Description: Targeted area residences are defined in section 143(j)(1)(A) to include
residences in a qualified census tract. A “qualified census tract,”
according to section 143(j)(2)(A), is a census tract in which 70 percent or
more of the families have income that is 80 percent or less of the
statewide median family income. Section 143(j)(2)(B) of the Code provides
that the determination that a census tract is a “qualified census tract”
must be based on the most recent decennial census for which data are
available. Source: RP-2024-08 (irs.gov)
<https://www.irs.gov/pub/irs-drop/rp-24-08.pdf> (2024 Update)
**ALSO 1983 & 1995 Letters from HUD & IRS approving the following as areas
of chronic economic distress:
Allegany County -
Entire
Baltimore City - Entire
Baltimore County: The following areas of East Towson, Oella, West
Catonsville
Caroline County - Entire
Dorchester County - Entire
Garrett County - Entire
Kent County - Entire
Prince George's County: The following areas of Brentwood, Capitol Heights,
Colmar Manor, Fairmont Heights, Mount Ranier, North Brentwood, Seat Pleasant
Somerset County - Entire
Washington County: The following area of Hagerstown
Wicomico County: The following areas of QCT 0003 & QCT 0102**
Copyright Text: Department of Housing and Community Development, DHCD, Brad Wolters, brad.wolters@maryland.gov
Description: The US Department of Housing and Urban Development (HUD) designates Qualified Census Tracts (QCTs) for purposes of the Low-Income Housing Tax Credit (LIHTC) program. The LIHTC program is defined in Section 42 of the Internal Revenue Code of 1986. The LIHTC is a tax incentive intended to increase the availability of affordable rental housing. The LIHTC statute provides two criteria for QCT eligibility. A census tract must have either: 1) a poverty rate of at least 25 percent; or 2) 50 percent or more of its householders must have incomes below 60 percent of the area median household income. The area corresponds to a metropolitan or a non-metropolitan area. Further, the LIHTC statute requires that no more than 20 percent of the metropolitan area population reside within designated QCTs (This limit also applies collectively to the nonmetropolitan counties in each state). Thus, it is possible for a tract to meet one or both of the above criteria, but not be designated as a QCT. With respect to the census tracts, the Census Bureau defines them in cooperation with local authorities every ten years for the purposes of the decennial census and, following a public comment period, has recently completed defining tract boundaries for the 2010 Census. Note that when census tract boundaries are set, they remain unchanged for the next decade. Thus, tract boundaries will not be changed until the 2020 Decennial Census.
Copyright Text: Department of Housing and Community Development, DHCD, Brad Wolters, brad.wolters@maryland.gov
Description: The Communities of Opportunity designated on the Maryland QAP Comprehensive Opportunity Maps are based on a “Composite Opportunity Index” developed by DHCD. The Composite Opportunity Index uses publicly - available data and is based on three major factors: community health, economic opportunity, and educational opportunity. To be designated a Community of Opportunity, and mapped as such to the Maryland QAP Comprehensive Opportunity Maps, the community must have a Composite Opportunity Index that it is above the statewide average. See Section 3.1 of the Program Guide for more details.
http://dhcd.maryland.gov/HousingDevelopment/Documents/rhf/MD%20Rental%20Financing%20Program%20Guide%20Final%205.8.15.pdf
Copyright Text: Department of Housing and Community Development, DHCD, Brad Wolters, brad.wolters@maryland.gov
Description: Low-Income Housing Tax Credit Qualified Census Tracts must have 50 percent of households with incomes below 60 percent of the Area Median Gross Income (AMGI) or have a poverty rate of 25 percent or more. Difficult Development Areas (DDA) are designated by the U.S. Department of Housing and Urban Development and are based on Fair Market Rents, income limits, the 2010 census counts, and 2006–10 5-year American Community Survey data when they becomes available. Beginning with the 2016 DDA designations, metropolitan DDAs will use Small Area Fair Market Rents (FMRs) rather than metropolitan-area FMRs for designating metropolitan DDAs. Maps of Qualified Census Tracts and Difficult Development Areas are available at: huduser.gov/sadda/sadda_qct.html.
