Multifamily Housing Policy Drafting Table

Qualified Contract Loophole in the Low-Income Tax Credit Program

WELCOME TO THE MULTIFAMILY HOUSING POLICY DRAFTING TABLE.

This Housing Notice (HN) introduces new guidance pertaining to Federal Housing Administration (FHA) Multifamily rental and Risk Share transactions that receive new Low-Income Housing Tax Credits (LIHTC) pursuant to 26 U.S. Code § 42. Through this HN, FHA is requiring project owners seeking access to FHA Multifamily rental and Risk Share insurance programs to waive their right to use the Qualified Contract (“QC”) provision in the LIHTC statute. This Housing Notice applies to FHA Multifamily rental projects for which a firm commitment has not been issued and Risk Share insurance transactions with Firm Approval Letters (FALs) issued on or after December 31, 2024.

What feedback are we seeking?

HUD is interested in any general or specific feedback on the below Publication.

Where can you send feedback? 

Please send written feedback via e-mail to HSNG_MF_ProductionOffice@HUD.gov with the subject line: “Qualified Contract Loophole in the Low-Income Tax Credit Program” no later than 3:00 PM ET, on or before the below expiration date stated next to the draft Publication. By doing so you assist HUD to efficiently review your comments and to make any possible final revisions.

How can you send feedback? 

To access draft Publication, please simply click on the PDF Draft in the below chart. Provide your comments in the Draft QC Loophole HN Response worksheet Response Worksheet. You will find a link to the Response Worksheet located in the right column of this page under, Feedback Open. Thank you.

Updated: 8/15/2024