Low-Income Housing Tax Credits & Rural Housing in New Mexico, 2018

The 2018 New Mexico Qualified Allocation Plan (QAP) has a set-aside for rural developments.

Rural Housing Incentives

The following priorities are to be used by MFA in the distribution of tax credits and are reflected in the allocation set-asides and Project Selection Criteria used to rank competitive Projects. These priorities include the following:

1. An equitable distribution of tax credits throughout all parts of the state where affordable housing is needed;

2. Provision of housing to serve documented senior and households with special housing needs, tenant populations of households with children, projects intended for eventual tenant ownership and under-served urban and rural areas;

USDA Rural Development set-aside: 10% of the annual credit ceiling will be set aside for new construction Projects with direct USDA Rural Development (USDA-RD) financing (USDA-RD 514/515/516 and MPR programs) that meet the following requirements:

a. The initial Application for new construction Projects must include the following:

i. A financing commitment for the direct USDA-RD financing. Financing commitments and evidence of USDA-RD debt restructuring must include loan interest rate, term and repayment requirements.

ii. A letter from an authorized officer of the New Mexico USDA-RD office stating that:

    • The Project has been reviewed
    • USDA-RD favorably considers the proposed transaction
    • Upon approval of a complete Application to Rural Development and an award of tax credits, USDA-RD will submit the file to its national office in Washington, DC and recommend final approval of the transaction.

b. The Project’s score must be within 20 percent of the highest scoring Project to be awarded tax credits through the ranking process in the same funding round.

Contributed By: 
National Housing Trust

Other Items of Interest