Federal housing tax credits, low-interest loans and tax-exempt bond allocations are awarded annually through a competitive application process. Competition for these resources is intense with only one in four proposals receiving Housing Credits each year.
Working on a team with experience in developing a Housing Credit project is critical. If you are a new developer that has not qualified for Housing Credits in North Carolina or another state before, you need to partner with a developer who has done so successfully.
Eligibility for funding is outlined in the Qualified Allocation Plan (QAP). If you are awarded Low-Income Housing Tax Credits, you will also be considered for the Workforce Housing Loan Program and the Rental Production Program—you do not apply separately for those loans but request them as part of your Housing Credit application. Information on applying for Low-Income Housing Tax Credits or Multifamily Tax-Exempt Bonds is below.
Low-Income Housing Tax Credits
The Housing Credit application process consists of a preliminary application and a full application. Nonrefundable fees apply for each. The preliminary application deals with market demand and site suitability. The nonrefundable fee covers third party costs and the application processing. If you miss the deadline for the preliminary application, you will not be able to submit a full application.
The full application deals with all other aspects of the development, including funding sources, operations and design. Successful applicants pay an allocation and monitoring fee.
Check the current year’s Qualified Allocation Plan (QAP) for important deadlines and application fees. Applications are submitted through our online housing tax credit application. The online application provides interactive checks that help ensure that you meet all submission requirements.
Multifamily Tax-Exempt Bonds
Applications for tax-exempt bond financing are submitted through our online housing tax credit application during the current bond cycle. The online application provides interactive checks that help ensure you meet all submission requirements.
