NAHMA HUD Update: Designation of Difficult Development Areas for 2017

October 19, 2016

HUD recently issued the following notice which designates Difficult Development Areas' (DDAs) and Qualified Census Tracts (QCTs) for purposes of the Low-Income Housing Tax Credit (LIHTC). HUD makes new DDA designations annually; however, unlike the effective date of the 2016 QCTs and DDAs, which was July 1, 2016, the 2017 QCTs and DDAs are effective January 1, 2017. HUD is implementing a minimum population requirement for metropolitan Small Difficult Development Areas (SDDAs) in order to avoid designating areas unsuitable for residential development, such as airports. This minimum population requirement is described in the notice.The designations of DDAs in this notice are based on modified Fiscal Year 2016 Small Area Fair Market Rents (SAFMRs), FY2016 income limits, and 2010 Census population counts. This notice also designates QCTs based on new income and poverty data released in the American Community Survey.

The notice may be found here.