Plans for allocation of credit among projects

Official source

(A) In general Notwithstanding any other provision of this section, the housing credit dollar amount with respect to any building shall be zero unless— (i) such amount was allocated pursuant to a qualified allocation plan of the housing credit agency which is approved by the governmental unit (in accordance with rules similar to the rules of section 147(f)(2) (other than subparagraph (B)(ii) thereof)) of which such agency is a part, (ii) such agency notifies the chief executive officer (or the equivalent) of the local jurisdiction within which the building is located of such project and provides such individual a reasonable opportunity to comment on the project, (iii) a comprehensive market study of the housing needs of low-income individuals in the area to be served by the project is conducted before the credit allocation is made and at the developer’s expense by a disinterested party who is approved by such agency, and (iv) a written explanation is available to the general public for any allocation of a housing credit dollar amount which is not made in accordance with established priorities and selection criteria of the housing credit agency.

(B) Qualified allocation plan For purposes of this paragraph, the term “qualified allocation plan” means any plan— (i) which sets forth selection criteria to be used to determine housing priorities of the housing credit agency which are appropriate to local conditions, (ii) which also gives preference in allocating housing credit dollar amounts among selected projects to— (I) projects serving the lowest income tenants, (II) projects obligated to serve qualified tenants for the longest periods, and (III) projects which are located in qualified census tracts (as defined in subsection (d)(5)(B)(ii)) and the development of which contributes to a concerted community revitalization plan, and (iii) which provides a procedure that the agency (or an agent or other private contractor of such agency) will follow in monitoring for noncompliance with the provisions of this section and in notifying the Internal Revenue Service of such noncompliance which such agency becomes aware of and in monitoring for noncompliance with habitability standards through regular site visits.

(C) Certain selection criteria must be used The selection criteria set forth in a qualified allocation plan must include (i) project location, (ii) housing needs characteristics, (iii) project characteristics, including whether the project includes the use of existing housing as part of a community revitalization plan, (iv) sponsor characteristics, (v) tenant populations with special housing needs, (vi) public housing waiting lists, (vii) tenant populations of individuals with children, (viii) projects intended for eventual tenant ownership, (ix) the energy efficiency of the project, and (x) the historic nature of the project.

(D) Application to bond financed projects Subsection (h)(4) shall not apply to any project unless the project satisfies the requirements for allocation of a housing credit dollar amount under the qualified allocation plan applicable to the area in which the project is located.

Plans for allocation of credit among projects

Official source

- name: new_non_federally_subsidized_building_minimum_applicable_percentage kind: parameter dtype: Rate source: 26 USC 42(b) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: the applicable percentage shall not be less than 9 percent versions: - effective_from: '2024-01-01' formula: '0.09'

- name: other_building_minimum_applicable_percentage kind: parameter dtype: Rate source: 26 USC 42(b) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: the applicable percentage shall not be less than 4 percent versions: - effective_from: '2024-01-01' formula: '0.04'

- name: supportive_services_qualified_basis_increase_cap_rate kind: parameter dtype: Rate source: 26 USC 42(c) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: 20 percent of the qualified basis of such building versions: - effective_from: '2024-01-01' formula: '0.20'

- name: supportive_services_qualified_basis_increase kind: derived entity: Building dtype: Money period: Year unit: USD source: 26 USC 42(c) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: shall be increased by the lesser of - path: versions[0].formula kind: import import: target: us:statutes/26/42#supportive_services_qualified_basis_increase_cap_rate output: supportive_services_qualified_basis_increase_cap_rate hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- if qualified_low_income_building_described_in_subsection_i_3_B_iii: min(eligible_basis_used_throughout_year_to_provide_supportive_services, supportive_services_qualified_basis_increase_cap_rate * qualified_basis_determined_without_supportive_services_increase) else: 0

- name: high_cost_area_eligible_basis_multiplier kind: parameter dtype: Decimal source: 26 USC 42(d) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: the eligible basis of such building shall be 130 percent versions: - effective_from: '2024-01-01' formula: '1.30'

- name: high_cost_area_new_building_eligible_basis kind: derived entity: Building dtype: Money period: Year unit: USD source: 26 USC 42(d) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: >- In the case of any building located in a qualified census tract or difficult development area - path: versions[0].formula kind: import import: target: us:statutes/26/42#high_cost_area_eligible_basis_multiplier output: high_cost_area_eligible_basis_multiplier hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- if new_building_located_in_designated_qualified_census_tract_or_difficult_development_area: high_cost_area_eligible_basis_multiplier * eligible_basis_determined_without_high_cost_area_increase else: eligible_basis_determined_without_high_cost_area_increase

