DHCD Releases Draft 2020-2021 QAP

On September 25, the Department of Housing and Community Development (DHCD) released its Draft 2020-2021 Qualified Allocation Plan (QAP). To download a copy of the draft, click here.

The QAP determines how DHCD distributes the federal and state Low Income Housing Tax Credit and other affordable housing bond programs. The plan outlines specific criteria and eligibility requirements and establishes a scoring system to evaluate projects and priorities. The QAP is reviewed and revised every two years, with opportunity for public comment.

Significant changes proposed in the draft QAP include altering design and scope guidelines to encourage green, sustainable, and climate resilient design in projects. Specifically, the “Fundamental Design Characteristics” section of this QAP has been revised to reflect a greater emphasis on environmentally-sensitive components of design and scope. Further, the “Special Project Characteristics” section also has been revised to encourage sponsors to incorporate more green, sustainable, and climate resilient elements into their projects. In addition, the checklists included as attachments to the QAP have been modified to conform to the modified design and scope requirements.

DHCD also made changes to design and scope requirements in projects for seniors. At the request of the Governor’s Council on Issues Related to Aging, DHCD incorporated a senior housing design checklist as Appendix K to the document. 

DHCD increased the minimum percentage of extremely low income (ELI) housing units required in each LIHTC project. The minimum percentage will remain at 10% for the February 2020 rental funding round. However, sponsors seeking LIHTC or other resources later in 2020 and in 2021 will be required to reserve a minimum of 13% of the units within a project as ELI units.

Although DHCD did not update cost limits for projects, the draft QAP indicates that the department is in the process of updating these limits.

For a document comparing the current 2018-2019 QAP with the Draft 2020-2021 QAP, click here.

DHCD will hold a public hearing on the Draft QAP on Thursday, October 10, 2019, at 1:30 p.m. at its offices. Written comments can also be submitted to DHCD by October 10. For more information on the hearing, how to RSVP, and how to submit comments, please click here.

For a sample letter to submit comments on the 2020-21 QAP, click here.