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

Indiana's 2018-2019 Qualified Allocation Plan (QAP) offers points for proximity to growth opportunities. 

The 2018-2019 Indiana Qualified Allocation Plan (QAP) seeks to promote place-based initiatives.  While the opportunities and challenges may vary, every community should strive to be a place where people choose to live, work, and play. A thriving community is a community with job opportunities, strong schools, safe neighborhoods, a full range of housing choices, and a vibrant culture. A community's potential lies in the identification and creation of a shared vision, planned by local leadership, and carried out by an array of partners. The demolition of blighted structures, the rehabilitation of long-vacant housing and the creation of new community amenities and retail opportunities serve as a tipping point for future development through market forces.

Off Site Improvement, Amenity and Facility Investment

  • 4 points will be awarded if an investment of resources is provided that will result in off-site infrastructure improvements within a ¼ mile of the project site(s), and/or the development of parks, green space and shared amenities, recreational facilities and improvements within a ¼ mile of the proposed project site(s) that will serve the tenant base for the subject project. The proposed improvements, amenities, and/or facilities must be completed prior to the proposed placed in service date for the project but no more than two years before the application submission date. The development cost and source of funding associated with the development of the improvements, amenities and/or facilities must be mutually exclusive of the development cost and sources of funding for the subject property. If the development cannot move forward without the improvement, the improvement will not qualify.
  • For the purposes of this scoring category, improvements must be outside the footprint of the building and outside the boundary of the development parcel to qualify.
  • For scattered site projects, each site must have improvements within a ¼ mile to qualify. Examples of improvements, amenities, and facility investment of resources include, but are not limited to, the following:
  • i. Reconstruction of existing roads and streetscapes,
  • ii. Reconstruction of vacant or blighted land with new infrastructure that promotes comprehensive revitalization such as new residential blocks and streets,
  • iii. Development of parks, green space or walking trails on a master plan development site,
  • iv. Development of community centers or similar facilities that promote cultural, educational, recreational, or supportive services for a community,
  • v. Construction of sidewalks or streetscape adjacent to the property,
  • vi. Construction of shopping or retail center adjacent to the property.

To qualify for points, the minimum cost for the improvement must meet or exceed the amount listed below based on the “Development Location” set-aside requirements defined in Section E.4 of the QAP: Development Location Set-aside Minimum Cost for the Improvement

Large City $100,000

Small City $50,000

Rural $25,000

Required Documentation:

i. Conditional commitment of funds describing the improvements, including sources and uses and estimated timeline for completion.

ii. Map showing a ¼ mile radius and the location and description of improvements to the site. For scattered site properties, applicant must ensure that IHCDA can determine a ¼ mile radius from each site.

iii. A narrative, which includes how the investment will benefit the tenants.

iv. Any improvements within a public right of way must demonstrate approval from local jurisdiction.

Desirable Sites: Desirable sites, which are or will be, located in close proximity and are accessible to desirable facilities tailored to the needs of the development’s tenants, such as Private Service, Public Service, and/or Health Related Entities will be awarded points. For scattered site projects, points will be calculated by taking the average by unit.

Location efficient projects - 3 Points

Transit oriented development - 2 Points

Opportunity index - 6 Points

Undesirable Sites -1 Point per undesirable feature

Total Points Possible 11 Points

Location Efficient Projects: Promote projects that provide nearby access to healthy food options, community facilities, services, healthcare and retail centers.

Up to 3 points will be awarded to projects that are located within ½ mile walking distance of at least 3 facilities from the list below (from a minimum of 2 categories) or within 1 mile walking distance of 5 facilities from the list below (from a minimum of 2 categories). One of the facilities must be a store with fresh produce, such as a supermarket or grocery store to qualify for the maximum points in this category. Developments without access to fresh produce may receive partial points. Stores with fresh produce must:

  • Be currently established
  • Have a physical location
  • Have regular business hours

For the purposes of this scoring category, farmer’s markets, produce stands, gas stations, convenience stores, and drug stores do not qualify as stores with fresh produce.

