The Massachusetts Department of Housing & Community Development (DHCD) has released the draft version of its 2012 Qualified Allocation Plan (QAP). DHCD anticipates total available funding of $14,662,185 for 2012. No significant substantive changes were submitted during the public comment period; however, DHCD is considering several changes to the 2012 program to help offset the over-demand for 9% low-income housing tax credits.

  • In the first round of 2012, scheduled to begin on February 10, DHCD will only accept applications that were previously submitted and denied. No new applications will be accepted in the January rental round;
  • During the February 2012 round, no sponsorship entity will be allowed to submit more than two applications for funding;
  • DHCD is strongly encouraging all sponsors of preservation projects to structure to seek tax-exempt bond financing using 4% credits, rather than seeking the competitive 9% credit. DHCD will consider making this approach mandatory;
  • DHCD anticipates a second funding round in 2012, and will accept new applications. If necessary, DHCD will incorporate higher threshold standards for new applicants;
  • For future funding rounds, DHCD plans to limit the size of state LITHC awards and to focus the state credit on certain project types.

To read the draft 2012 QAP, click here.