The U.S. Department of Housing and Urban Development (HUD) established Difficult Development Areas (DDAs) and Qualified Census Tracts (QCTs) for the Low-Income Housing Tax Credit program in 2025. This will impact tax credits and project funding feasibility.
Designated DDAs in metropolitan areas cannot exceed 20% of the total metropolitan population, while nonmetropolitan designated areas follow the same population cap, ensuring a balanced allocation of resources.
Qualified census tracts are defined as having either 50% or more households earning less than 60% of the area's median gross income, or a poverty rate above 25%. This classification helps target funding to those most in need.
Developments in DDAs and QCTs can see a 30% increase in their eligible basis for tax credits, enhancing financial feasibility for affordable housing projects, thus facilitating more developments.
#low-income-housing-tax-credit #hud #difficult-development-areas #qualified-census-tracts #affordable-housing
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