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Low Income Housing Tax Credit Program

The federal Low Income Housing Tax Credit ("LIHTC") Program is frequently used in conjunction with New York State Housing Finance Agency ("NYSHFA") financing. NYSHFA is one of three sub-allocating agencies in the State of New York. As such, NYSHFA allocates Cap Credits from the State Annual Allocation Cap, and "as of right" credits generated through the use of proceeds of federally tax exempt private activity bonds issued by NYSHFA to finance qualified residential rental projects. The LIHTC application for projects financed by NYSHFA is included in the overall Multifamily Financing Applications.

NYSHFA also allocates "As of Right" credits to projects financed by Private Activity Bonds issued by other State agencies such as Industrial Development Agencies and Public Housing Authorities and maintains a separate application process for projects which only require the allocation of 4%, "As of Right" LIHTC.

Projects that obtain financing from other sources may receive allocations of Cap Credits from the State Annual Allocation Cap from the primary New York State LIHTC allocating agency, the New York State Division of Housing and Community Renewal ("DHCR"), or from one of the other sub-allocating agencies, the New York City Department of Housing Preservation and Development and the Development Authority of the North Country.

NYSHFA has its own Qualified Allocation Plan ("QAP") which governs the allocation or allowance by NYSHFA of Cap Credits, as well as the allocation of "as of right" credits, under Section 42 of the Internal Revenue Code ("Code"). Cap Credits may only be used in conjunction with taxable bond financing or conventional financing. Projects that receive taxable bond financing from the Agency and that are eligible for Cap Credits subject to the State LIHTC Ceiling (the total amount of Cap Credits available in New York State) may receive such credits pursuant to NYSHFA's QAP only if DHCR has authorized NYSHFA to allocate Cap Credits for the project from the State Ceiling, and the project meets all criteria applicable under NYSHFA's QAP. The QAP also governs NYSHFA's LIHTC project monitoring program.

Last updated: 04/22/15