HUD published a Federal Register notice designating 2023 difficult development areas (DDAs) and qualified census tracts (QCTs). LIHTC properties built in a DDA or QCT are qualified to increase their eligible basis by up to 30 percent. The notice designates DDAs for all states, the District of Columbia, Puerto Rico, Guam, the Northern Mariana Islands and the U.S. Virgin Islands. The notice also designates QCTs based on income and poverty data released in the American Community Survey. The 2023 DDAs and QCTs are effective for LIHTC allocations made after Dec. 31, 2022, or for buildings placed in service after Dec. 31, 2022, if those buildings are financed with tax-exempt bonds.