HPD allocates a portion of the State of New York's federal Low Income Housing Tax Credit allotment - both 9% competitive credits and 4% "as-of-right" credits. The amount of HPD's authority is negotiated annually with the State. Typically, HPD allocates $12-14 million in credits per year to 20 or more projects creating approximately 1,000 low-income units.
HPD awards Tax Credits to new construction or substantial rehabilitation projects in New York City where at least twenty percent of apartments are reserved for low-income households. HPD holds one annual funding round for the 9% credits, while it allocates the 4% credits throughout the year. The competitive 9% credits are awarded to developers based on selection criteria specified in the City's Qualified Allocation Plan. Once tax credits are allocated to a project, the developer typically sells the credits to corporate investors who supply private equity to cover a portion of development costs. The investors often participate through pooled equity funds raised by syndicators such as the New York Equity Fund, the Enterprise Social Investment Corporation, and others. The investors receive credits that reduce their corporate federal income tax bills for ten years.
Pursuant to Revenue Procedure 2014-49, the New York City Department of Housing Preservation and Development has determined that the extent of the damage caused by the New York COVID-19 Pandemic Major Disaster in New York City warrants a 12-month extension of the placed-in-service deadline for all projects with a carryover allocation of 2018 and 2019 low income housing tax credits from HPD.
HPD encourages project owners to review Notice 2022-05 (available at: Notice), published by the US Department of Treasury in response to the continuing presence of the pandemic and precautions necessitated by new disease variants. Notice 2022-05 provides certain new relief and extends the temporary relief for certain requirements addressed in Notice 2021-12, including, in particular, extensions for projects with a PIS deadline in 2020, 2021, and 2022.
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Documents and Forms
Credits Awarded by HPD
Christina Duran, Executive Director of LIHTC Allocations