Governor Rick Snyder recently approved the Michigan State Housing Development Authority's (MSHDA) Qualified Allocation Plan (QAP). The QAP is a federally mandated planning requirement that states annually use to explain the basis upon which they distribute their low-income housing tax credit allocations. Based on their QAP, states establish preferences and set-asides within their tax credit competitions so as to target the credits towards specific places, such as rural areas, or types of people, such as elderly households.
The recently approved plan was completely overhauled for developers and investors just in time for the Aug. 15 application deadline. "With 25 years of history behind us, it became clear that the time had come for a significant re-write and overhaul of the QAP if we were going to be responsive to Michigan's economic challenges and remain true to our mission," said MSHDA Executive Director Gary Heidel. "This simplified, full-process overhaul will make Michigan more attractive for developers to invest in the state despite the overall decline in federal funding. It will help Michigan recover while restoring cities and increasing the quality of life in all of our communities."
Revamping of the plan began in August 2011 and included public hearings, interest group and stakeholder meetings, focus groups, and summits. Many of the plan's changes in scoring involve components to stimulate community revitalization in rural and urban areas and take into consideration proximity to transportation and other placemaking amenities. Cost containment, permanent supportive housing category modifications, and community support among others also are included in the changes. In addition, the new version of the Primary Application will be available in Excel form for easier use.