HUD Announces 2013 DDAs for the LIHTC Program

HUD recently designated difficult development areas (DDAs) for 2013 for the low-income housing tax credit (LIHTC). A DDA is an area designated by HUD with high construction, land, and utility costs relative to its area median gross income (AMGI). DDAs are eligible for tax credits at 130 percent of qualified basis, meaning that more of the development costs are borne by the tax credit funding than in areas not designated a DDA.

HUD determines DDAs by comparing incomes with housing costs. And the DDA designations can be found in the Federal Register. 

In addition to announcing the 2013 DDA designations, the notice responds to public comments received in response to the proposed use of Small Area Fair Market Rents (SAFMRs) for designating DDAs as published in the notice ