Low Income Housing Tax Credits & Preservation in Alaska, 2013

Alaska's 2013 Qualified Allocation Plan incentivizes preservation.

Alaska’s 2013 QAP awards 5 points to all projects involving rehabilitation. Rehabilitation projects must, at minimum, consist of some kind of building renovation and/or demolition and reconstruction where a building is currently located.

Under Alaska’s 2013 QAP, projects are required to meet a minimum rehabilitation cost, which must be the greater of $15,000 per unit or 10% of the “adjusted basis” of the building. Rehabilitation work must also consist of items that are more than just cosmetic in nature and include only physical items.  

Cost Containment: The QAP also awards additional points for rehabilitation only projects (not demolition) based on per-unit construction hard costs. Projects will receive 2 points for hard costs of $20,000-$30,000, up to 10 points for hard costs at $60,001 or higher.

Set-Aside: One-third of available tax credits will be set-aside in the first round of funding for USDA Rural Development Section 515 projects, and HUD Section 8 Contract Project-Based Rental Assistance Projects.

Contributed By: 
National Housing Trust

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