It lists the State's priorities for affordable housing development and gives scoring criteria the State will use when selecting projects to receive annual tax credits. The State usually announces an application period when developers of low-income rental projects may compete for an annual allocation of tax credits. As competition for tax credits has increased, developers are using the Tax Exempt Bond financing program along with the tax credit program. The advantage is that projects that receive an allocation of bond financing are not required to compete for tax credits . The project will receive the tax credits if it conforms to the requirements of the bond program .
Tax credits benefit only tax-paying entities, and are limited to the owners of the property .
However, most owners of low-income rental housing are either governmental agencies or nonprofit organizations that do not pay taxes. The newly created limited partnership will own the property. A limited partnership is governed by a partnership agreement. This agreement typically provides for two types of partner - general and limited partners. General partners are actively involved in running the partnership, while limited partners are investors with liability limited only to the amount of their investment.