Monday, May 21, 2018

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Why a QCT/DDA?

What is a QCT / DDA?

A QCT is a census tract where the average median income is less than 60% of the county median income, or where the poverty rate is greater than 25%. A DDA is an area that has high construction, land and utility costs, relative to the Area Median Gross Income (AMGI).

Featured QCT/DDA/LIHTC Listings

Tulsa Site in Enterprise Zone(5 pts) & QCT (5pts)
Vacant Land, QCT
Tulsa, Oklahoma
7.04 Acres
CS-Shopping Center District Multi-family is allowed as a special exception-106 units per acre

Historic Building in an Enterprise Zone & TIF District
Historic Buildings, QCT
Rockford, Illinois
33,674 SqFt
C-4, multi family is allowed, except for on the ground floor.

Presidentially Declared Disaster Area (5 pts), QCT (5 pts) & with hard corner outlot (future pharmacy)
Vacant Land, QCT
Ponca City , Oklahoma
5.93 Acres
Property is zoned C-1, Commercial, however an approval has been granted for a special use permit to allow multifamily on the rear portion of the site.
Live QCT/DDA/LIHTC Statistics

134 Total Available Listings

Historic Buildings - 24
DDA - 18
Vacant Land - 103
Non-QCT/DDA - 9
Apartments - 7
QCT - 107
Click here to start browsing LIHTC listings! Click here to view sample documentation!
Why a QCT / DDA?

Eligible Basis multiplied by 130% of what it otherwise would be.

Example Eligible Basis Calculation
Non-QCT Calculation QCT Calculation
Total Development Cost of Property (Total Uses) $8,000,000 Total Development Cost of Property (Total Uses) $8,000,000
Less: non-eligible basis (i.e. land, syndication fees, closing costs) ($1,000,000) Less: non-eligible basis (i.e. land, syndication fees, closing costs) ($1,000,000)
Eligible Basis (Total Uses minus land) $7,000,000 Eligible Basis (Total Uses minus land) $7,000,000
Non QCT (100%) $7,000,000 QCT Boost (130%) $9,100,000
Credit Percentage (4% or 9%) 9% Credit Percentage (4% or 9%) 9%
Total annual tax credits (Eligible Basis x Credit Percentage) $630,000 Total annual tax credits (Eligible Basis x Credit Percentage) $819,000
Ten Year Total Credits $6,300,000 Ten Year Total Credits $8,190,000
  Additional QCT Credits (via a QCT) $1,890,000
QCT / DDA Trend

The 30-percent boost in LIHTCs associated with QCTs has helped finance more than one-fourth of all LIHTC projects and approximately one-third of projects in recent years.

In 2004, the latest year for which data is available, 47.5 percent of LIHTC projects and 56.1 percent of LIHTC units were located in a QCT

The chart below suggests an increase of 3.3% (in units) per year, at this rate all units will be located within a QCT/DDA by 2016!

QCT/DDA Trends

*Source: U.S. Department of Housing and Urban Development

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