The Massachusetts Department of Housing & Community Development (MDHCD) is proposing to limit the number of applications a sponsor can submit and an increase in minimum project sizes for 2011. Developer demand for tax credits in 2010 exceeded their availability by a ratio of four to one.
The 2011 Qualified Allocation Plan (QAP) will restrict sponsors to more than two tax credit applications per funding cycle. Also, to ensure a more diverse distribution of credits, per project allocations will be capped at $1 million, except for large-scale neighborhood impact projects, which will be capped at $1.3 million. The department is also requiring a minimum project size of 12 units.