HELENA—The Montana Board of Housing’s (MBH’s) 2008 qualified allocation plan (QAP) is mostly unchanged from the 2007 QAP, though one change may spur more development of units serving the lowest income levels.
The 2008 QAP will award points for units targeting those earning 30 percent of the area median income (AMI) or below. Developments with 10 percent of their units targeting those earning up to 30 percent of the AMI will be awarded 4 points out of a possible 26 in the "lowest income tenants" category. Rents must hit the 30 percent AMI level without the use of federal or state subsidies— otherwise, MBH will consider those units as targeting 50 percent of the AMI.
The bulk of points awarded in this category are for units serving those at 50 percent of the AMI or below. Developers can win up to 20 points for targeting more than 61 percent of a development’s units at that income level.
In 2007, more than $2.3 million in 9 percent low-income housing tax credits (LIHTCs) was reserved, and more than twice that amount, $5.7 million, was requested. Six projects received 2007 reservations, accounting for 183 tax credit units. The median tax credit award was about $392,000, and the median project size was 30 units.
Seniors developments were popular in 2007, scoring a little more than half of all allocations, or $1.28 million. Rural developments constituted a similar share, with $1.2 million in 2007 LIHTC allocations.
New construction outpaced acquisition- rehabilitation deals by almost 2 to 1, with more than $1.5 million going to new construction deals. Sixty percent of all tax credit units that won reservations were targeted at those earning up to 50 percent of the AMI; 25 percent targeted those with incomes up to 60 percent of the AMI; and the remaining 15 percent went to units targeting residents earning up to 40 percent and 30 percent of the AMI. The nonprofit set-aside was the most oversubscribed in 2007, with 66 percent of all tax credit allocations going to nonprofits.
Montana will have $76 million in taxexempt private-activity bond volume cap in 2008. Allocations are made on a first-come, first-served basis, so there are no deadlines to apply. No changes have been made from 2007’s criteria for awarding bond allocation.
In 2007, two projects have received or were slated to receive bond financing; the first receiving about $5.1 million and the second slated to receive about $2.5 million as of press time. The two developments account for 190 units.
2008 LIHTC PROGRAM:
- 2008 LIHTC authority (est.): $2.3 million
- Application deadlines: Jan. 18, 2008, and May 2,2008