Low-Income Housing Tax Credits & Tax Exempt Bonds in New Mexico, 2017

The 2017 New Mexico Qualified Allocation Plan (QAP) provides the requirements and procedures for a project to receive 4% credits.

Private Activity Bonds with 4% Credits

Projects financed with Tax Exempt Bonds are eligible for 4 Percent Credits only.

The Eligible Basis attributable to new construction or rehabilitation costs for a Tax Exempt Bond Financed Project may be increased by up to 30 percent for the purpose of calculating Tax Credits only if the Project is located in a HUD-designated Qualified Census Tract or a HUD-designated Difficult Development Area

The maximum Applicable Credit Percentage for acquisition of an existing building that will be subsequently rehabilitated is 4 percent. In no case will a Project’s Eligible Basis attributable to the acquisition of an existing building be increased.

Tax Exempt Bond Financed Projects will also be scored and must obtain a score of at least 80 points in order to obtain a Letter of Determination that they are consistent with the QAP. Included within those 80 minimum points must be points for serving a targeted population (Households with Special Needs, Senior Households or Households with Children)

Total Development Cost for tax exempt bond financed projects must not exceed the limits established for new construction, Adaptive Reuse or Acquisition/Rehabilitation Projects, as appropriate, submitted in the most recent allocation round.

Contributed By: 
National Housing Trust

Other Items of Interest