Civic or Community Facilities

  • Licensed childcare
  • Community or recreation center
  • Entertainment venue
  • Education facility (including K-12, university, adult education, vocational school or community college)
  • Cultural arts facility (museum, performing arts theater, etc.)
  • Police or Fire Station
  • Public library
  • Public park
  • Post office
  • Government office that serves public onsite
  • Social services center

Services

  • Bank
  • Restaurant, café, diner
  • Laundry or dry cleaner
  • Gym, health club, exercise studio
  • Licensed adult or senior care

Retail

  • Supermarket
  • Other food stores with fresh produce (as defined above)
  • Clothing retail
  • Other retail

Healthcare

  • Pharmacy
  • Doctor’s or nurse practitioner’s office
  • Optometrist
  • Dentist
  • Physical therapy office
  • Clinic
  • Hospital

Transit Oriented Development: Up to 2 points are awarded if a project is located within ½ mile of fixed transit infrastructure.

  • “Fixed transit infrastructure” is defined as light rail station, commuter rail stations, ferry terminals, bus rapid transit stations, streetcar stops, bus stops or major bus transit centers.
  • If the fixed transit infrastructure does not yet exist, the transit investment must be planned, approved and funded at the time of application. Transit investments that have been funded but not completed will be considered. Verification must be provided.
  • Rural and small city sites may qualify for this category if applicants can show documentation of an established point to point transit service that provides pick up service to within a ¼ mile of the site.

Opportunity Index: The proposed Development Site may earn up to 6 points (with 1 point for each feature) for proximity to growth opportunities such as quality education institutions and livable wages. Poverty rates and household income will be based on the most recent data from the US Census (http://www.census.gov/did/www/saipe/index.html). As of the application due date, the Development is located within:

  • A county at the top quartile for median household income in the state and not within a QCT.
  • A county at the bottom quartile for poverty rate in the state and not within a QCT.
  • A county that has an unemployment rate below the State average (http://www.stats.indiana.edu/maptools/laus.asp).
  • A county with a ratio of population to primary care physicians of 2,000:1 or lower (http://www.countyhealthrankings.org/app/indiana/2017/measure/factors/4/data)
  • A development that is within 1 mile of a university, college, trade school, or vocational school.
  • A development that is within 1 mile of one of the 25 largest employers in a county http://www.hoosierdata.in.gov/buslookup/BusLookup.aspx
  • 1 point will be deducted if the proposed site falls within a census tract that is defined as a Racially/Ethnically Concentrated Area of Poverty (“R/ECAP”) by HUD’s Affirmatively Furthering Fair Housing mapping tool at https://egis.hud.gov/affht/#.

-       This 1 point deduction will not apply to developments competing in the Preservation set-aside.

-       This 1 point deduction will not result in negative total points under the opportunity index scoring category. The lowest an application can score under opportunity index is zero.

Undesirable Locations: When mapping the locations of community facilities and services for the above location efficiency points, all undesirable facilities must be included as well. One point may be deducted per undesirable feature present if the proposed development is found to be within ½ mile of facilities that may pose a public or environmental health risk. The following is a non-exhaustive list of facilities for which 1 point may be deducted if in close proximity.

*If the development includes the remediation of these issues (including brownfield or greyfield redevelopment) points will not be deducted. Undesirable Locations/Facilities are defined as any location that produces objectionable noise, smells, excessive traffic, hazardous activity, etc., including but not limited to: junkyards, hazardous chemical factories, hazardous heavy manufacturing factories, power plants or stations, water/sewage treatment facilities, petroleum or other chemical storage, and railroads. The volume of daily train traffic can be determined by visiting the following websites:

  • http://safetydata.fra.dot.gov/officeofsafety/publicsite/crossing/Xingqryloc.aspx
  • http://safetydata.fra.dot.gov/officeofsafety/publicsite/crossing/crossing.aspx

Other undesirable conditions/facilities not on the list above but noted in the market study may also result in negative points. Required Documentation: Completed Form A (Application). A site map indicating the specific locations of each desirable facility/activity, as well as, all undesirable facilities/activities (i.e. junkyards, hazardous, chemical or heavy manufactures, etc.) must also be submitted. The map must contain a key stating the type of facility/activity identified, and must include the following:

i. Location of site including an indication of major access roads;

ii. Indication of distances within a ¼ mile and ½ mile radius indicated on the map;

iii. Areas of residential development adjacent to or near the site;

iv. Indication of any significant industrial or commercial development; and

v. All desirable facilities or activities.

Scattered site developments must submit the required information for each location. Points will be awarded based on the average for each unit.

NOTE: If map, key and photos containing the above requirements are located within the market study, no additional map is required. Please indicate the page number(s) the information can be found within the market study on the Application’s self-score sheet Notes section (Form A – Application).

Contributed By: 
National Housing Trust

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