On September 21, 2023, the U.S. Department of Housing and Urban Development (HUD) published the 2024 Difficult Development Areas (DDAs) and Qualified Census Tracts (QCT) that are eligible for the 30 percent basis boost under the Housing Credit program. The methodology for determining the 2024 metropolitan DDAs relies on new Small Area Fair Market Rents.
New DDAs and QCTs will become effective on January 1, 2024. Low Income Housing Tax Credit (LIHTC) projects located in an area that was in a DDA in 2023, but will lose its DDA status in 2024, are still eligible for the basis boost if the tax credit allocating agency receives a complete application for the project by the required deadline (December 20, 2023 at 11:59 p.m.). To clarify, OHCS is adjusting our prior 4% LIHTC / Private Activity Bond (PAB) practices to accommodate our new project application process. Applicants that have not yet successfully applied to OHCS for funding consideration, received a recommendation of award, or reservation, can submit required QCT/DDA basis boost preservation materials to OHCS with the sole intent of securing the boost for a future competitive funding cycle.
Upon receiving QCT/DDA Boost Preservation applications, OHCS will issue a determination on whether applications are complete prior to the expiration of the current year’s DDA status by December 31, 2023. For projects determined eligible for the 2023 expired basis boost, OHCS will allow up to 18 months (June 30, 2025) for applicants to secure an OHCS allocation in a competitive funding round where multifamily projects are being considered. OHCS QCT/DDA Preservation determinations are not a promise or guarantee of credit allocation.
Consequently, projects that receive a determination preserving the expiring 2023 QCT/DDA basis boost census tract map must meet the following timing requirements per §42(h)(2):