2023 IRS SECTION 42(d)(5)(B) METROPOLITAN DIFFICULT DEVELOPMENT AREAS (OMB Metropolitan Area Definitions, September 14, 2018 [MSA] and derived FY2022 HUD Metro SAFMR Area Definitions [HMFA])
Copyright Text: Department of Housing and Community Development, DHCD
Description: For 2023, there are no Difficult Development Areas.
Low-Income Housing Tax Credit Qualified Census Tracts must have 50 percent of households with incomes below 60 percent of the Area Median Gross Income (AMGI) or have a poverty rate of 25 percent or more. Difficult Development Areas (DDA) are designated by the U.S. Department of Housing and Urban Development and are based on Fair Market Rents, income limits, the 2010 census counts, and 2006–10 5-year American Community Survey data when they becomes available. Beginning with the 2016 DDA designations, metropolitan DDAs will use Small Area Fair Market Rents (FMRs) rather than metropolitan-area FMRs for designating metropolitan DDAs. Maps of Qualified Census Tracts and Difficult Development Areas are available at: huduser.gov/sadda/sadda_qct.html.
Copyright Text: Department of Housing and Community Development, DHCD
Description: The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 establishes a duty for Fannie Mae and Freddie Mac (the Enterprises) to serve the housing needs of very low-, low-, and moderate-income families in rural areas. FHFA has issued a final rule that provides eligibility for Duty to Serve credit for Enterprise mortgage purchases and other activities in “rural areas,” as defined in the rule. Additionally, the final rule specifies supportfor high-needs rural regions as a Regulatory Activity that the Enterprises may consider when developing their plans for the Duty to Serve program. FHFA’s 2017 Rural Areas File designates census tracts in the Metropolitan Statistical Areas (MSAs) and outside of MSAs of the 50 states, the District of Columbia, and Puerto Rico that are considered rural areas or non-rural areas under the final rule. The File also identifies whether census tracts are located in “high-needs” counties in order to determine whether tracts meet the definition of “high-needs rural regions” in the final rule.
Copyright Text: Department of Housing and Community Development, DHCD
Description: The Baltimore Regional Housing Partnership (BRHP) operates the Baltimore Housing Mobility Program (BHMP) in Baltimore City and the five metropolitan counties of Anne Arundel, Baltimore, Carroll, Harford and Howard. The Baltimore Housing Mobility Program encourages families to lease in "Opportunity Areas", which provide opportunities for our families to access areas with good schools, goods and services, low crime rates, and low poverty concentrations. http://www.brhp.org/landlords/development_information_page. The case of Thompson v. HUD. The following link provides information on census tracts designated as Communities of Opportunity in the Thompson case: http://www.brhp.orghttp://dhcd.maryland.gov/HousingDevelopment/Documents/lihtc/Final%202016%20MD%20QAP%20Signed%20by%20Governor%208-9-16.pdf.
Description: The Conciliation Agreement among HUD, several complainants, and Baltimore County to designate 116 census tracts in Baltimore County as Opportunity Areas. These census tracts are outlined in Exhibit F of the Conciliation Agreement found at the following website: http://www.baltimorecountymd.gov/Agencies/planning/fairhousing/hudconciliation.html. As detailed in Section E.3 of the Qualified Allocation Plan, all family projects located in a Community of Opportunity will qualify for the State Basis Boost without prior CDA approval. http://dhcd.maryland.gov/HousingDevelopment/Documents/lihtc/Final%202016%20MD%20QAP%20Signed%20by%20Governor%208-9-16.pdf.
Description: The Communities of Opportunity designated on the Maryland QAP Comprehensive Opportunity Maps are based on a “Composite Opportunity Index” developed by DHCD & SIA. The Composite Opportunity Index uses publicly - available data and is based on three major factors: community health, economic opportunity, and educational opportunity. To be designated a Community of Opportunity, and mapped as such to the Maryland QAP Comprehensive Opportunity Maps, the community must have a Composite Opportunity Index that is above the statewide average. See the 2023 Revision to the Qualified Allocation Plan and Multifamily Rental Financing Program Guide (maryland.gov) (https://dhcd.maryland.gov/HousingDevelopment/Pages/QAPGuideRevisions.aspx) for more details.
Copyright Text: MD iMAP; Department of Housing and Community Development, DHCD, Brad Wolters, brad.wolters@maryland.gov