Low Income Housing Tax Credits & Private Activity Bonds in Connecticut, 2017

Connecticut's 2017 Qualified Allocation Plan (QAP) defines the 4% tax credit's “as of right credits”. They are non-competitive and used in conjunction with bond financing.

Connecticut’s 2017 QAP states that projects that are financed with the proceeds of tax-exempt bonds are subject to the annual volume cap limitation, such projects may receive Credits without receiving an allocation from the Authority. If fifty percent (50%) or more of the aggregate basis of a project (including land) is financed with the proceeds of such tax-exempt bonds, the entire project is eligible for Credits based on its qualified basis without receiving an allocation of Credits from the Authority. However, all credits for such projects must be determined by the Authority to have been consistent with the State’s QAP, such consistency being determined by the following:

A. Application Criteria: Tax-exempt bond financed projects must meet the application criteria set forth in Section III. F.

B. Underwriting Criteria: Tax-exempt bond financed projects must also meet the underwriting criteria adopted from time to time by the State Bond Commission for multifamily rental housing financed with bonds issued pursuant to an allocation of volume cap authority approved by the State Bond Commission.

C. Credit Limitation: Tax-exempt bond financed projects are also subject to the limitation on the amount of Credits available to a project.

Contributed By: 
National Housing Trust

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