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

Indiana's 2018-2019 QAP offers points for cost containment measures based upon tax credits per units and per bedroom.

The amount of RHTCs which may be reserved for an allocation of 9% credits to any project may not exceed $1,200,000. The Authority will not accept requests for a waiver of the credit cap for 9% developments. Rehabilitation or Adaptive Reuse: Developer fees for rehabilitation and adaptive reuse must be the lesser of total per unit amount listed below or $1,200,000 (the maximum for developments with tax-exempt bonds is 15% of eligible basis, but any amount over $2,500,000 must be deferred and paid out of cash flow.).

1. $22,000 per unit for the first 20 units;

2. $17,000 per unit for the next 35 units;

3. $14,500 per unit for the for the next 35 units;

4. $8,000 per unit for any unit above 90.

For 9% credit projects with multiple construction types, each type must follow the limits above. For example, a project with 20 units of new construction and 20 units of adaptive reuse would have a limit of $840,000 ($20,000x20 + 22,000x20). If two or more developments receive an equal total score, the following tie breakers will be used to determine the reservation: Tie Breaker: priority will be given to the development that requests the lowest number of tax credits per unit.

l. Tax Credit Per Unit

Up to 4 points will be awarded for developments that implement cost containment measures. Developments will be divided into three categories and compete against each other based on tax credit per program assisted unit.

i. New construction

ii. Rehabilitation

iii. Adaptive reuse

Points will be awarded based on the following distribution. Projects with more than one construction type will compete in the category that represents the majority of the units or development square footage if units are equal.

Lowest Tax Credit Per Unit

80th Percentile                      4 points

60th Percentile                      3 points

40th Percentile                      2 points

20th Percentile                      1 point

Below 20th Percentile          0 points

Contributed By: 
National Housing Trust

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