Virginia Administrative Code › Title 13 - HOUSING › Agency 5 - DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT › Chapter 175 - RULES AND REGULATIONS FOR THE VIRGINIA LOW-INCOME HOUSING TAX CREDIT › Section 13VAC5-175-30 - Amount and allocation of the Virginia low-income housing tax credit

Current through Register Vol. 40, No. 24, July 15, 2024
The department shall allocate the Virginia low-income housing
				  tax credit up to the maximum amount allowed during any calendar year as
				  specified by § 36-55.63 of the Code of Virginia. The department shall
				  review each application and, based on the application and other information
				  available to the department, shall assign points to each project as
				  follows:
1. Any project that qualifies
				as a "hard-to-develop" project as defined by the Virginia Housing Development
				Authority in the federal low-income housing tax credit application manual. (40
				points)
2. Any project that is
				located within, or that if awarded a state low-income housing credit will
				locate within, a Virginia Enterprise Zone, a Virginia Housing Revitalization
				Zone or a "revitalization area" as defined by the Virginia Housing Development
				Authority, provided the development of low-income housing within such zones or
				areas was included as part of the application under the above-referenced
				community development programs. (40 points)
3. All other qualified low-income housing
				projects not qualifying for points in subdivision 1 or 2 of this section. (20
				points)
4. One bonus point for each
				residential unit reserved for households at or below 40% of area median income,
				as determined by the application for federal low-income housing tax credits (up
				to a maximum of 40 bonus points).
The state credit allocated may be used any time during the
				  five-consecutive-year period beginning with the first year the federal
				  low-income housing tax credit is claimed for the project. The allowable amount
				  of the Virginia low-income housing tax credit for any qualified applicant shall
				  be the lesser of (i) 20% of the amount of the federal low-income housing tax
				  credit allowed during the five-year period or (ii) the amount certified as
				  feasible by the Virginia Housing Development Authority. Upon assignment of
				  points to all applications, the department shall rank the applications based on
				  the number of points assigned. Those applications assigned more points will be
				  ranked higher than those applications assigned fewer points. Applications with
				  the highest rankings shall receive allocations up to the allowable amount prior
				  to any allocations to lower ranking applicants.
Allocations will be made to projects up to the statutory
				  maximum amount of tax credits allowed during the calendar year.
In the event of a tie in the number of points assigned to two
				  or more projects where a full allocation to each applicant with that point
				  total would exceed the maximum tax credit amount authorized by statute during
				  any calendar year, the department shall calculate a pro rata reduction of the
				  amount of tax credit to be allocated to each approved applicant. This reduction
				  shall be made to assure that the established maximum tax credit allocation is
				  not exceeded. The pro rata reduction will not apply to or affect allocations to
				  projects with a higher point total.
Statutory Authority
§ 36-55.63 of the Code of Virginia.