The Effect of QAP Incentives on the Location of LIHTC Properties - May 7, 2015

HUD User published a new study “The Effect of QAP Incentives on the Location of LIHTC Properties” which examines whether changes in the Qualified Allocation Plans (QAP) of 21 states (including Massachusetts) increased siting of 9% credit projects in low poverty areas and decreased siting in high poverty areas (poverty rate above 30%).   Massachusetts had the largest number of QAP changes seen as supporting that goal.  When comparing the poverty tract characteristics of allocations made in 2003-2005 and allocations made in 2011-2013, the study shows Massachusetts made progress in reducing the share of units receiving allocations in high poverty tracts and increasing the share in low poverty (< 10%) tracts.  While it still had the third highest rate of siting in high poverty tracts in 2011-2013 among the 21 states, the percentage of allocations to such tracts fell from 58.9% in 2003-2005 to 40.6% in 2011-2013).  Massachusetts also increased the share of units in low poverty tracts (32.1% in 2011-2013 compared to 23.7% in 2003-2005), giving it the fourth highest ranking among the 21 states in 2011-2013.  The average poverty rate for units receiving allocations in Massachusetts during those two periods fell from 27.4% to 24.2%.