Low-Income Housing Tax Credits & Rural Housing in Nevada, 2018

The 2018 Nevada Qualified Allocation Plan (QAP) includes a set-aside and incentive for USDA-RD projects and lists criteria for developments to fall under this category. The QAP also explains how Nevada geographically allocates its tax credits.

Demand for housing credits often exceeds supply. In determining how and where to allocate the credit, the Division must consider the need for affordable housing throughout the state of Nevada. The purpose of the QAP is to reserve Federal Tax Credits for the creation and maintenance of rental housing units for low and very low-income households in the state in such a way as to further the following principles and priorities:

• Reserve credits in order to provide an equitable distribution throughout the state;

Nevada’s 2018 QAP sets aside 10% of its total allocation to USDA-RD projects (totaling $734,301).  The set-aside is limited to acquisition/rehabilitation projects.  Acquisition/Rehabilitation projects in this set-aside must meet USDA-RD’s definition of substantial rehabilitation and requires a letter from USDA explaining why the rehabilitation is warranted and that the scope of the capital needs assessment is acceptable.

In addition, after Nevada allocates tax credits to its established set-aside categories, the remaining tax credits are allocated into geographic accounts established for Clark County, Washoe County and Other Nevada Counties. Allocations are based on population estimates, with Clark County receiving 73.35% of the state’s total allocation, Washoe County receiving 15.18%, and other counties receiving a total of 11.47%. The highest scoring applications will be funded in their count account until the remaining credits are insufficient to fund another project. All remaining credits will go into the general pool.

Contributed By: 
National Housing Trust

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