State Agencies Making Preservation a Priority

An examination of the proposed Qualified Allocation Plans (QAP’s) for 2011 makes clear that preservation of existing housing is becoming more of a priority for the tax credit program. In 2011, a number of states, including Arizona, Florida, New Hampshire, North Carolina, Ohio, and Wisconsin have established incentives for preservation. Incentives include additional points for competitive applications, increased set-asides, and allocation priorities.

Developers seeking credits in these and other states should carefully examine the QAP’s and tailor applications to maximize the potential for success; in many cases, this will mean the development of acquisition/rehabilitation projects as opposed to new construction.