Lessons Learned from TCAP and Exchange: State Agencies Move Forward Without the Extra Dollars
By Caitlin Jones
1 min read
Tax Credit Advisor, May 2011: How are state housing credit agencies coping without the massive extra dollars that the Tax Credit Assistance Program and Section 1602 exchange program once provided? What lessons did they learn? Did their experiences foster any lasting changes to their low-income housing tax credit programs?
The TCAP and exchange programs, established by the American Recovery and Reinvestment Act (ARRA) enacted in February 2009, provided a lifeline to state HCAs and the LIHTC industry that tided them through the dark, angst-filled days of the market downturn, when tax credit prices tumbled, the supply of investor equity shrank, some syndicators stumbled, and more than a few developers skinned their knees. Under the two programs, state HCAs received billions of dollars that they distributed – mostly in 2009 – to proposed new construction or acquisition/rehab projects that had received housing credit awards but were unable to find sufficient or any tax credit equity.
