Survey Finds Many States Have Committed All 2006 Credits; A Number Underway for 2007

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Tax Credit Advisor July, 2006: Nearly two-thirds of state housing credit agencies (HCAs) responding to a recent survey have committed all or nearly all of their 2006 low-income housing tax credits. More than a third have awarded some 2007 housing credits, and a number of states have begun work on their 2007 credit program plans and schedules.

The information was provided by 31 state HCAs responding – of 54 total – to June survey by the Tax Credit Advisor. Complete state-by-state summaries of their responses are posted online at http://www.housingonline.com. States also described common mistakes they see on the housing credit applications they receive.

2006 Fully Committed

Twenty of the 31 state HCAs that responded to the TCA survey – 65 percent – indicated they’ve committed to specific projects all or almost all of their 2006 housing credits. Committed includes allocated, reserved, or pledged through letters of intent.

These states included Ala., Ariz., Ark., Del., Idaho, Kan., Mass., Me., Minn., Mo., Mont., N.C., N.D., N.M., N.Y. (NY State Dept. of Housing & Community Renewal), R.I., Utah, Va., Vt., and Wash. The remaining respondents were Colo., Ga., Ill., Md., Ms., N.H., Ohio, Pa., S.C., and Tenn.

Md. has awarded about 90 percent of its 2006 credits, Ill. is in the process of committing its remaining credits, and Wisconsin is in the award decision phase. Ohio and S.C. plan to announce awards on July 3 and in mid-August, respectively.

Some states had significant amounts of 2006 credits uncommitted as of the date of their survey response. Three were states that have already had their last application deadline pass: Tenn., with about 90 percent of its 2006 credits left; Pennsylvania, about half; and Ga., all. Colorado had about 41 percent left with a final funding round application deadline of August 1 (July 1 for notice of intent to apply), and New Hampshire, with about half left, with a final round deadline of June 30.

States that indicated they still have future funding rounds for remaining 2006 credits, with application deadlines, included: Colo. (7/1/06, for notices of intent); N.H. (6/30/06); Kan. (8/15/06); Md. (9/6/06); and Miss. (7/31/06, for Requests For Qualifications).

Among states not responding to the survey, Calif. has a deadline of 7/20/06 for its second round, and Oklahoma a deadline of 7/5/06 for its second round.

2007 Credit Program Activity

Eleven states – 35 percent of respondents – indicated they’ve already awarded some 2007 housing credits, ranging from $22 million N.Y. State DHCR down to $216,519 by Del. Others that have committed 2007 credits have been Ala., Colo., Idaho, Ill., Kan., Mass., N.M., Va., and Vt.

States also reported on the status of their 2007 credit programs, both on whether they’ve issued a new qualified allocation plan and established application deadlines. States varied widely.

Minn. noted it has a final 2007 QAP. Ill. and Vt. have current QAPs that cover 2006-2007. NYDHCR said it’s not considering changes to its QAP. Mont/ said it’s moving to a two-year QAP and issued a draft that’s expected to be final around July 13.

Me., Mo., Penn., and R.I. said they’ve issued a draft 2007 QAP.

Among non-responding states, Neb. and Ore. have each have issued a draft 2007 QAP.

Responding states with established application deadlines for 2007 credits are: Ariz. (3/15/07); Kan. (8/15/06); Ill. (12/4/06, 4/2/07); Idaho (9/8/06, 2/9/07); Mass. (9/8/06, Feb. 2007); Me. (tent. 11/3/06); Minn. (6/20/06, 2/1/07); Mo. (proposed 10/19/06); Mont. (2/2/07); N.M. (1/31/07); N.Y. (Feb. 2007); Penn. (tent. 10/20/06, 4/13/07); R.I. (10/6/06); Utah (tent. 9/12/06); and Wash. (2nd week of March 2007).

Neb. has proposed two funding rounds with full application deadlines of 11//06 and 4/6/07. Mich. has a first round application deadline of 9/15/06 for half its 2007 credits.