Which low-income housing projects are eligible to receive TCAP funds?
LIHTC projects eligible to receive TCAP grant funds are those that have or will receive an award of LIHTC under §42(h) of the Internal Revenue Code (the Code). The LIHTC project must have received an allocation of credit between October 1, 2006 and September 30, 2009. Projects awarded LIHTCs that will also receive tax-exempt bond financing are eligible to receive TCAP funds. If the only source of tax credits for a project is the Gulf Opportunity Zone or the Midwestern Disaster Area Housing Credit programs, the project is not eligible to receive TCAP funds because these credits are not awarded under §42(h) of the Code. However, the state agency is able to allocate a nominal amount of §42(h) LIHTCs up until September 30, 2009 to make the project eligible to receive TCAP funds. How will state LIHTC allocating agencies award the TCAP funds to eligible projects? State LIHTC allocating agencies must award the TCAP funds on a competitive basis and in accordance with the agency’s qualified all
