Analysis of State Qualified Allocation Plans
for the Low-Income Housing Tax Credit Program (May 2002,
95 p.)
The Low-Income Housing Tax Credit Program (LIHTC), managed by the Department
of Treasury's Internal Revenue Service, is currently the largest
source of federal subsidy for adding new or rehabilitated
rental housing units to the affordable housing stock in the
United States. Between 1987 and 2000, equity raised through
the tax credit program facilitated the creation or rehabilitation
of over 1.1 million housing units affordable to persons and
families with incomes at or below 60 percent of HUD Area Median
Family Income. Congress recently increased each state's annual
per capita tax credit allocation by 40 percent, which should
cause annual production to increase significantly in the next
two to three years.
The Qualified Allocation Plan is a federally mandated planning
requirement that states annually use to explain the basis
upon which they distribute their LIHTC allocations. Based
on their QAP, states establish preferences and set-asides
within their tax credit competitions so as to target the credits
towards specific places (such as rural areas) or types of
people (such as elderly households). Analysis of State
Qualified Allocation Plans for the Low-Income Housing Tax
Credit Program examines how those preferences and set-asides
were used and changed based on content analysis of 1990 and
2000 Qualified Allocation Plans from nearly every state along
with discussions with the staff that prepared the plans.
This report continues a 25-year PD&R tradition of conducting
research on housing planning requirements. It also marks one
more addition to HUD's expanding library of information about
the LIHTC program. This report is being released simultaneously
with a complementary report on housing planning: Planning
to Meet Local Housing Needs: The Role of HUD's Consolidated
Planning Requirements in the 1990s. Both reports review
the implementation of federally mandated planning requirements
in the 1990s. This report looks at state prepared Qualified
Allocation Plans (QAPs) for the LIHTC program, while the other
looks at locally prepared Comprehensive Housing Affordability
Strategies (CHAS)/Consolidated Plans that carry out the purposes
of the National Affordable Housing Act.
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