Each state continues to put its unique stamp on the low-income housing tax credit (LIHTC) program. The latest changes in allocation plans were disclosed by several state housing finance agency representatives during a fast-paced session moderated by Boston Capital’s Bob Moss at the recent AHF Live conference.
In Pennsylvania, two allocation rounds are planned in 2013–one cycle for urban areas and another for suburban/rural developments, according to Holly Glauser of the Pennsylvania Housing Finance Agency.
In Texas, location looks to be the No. 1 focus next year after a recent court ruling that the Texas Department of Housing and Community Affairs unintentionally discriminated in its allocation of housing credits. A lawsuit alleged that the agency discriminated by disproportionately approving developments in predominantly minority, lower-income neighborhoods.
As a result, state housing leaders will be looking to drive deals to higher-income areas.
Elsewhere, there are other challenges.
Containing development costs remains an issue as does providing housing for people with disabilities, said Mark Shelburne of the North Carolina Housing Finance Agency.
His agency requires that 10 percent of the units in a development are set aside for special-needs residents.
Another trend to watch is the number of developments receiving LIHTC reservations. In many cases, more credits are going to fewer developments.
In North Carolina, roughly 50 projects used to receive reservations each year, but in a recent year the number was in the 30s, according to Shelburne.
