Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities

2004 Housing Tax Credit Program QAP Now Available

The Qualified Allocation Plan and Rules (QAP) for the 2004 Housing Tax Credit (HTC) Program cycle approved November 14 by the TDHCA Governing Board is now available online. The QAP awaits final approval by Governor Rick Perry; however, developers, tax credit syndicators, housing advocates, and the general public may review the QAP submitted to the Governor (PDF).

The QAP contains the rules by which TDHCA will administer the 2004 HTC Program allocation. The HTC Program is the state's primary means of directing private capital toward the creation of affordable rental housing. The tax credits allow developers to offset a portion of their federal tax liability in exchange for the production of rental housing to low income families and individuals. The value associated with the tax credits allows residences in HTC developments to be leased to qualified tenants at below market rate rents.

Created by the Tax Reform Act of 1986, the real estate development community first utilized the HTC Program during calendar year 1987, helping to build or renovate nearly 100,000 units of affordable rental housing. Section 42 of the Internal Revenue Code governs the program and allocates tax credits in the amount of $1.75 per capita for each state. This amount equates to an annual award of approximately $36 million in credits to the state of Texas. TDHCA is the only entity in the state with the authority to allocate tax credits under this program.