HUD published in the Federal Register on September 9 its list of the 2022 Difficult Development Areas (DDAs) and Qualified Census Tracts (QCTs) used in the Low-Income Housing Tax Credit (LIHTC) program. LIHTC properties in DDAs or QCTs can receive a 30% basis boost in qualified costs, increasing tax credits and resulting in greater investment equity in a project. HUD designates DDAs and QCTs each year. DDAs are areas with high development costs relative to incomes. QCTs are census tracts with a poverty rate of at least 25% or in which 50% of the households have incomes below 60% of AMI. The new DDAs and QCTs take effect on January 1, 2022.
For LIHTC applications submitted in 2021 for projects located in DDAs or QCTs that subsequently lose their DDA or QCT designations, the designations for the project remain in effect if the tax credits are allocated within 730 days from the date a complete application is filed.
The September 9 Federal Register notice is available at: https://bit.ly/3kYBmPG
The 2022 list of DDAs and QCTs is available at: https://bit.ly/3ttv927
More information about the Low-Income Housing Tax Credit program is available in NLIHC’S 2021 Advocates’ Guide at: https://bit.ly/3l8jT7w