Low-Income Housing Tax Credits & Cost Containment in Hawaii, 2018-2019

Hawaii Housing Finance and Development Corporation (HHFDC) establishes a number of cost-containment measures in their 2018-2019 Qualified Allocation Plan (QAP), for 9% (volume cap) housing tax credits.

The Hawaii QAP for 2018-19 states that the minimum rehabilitation expenditures must be the greater of the minimum rehabilitation threshold identified in Section 42 ITC or the cost of work identified by the Capital Needs Assessment attributable to address immediate repairs, replacements or upgrades.

  • Up to 5 points will be awarded for projects that provide the most units for the annual LIHTC amounts. The ratio used in this assessment is derived as: “Total Federal Tax LIHTC Requested (Annual)/Total Number of Proposed LIHTC Units.” A ratio of $24,000/LIHTC unit or more will earn zero points. A ratio of $10,000/LIHTC unit or less will earn 5 points.
  • Up to 4 points will be awarded for projects that most effective leverage their LIHTC funding. The ratio used in this assessment is derived as “Total Federal Tax LIHTC requested (annual multiplied by ten years)/Total Project Cost.” A ratio of great than 80% will earn no points while a ration of less than 40% will earn 6 points.
  • Up to 4.5 points will be awarded to projects based upon lowest total development cost (without land) per gross building square foot.
  • Up to 4.5 points will be awarded to projects based upon the lowest total development cost (with land) per unit.
Contributed By: 
National Housing Trust

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