Low Income Housing Tax Credits & Preservation in Indiana, 2012-2013

Indiana's 2012-2013 Qualified Allocation Plan set-asides 20% of the state’s competitive 9% Low Income Housing Tax Credit allocation to substantial rehabilitation projects.

Indiana’s 2012-2013 QAP supports and encourages projects that substantially upgrade and preserve existing low income housing and are part of a published community revitalization plan.

The QAP has a 20% set-aside for developments which involve the substantial rehabilitation of an existing structure (affordable, market rate, or otherwise) and/or a development otherwise in danger of being lost as affordable housing and/or the demolition and decentralization of housing units utilizing the same site (50% of the units must be replaced).

This includes developments being removed from the affordable housing stock by a federal agency (i.e. HUD, Rural Development), rental housing Rental Housing Tax Credit Developments with Compliance Periods that have expired or are expiring in the current year; Developments which entail demolition or decentralization of units with replacement of units on the same site; and Re-use of an existing structure(s) for conversion into affordable housing where a minimum of 75% of the Development is converted to affordable housing and/or its common areas. Rehabilitation hard costs must be in excess of $30,000 per unit to be considered in this category ($20,000 for all other set-aside categories).

Indiana also awards up to 8 points for preservation of existing affordable housing including: 8 points for the preservation of an affordable housing development assisted with Rental Housing Tax Credits that have expired or will expire in the current year; up to 8 points for the preservation of a previously HUD funded or USDA funded affordable non-public housing development (such as a Project-Based Section 8 or RD 515 properties), with developments receiving designation of high preservation receiving 8 points, 5 points for medium priority and 3 points for low priority. Projects that propose the preservation of any other affordable housing development will receive 6 points.

Contributed By: 
National Housing Trust

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