Qualified Allocation Plan (QAP)
Virginia Housing is advancing proposed amendments to the Low-Income Housing Tax Credit (LIHTC) Qualified Allocation Plan (QAP). The revisions are not yet final and will undergo the required public review process. The amendments are based on feedback from Virginia Housing staff and stakeholders. Among other revisions, the proposed amendments would:
- Reduce scoring incentives for veteran-owned and service-disabled veteran-owned businesses, citing administrative difficulty, regional inconsistencies, added project costs, and limited evidence that the points were producing the intended partnerships.
- Reduce points for projects using project-based vouchers (PBVs), responding to concerns that PBVs can add uncertainty and complexity to project financing and implementation.
Clean and redlined versions of the draft 2027 QAP are available here. Virginia Housing will hold a public hearing on the proposed amendments at 10 a.m. on August 31 at its Richmond office. The Board is expected to consider adoption on September 16. The draft 2027 QAP is projected to take effect January 1, 2027.
Private Activity Bond Capacity
Virginia Housing reviewed its private activity bond allocation and upcoming issuances. Bond-cap availability remains central to 4% LIHTC transactions, particularly as demand for tax-exempt financing rises. Recent legislation patroned by Delegate Josh Thomas (D – Prince William County) increasing housing’s share of Virginia’s private activity bond allocation should expand capacity, though project timing and allocation procedures remain important.
Questions?
Reach out to HBAV’s Vice President of Government Affairs, Andrew Clark at [email protected].