- name: rehabilitation_minimum_adjusted_basis_rate kind: parameter dtype: Rate source: 26 USC 42(e) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: not less than 20 percent of the adjusted basis versions: - effective_from: '2024-01-01' formula: '0.20'

- name: rehabilitation_expenditures_meet_adjusted_basis_minimum kind: derived entity: Building dtype: Judgment period: Year source: 26 USC 42(e) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: the requirement of this subclause is met if such amount is not less than 20 percent - path: versions[0].formula kind: import import: target: us:statutes/26/42#rehabilitation_minimum_adjusted_basis_rate output: rehabilitation_minimum_adjusted_basis_rate hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- rehabilitation_expenditures_during_eligible_period >= rehabilitation_minimum_adjusted_basis_rate * adjusted_basis_at_start_of_rehabilitation_period

- name: first_year_credit_period_months_denominator kind: parameter dtype: Count source: 26 USC 42(f) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: the denominator of which is 12 versions: - effective_from: '2024-01-01' formula: '12'

- name: first_year_applicable_fraction kind: derived entity: Building dtype: Rate period: Year source: 26 USC 42(f) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: >- the numerator of which is the sum of the applicable fractions determined ... as of the close of each full month - path: versions[0].formula kind: import import: target: us:statutes/26/42#first_year_credit_period_months_denominator output: first_year_credit_period_months_denominator hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- sum_of_month_end_applicable_fractions_for_full_in_service_months / first_year_credit_period_months_denominator

- name: twenty_fifty_test_minimum_unit_rate kind: parameter dtype: Rate source: 26 USC 42(g) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: 20 percent or more of the residential units versions: - effective_from: '2024-01-01' formula: '0.20'

- name: twenty_fifty_test_income_limit_rate kind: parameter dtype: Rate source: 26 USC 42(g) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: 50 percent or less of area median gross income versions: - effective_from: '2024-01-01' formula: '0.50'

- name: project_meets_twenty_fifty_test kind: derived entity: Project dtype: Judgment period: Year source: 26 USC 42(g) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: >- 20 percent or more of the residential units in such project are both rent-restricted and occupied - path: versions[0].formula kind: import import: target: us:statutes/26/42#twenty_fifty_test_minimum_unit_rate output: twenty_fifty_test_minimum_unit_rate hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- rent_restricted_units_occupied_by_individuals_at_or_below_fifty_percent_area_median_income >= twenty_fifty_test_minimum_unit_rate * residential_units_in_project

- name: nonprofit_set_aside_maximum_other_project_rate kind: parameter dtype: Rate source: 26 USC 42(h) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: Not more than 90 percent of the State housing credit ceiling versions: - effective_from: '2024-01-01' formula: '0.90'

- name: maximum_state_ceiling_allocable_to_projects_other_than_qualified_nonprofit_projects kind: derived entity: HousingCreditAgency dtype: Money period: Year unit: USD source: 26 USC 42(h) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: Not more than 90 percent of the State housing credit ceiling - path: versions[0].formula kind: import import: target: us:statutes/26/42#nonprofit_set_aside_maximum_other_project_rate output: nonprofit_set_aside_maximum_other_project_rate hash: sha256:local versions: - effective_from: '2024-01-01' formula: nonprofit_set_aside_maximum_other_project_rate * state_housing_credit_ceiling

- name: qualified_nonprofit_financing_eligible_basis_attribution_limit_rate kind: parameter dtype: Rate source: 26 USC 42(k) metadata: proof: atoms: - path: versions[0].formula kind: parameter source: corpus_citation_path: us/statute/26/42 excerpt: not more than 60 percent of the eligible basis versions: - effective_from: '2024-01-01' formula: '0.60'

- name: qualified_nonprofit_financing_attribution_requirement_met kind: derived entity: Building dtype: Judgment period: Year source: 26 USC 42(k) metadata: proof: atoms: - path: versions[0].formula kind: formula source: corpus_citation_path: us/statute/26/42 excerpt: >- not more than 60 percent of the eligible basis of the qualified low-income building is attributable to such financing - path: versions[0].formula kind: import import: target: us:statutes/26/42#qualified_nonprofit_financing_eligible_basis_attribution_limit_rate output: qualified_nonprofit_financing_eligible_basis_attribution_limit_rate hash: sha256:local versions: - effective_from: '2024-01-01' formula: >- eligible_basis_attributable_to_qualified_nonprofit_financing <= qualified_nonprofit_financing_eligible_basis_attribution_limit_rate * eligible_basis_of_qualified_low_income_building