Low Income Housing Tax Credits & Cost Containment in Kentucky, 2019-2020

Kentucky's 2019-2020 Qualified Allocation Plan limits the amount of housing credits per project

All users are restricted to a maximum of $1,500,000 in annual Housing Credit based on their involvement in projects as the applicant/developer, general partner, guarantor, or any other party receiving 25 percent or more of the developer fee as evidenced in the application, developer/consultant certifications and final cost certifications.

The maximum annual Housing Credit allocation for all projects, including Tax-Exempt Bond projects with 4% Housing Credit, cannot exceed the amount as determined by the per-unit limit calculation.

Urban Areas: The Housing Credit allocation for projects located in urban areas will be limited to $12,000 per Housing Credit unit except for projects located in QCTs or DDAs, as designated by the secretary of the U.S. Department of Housing and Urban Development; Choice Neighborhoods; historic/adaptive reuse projects; new construction projects located in areas of opportunity; or projects located in areas defined by KHC as needing an increase in basis, which will be limited to $15,600 per Housing Credit unit.

Rural Areas (Any area outside of the urban areas as defined by RD is considered rural) The Housing Credit allocation for projects located in rural areas will be limited to $13,500 per Housing Credit unit except for projects located in QCTs or DDAs, as designated by the U.S. Department of Housing and Urban Development; historic/adaptive reuse projects; projects located in the Promise Zone counties (Bell, Clay, Harlan, Knox, Leslie, Letcher, Perry and part of Whitley); or projects located in areas defined by KHC as needing an increase in basis, which will be limited to $17,550 per Housing Credit unit.

Rural Area Example: Subsidy limit: $13,500 $17,550 (if in a DDA, QCT, or other KHC-defined area) 40 total units not in any of the bonus areas 40 x $13,500 = $540,000

Contributed By: 
National Housing Trust

Other Items of Interest