Wisconsin Announces QCT, HFA Basis Boost Policy for 2016

Wisconsin Housing and Economic Development Authority posted a memo regarding QCT and HFA Basis Boost Policy for 2016.

For the 2016 LIHTC cycle, applicants should include a 9% credit rate in their applications. The recently-enacted legislation does not include a minimum 4% rate, so applicants should continue to use the floating rate (adjusted monthly) for the calculation of acquisition credits.

With the increase in the credit rate from the floating rate of 7.51% (January 2016) to 9%, WHEDA will be reducing the maximum basis boost that may be requested in a competitive LIHTC application. For properties in the Supportive Housing and Rural Set-Asides, the QCT and HFA Basis Boosts will be limited to 20% – for all other set-asides, the QCT and HFA Basis Boost will be limited to 15%.