A public hearing on DSHA’s Low-Income Housing Tax Credit Qualified Allocation Plan will be held 9:30 – 11:30 a.m. on Monday, December 11, at the Department of Natural Resources and Environmental Control Auditorium, 89 Kings Highway, Dover, Del.

The draft 2018 QAP has several changes, including the following:

  • Developer Fee
    • Acquisition and land costs have been removed from the exclusions list and may now be considered in total development cost for both 4% and 9% projects.
    • Identity of interest land acquisition: To the extent that Developer Fee does not exceed $1 million (9%) / $1.5 million (4%), the developer is permitted an additional developer fee calculated as 5% of land and acquisition cost (the developer fee may still not exceed $1 million / $1.5 million except for in certain circumstances).
  • Pool Changes
    • Nonprofit: Rather than a 10% set-aside for non-profits, the new proposal awards the highest ranking non-profit project first, awarding credits up to the amount required for financial feasibility.
    • New Housing Creation: 50% of remaining credits after non-profit award
    • Preservation/Rehab: 50% of remaining credits after non-profit award
    • Remaining Credits: Should credits be leftover in either pool, the amount will go first to the highest ranked project in either pool where the pool amount was insufficient to meet the project’s feasibility need. Second, leftover credits will go into a remainder pool, where the highest ranked project requiring the lowest amount of credits and capable of feasibility with the remainder.
  • Due Date: Applications are due no later than 3:00pm on April 30, 2018
  • Waivers: 4% projects are no longer an exception, they are also limited to no more than 3 waiver requests per project. Window to submit waivers is now no later than 30 days prior to application deadline (initially no later than 60 days prior to deadline).

Questions about the QAP or the Low-Income Housing Tax Credit Program should be directed to Cindy Deakyne, DSHA Housing Development Administrator, at 888-363-8808 or cindy@destatehousing.com.