Low Income Housing Tax Credits & Preservation in Alaska, 2014

Alaska's 2014 Qualified Allocation Plan incentivizes preservation.

Alaska’s 2014 QAP awards 2 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.

Cost Containment: The QAP also awards an additional 8 points for rehabilitation only projects (not demolition) based on per-unit construction hard costs. Projects will receive 2 points for hard costs of $30,001-$40,000, up to 8 points for hard costs at $60,001 or higher.

Set-Side: Alaska's QAP also sets aside 25% of tax-credits in the first round of funding for project-based rental assistance projects. To qualify, projects must have at least 50% of the total units in the project assisted by project-based rental assistance. 

Under Alaska’s 2014 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.  

Contributed By: 
National Housing Trust

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