Low Income Housing Tax Credits & Preservation in Virginia, 2018

Virginias 2018 QAP awards points for preservation and extended use

Point Incentives

20 points are awarded to developments currently subject to HUD’s Section 8 or Section 236 programs or Rural Development’s Section 515 program. In addition, 10 points are awarded to developments receiving new project-based subsidy from HUD or Rural Development for the greater of 5 apartments or 10% of the apartments of the proposed development. 

Extended Use

The 2018 Virginia QAP awards points for a commitment by the applicant to maintain the low-income housing units in the development as a qualified low-income housing development beyond the 30-year extended use period (as defined in the IRC).

-     - 40 points for a 10-year commitment beyond the 30-year extended use period, or

    -50 points for a 20-year commitment beyond the 30-year extended use period

 

Qualified Contracts

After the first day of the fourteenth year of the compliance period, an owner of a low-income housing tax credit development may seek to terminate the extended use period pursuant to §42(h)(6)(E) by requesting the Authority to present a qualified contract for the acquisition of the low-income portion of the development, unless such right to terminate has already been waived by the owner for the tax credits allocated to such development. A request for a qualified contract shall be commenced by filing with the Authority a complete application, on such form or forms as the executive director may from time to time prescribe or approve, together with such documents and additional information as may be requested by the Authority in order to comply with the IRC and this chapter and to determine the qualified contract price in accordance with §42(h)(6)(F). The executive director may reject any application from consideration for a qualified contract, if in such application, the owner does not provide the proper documentation or information on the forms prescribed by the executive director

Contributed By: 
National Housing Trust

Other Items of Interest