section. The state recapture amount is equal to the proportion of the state tax credit claimed by the taxpayer that equals the proportion the federal recapture amount bears to the original federal housing tax credit amount subject to recapture.

Mark Shelburne

Chris McMillan
Multifamily Finance and Bonds Manager
803.896.9196 

Utah

From the 2020 QAP

1. Projects that wish to use State Credit to reduce rents are required to first complete their Application without reliance on State Credits. Applicants will then complete the State Credit section to reduce rents. In effort to encourage the creation of units at or below 30% of area median income, UHC will award an additional amount of State Credits to those projects which reduce rents on up to ten (10) units to 30% area median income or below. The additional amount of State Credit will be up to 20% more than the amount of credit necessary to achieve the rent reduction on a one-to-one basis of debt reduction.

Example: The application spreadsheet determines that a project requires $100,000 of State Credits in order to achieve rent reductions on ten (10) units. Ten (10) of these units will be reduced to 30% of area median income (not including the five (5) homeless units for which points were awarded). UHC will calculate the amount of credit necessary to reduce rents on those ten (10) to 30% of area median income. The project will be eligible for an award of State Credit in that amount, plus a boost of 20%, in addition to the State Credit required to reduce rents in other rent tiers.

2. Projects that will be financed with tax-exempt bond and 4% (non-competitive) Housing Credits may request State Credits in a credit equivalent amount of up to $500,000 for gap funding. The Applicant must commit a match of deferred developer fee.

3. In the event the set-aside of State Credits has been exhausted, UHC may, at its sole discretion, allocate State Credits over the State Credits set-aside to Application requests.

4. State Credits subsequently requested to fund financing shortfalls must demonstrate a dollar–for– dollar leveraging (including Developer fees) of the proceeds of State Credits with additional financial resources with finance terms at or below the applicable federal rates (AFR) published by the IRS.

5. The Applicant must demonstrate that other local, state, federal or private resources (including deferral of fees or Equity contributions by the Developer) have been approached and report the results of such efforts when applying for State Credits.

6. State Credits are not to be used to fund increases in Developer or any Related Party fees.

• Application Fee due with application
• Reservations Notification comes Approx. 90 days from Application deadline

State Credit Pool I: UHC has set aside about 37 percent of its annual state credits ceiling amount for allocation to projects that combine federal and state credits. State Credit Pool II: UHC has set aside about 63 percent of its annual state credits ceiling amount for allocation to permanent supportive housing (PSH) projects only. No project may receive an allocation of more than 25 percent of the State Credit Pool II.

Proposals are scored on the following criteria:

1. Lower income targeting
2. Property location
3. Property characteristics
4. Applicant characteristics
5. Tenant populations with special housing needs
6. Service to tenants with public housing assistance weight
7. Housing needs characteristics
8. Cost and credit efficiency
9. Tie Breakers

The tax credit shall be in an amount equal to the greater of the amount of:

the federal low-income housing tax credit to which the taxpayer is allowed during that year multiplied by the percentage specified in an allocation certificate issued by the Utah Housing Corporation; or

the tax credit specified in the special low-income housing tax credit certificate that the housing sponsor issues to the taxpayer as provided in Subsection (2)(c).

*Utah low-income housing tax credits can only be used to offset Utah state income tax liabilities

2020 Final QAP

*Utah low-income housing tax credits can only be used to offset Utah state income tax liabilities

Mike Morrison

Robyn Cordova
Multifamily Credit Analyst
801.902.8246

Vermont

Common Application Form

Request for state tax credits should be included with federal LIHTC application. Prior to submitting an application, the developer must meet with Vermont Housing Finance Agency staff, obtain site control and meet with other funding agencies.  

The state will allocate credits according to the following allocation criteria:

Top Tier:

1. Rehabilitation
2. Family housing
3. Designated downtown, village center or neighborhood development area
4. Removal of blight
5. Special needs housing

Second Tier:

1. Mixed income housing
2. Unique design
3. Universal design features
4. Housing affordable to households earning less than or equal to 30 percent of gross area median income
5. Properties serving households on public housing waiting lists
6. Properties intended for eventual tenant ownership
7. Properties built in a Dense Infill Site
8. Properties served by public transportation

Other Priorities

1. Properties targeting lowest income tenants
2. Properties serving qualified tenants for the longest period
3. Acquisition and rehabilitation of existing properties that are federally subsidized and at-risk
4. Geographic targeting for underserved areas
5. LEED H, Green Communities or National Green Building standards             

A taxpayer who makes an eligible cash contribution shall be entitled to claim against the taxpayer’s individual income, corporate income, franchise tax or insurance premium tax a credit in an amount specified on the taxpayer’s credit certificate.

A taxpayer claiming affordable housing tax credits shall submit with each return on which such credit is claimed a copy of the allocating agency’s credit allocation to the affordable housing development and the taxpayer’s credit certificate. 

5 years Compliance Period (same as federal)

2020 Draft QAP; Fact Sheet

Charlie Rhuda

Seth Leonard
Managing Director of Community Development
[email protected]

Virginia (Proposed)

Wisconsin

Not Available

2020 State HTC Application Submissions Due– HTC Online Application (LOLA) & State HTC LOLA Attachment & Paper Application Documentation Jan. 3, 2020- Jan. 17, 2020

From the 2019-2020 Wisconsin QAP:

Unlike the 9% tax credit program, there will be no credit set-asides within the $7 million of state HTCs available in 2019 and 2020. The items described below create a competitive application process for 4% federal and state HTCs. Those applications meeting threshold requirements will then receive an application score. WHEDA will allocate Wisconsin 2019-2020 Qualified Allocation Plan Page 19 state HTCs to the highest-scoring applications until a total of $7 million of awards have been made. WHEDA does not intend to make partial awards of state HTCs during this application round.

From the 2019-2020 Wisconsin QAP:

No application may include a request for more than $1,400,000 of state HTCs (20% of the $7 million of state Housing Tax Credits to be allocated annually). Additionally, no member of the development team – applicant and/or co-applicant – may receive more than two awards of state HTCs in any year. There is no limit on the amount of federal 4% tax credits that may be requested. WHEDA intends to award state HTCs that are less than or equal to the federal HTC amount for each application.

From the 2019-2020 Wisconsin QAP:

The Wisconsin Housing Tax Credit was designed to be complement to the federal 4% Housing Tax Credit (HTC), and follows the vast majority of rules that are currently in place for the federal tax credit program. However, there are some key differences between the state and federal programs: • The Wisconsin HTC will have a six-year credit period, versus the 10- year federal credit period • The Wisconsin HTC includes a preference for properties located in a city, town or village with a population of 150,000 or less • If a development consists of more than one building – for the state HTC, the development is placed in service in the taxable year in which the last building of the qualified development is placed in service. For the federal HTC – each building is assigned a specific placed-in-service date. • The HTC ceiling will be limited to $7 million per yearWHEDA is required to give preference to developments located in municipalities with populations less than 150,000 people.

Gov. Walker Signs State Tax Credit Legislation into Law, Wisconsin 2019-2020 QAP

Blair Kincer

Nathan Simms 
Director-Commercial Lending
[email protected]