TCA State HA Survey: Housing Credits Moving Briskly

By Glenn Petherick
September 4, 2013 3 min read

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State allocating agencies are well along awarding their 2013 low-income housing tax credits and many have committed significant amounts of anticipated 2014 credits as well, according to responses to an August survey by the Tax Credit Advisor. Forty-five  state housing credit agencies plus the City of Chicago responded (see pp. 32-33 for state-by-state information).

2013 Credit Activity

As of the date of their survey response, most of the agencies had held the last of their application deadlines for their competitive (9%) 2013 housing credits, though a number of states had not yet announced awards from their final round.

Twenty-one states reported awarding all of their 2013 credits. Another 13 had only small amounts left – from $89 to $235,000. Four states had not yet awarded any 2013 credits yet: Hawaii, Mississippi, Nevada, and North Carolina. North Carolina, though, subsequently made its 2013 awards.

The biggest single pot of remaining 2013 credits, of roughly $36.8 million, is in California. The California Tax Credit Allocation Committee hasn’t yet announced the recipients of these tax credits; the application deadline for its second and final round of 2013 was July 3.

Collectively, the allocating agencies so far have awarded at least $591 million in 2013 housing credits – with $63 million left – for 780 projects with nearly 46,000 total housing units, of which more than 42,000 are tax credit units.

2014 Programs, Activity

Fifteen states and Chicago reported they have a final qualification allocation plan in place for taking applications for 2014 housing credits and making awards. Most remaining agencies have either issued a draft 2014 QAP or expect to do so in the near future.

A number of agencies have already committed significant amounts of 2014 credits, and many have already held an application round for their 2014 credits.

Kansas, New Jersey, and Vermont have already committed all of their 2014 credits, and all their 2013 credits, too. Massachusetts has awarded all its 2013 credits and has just a small amount of remaining 2014 credits.

Twenty-one states have awarded some or all of their 2014 credits thus far, totaling nearly $110 million in credits for 121 projects with close to 7,000 units.

Multifamily Bond Activity

Of the responding housing credit agencies, just 17 said they have issued tax-exempt bonds so far in 2013 to finance affordable rental housing projects (see chart below). While some state housing credit agencies don’t have authority to issue tax-exempt housing bonds, such as California and Massachusetts, most do. Many responding agencies with such authority reported they have not yet issued any multifamily bonds in 2013.

The 17 agencies said they have issued $493 million in tax-exempt bonds so far in 2013 to finance 67 projects containing 7,275 total units. Maryland and Washington State led in total bond volume by dollar amount. By number of units, Maryland led followed by Missouri, Virginia, and Washington. Nearly all the 17 agencies accept applications for bond financing and 4% housing credits year round.

The totals don’t include Connecticut’s allocating agency, which has authorized $14.1 million in bonds for two projects with 146 units, or the New York State Housing Finance Agency, which issues bonds but not 9% credits. In 2013 to date, the New York agency has issued $159.25 million in tax-exempt multifamily bonds for 10 projects with 1,043 units.

Source: Responses to August 2013 survey by Tax Credit Advisor