1 KANSAS HOUSING RESOURCES CORPORATION QUALIFIED ALLOCATION PLAN For 2015 HOUSING TAX CREDIT PROGRAM INTRODUCTION The Tax Reform Act of 1986 established a tax credit to replace previous federal tax incentives for investment in low-income rental housing. The credit offers a reduction in tax liability to investors in eligible low-income residential housing developments. The Omnibus Budget Reconciliation Act of 1993 indefinitely extended the program. The Kansas Housing Resources Corporation (KHRC) is responsible for administration and allocation of the tax credit program for the State of Kansas. Kansas has an allotment of approximately $6,656,101 of annual tax credit authority . Ten percent of the States annual tax credit allotment; approximately $665,610 is reserved for developments submitted by nonprofit applicants. In 2015 reservations will be made from the 2016authority. All provisions shown in this Plan also apply to applications for Private Activity Bonds with annual 4% tax credits. According to Section 42(m)(1)(B) of the Internal Revenue Code (the Code), allocation agencies shall adopt a qualified allocaion plan which: (a) contains selection criteria which are appropriate to local conditions; (b) assigns the highest priority to developments with the lowest cost of intermediaries unless granting such priority would impede the development of developments in hard-to-develop areas; (c) gives preference to developments, which serve the lowest income tenants; (d) gives preference to those developments, which serve qualified tenants for the longest periodof time; (e) provides procedures for monitoring developments and notifying the Internal Revenue Service of any noncompliance that is found by the agency ; (f) allows preference for developments located in qualified census tracts, the development of which contributes to a concerted community revitalization plan ; (g) promotes energy efficiency in a development; (h) recognizes the historic nature of a building in a development.
Posted on: Thu, 13 Nov 2014 01:11:58 +0000
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