On January 10th, NHT hosted its 14th annual Preservation Roundtable! Held in conjunction with NCSHA’s HFA Institute and attended by 25 allocating Agencies, the Roundtable provided an opportunity for attendees to engage peer Agencies in a frank discussion on strategies and outcomes related to long-term affordability in the Housing Credit program.
A recent survey conducted by Novogradac & Company LLP and NH&RA demonstrates that thousands of affordable Housing Credit homes are annually being converted to market-rate homes, as a result of the Qualified Contract (QC) provision in the program’s underlying statute. NHT’s research illustrates that many states require or incentivize applicants to waive their right to a QC, either indefinitely or for a specific number of years. NCSHA’s recently released Recommended Practices state: “Agencies should require all applicants to waive their right to submit a qualified contract as a condition of receiving an allocation. The waiver requirement should apply to applicants for both 9% Credits and 4% Credits financed with tax-exempt multifamily bonds.”
The Roundtable discussion shed light on the many other ways Agencies are encouraging long-term affordability in the program and allowed Agencies to learn from their peers’ experiences. NHT looks forward to continuing the conversation and engaging allocating Agencies around these issues.
For more information, please contact NHT State and Local Policy director Laura Abernathy.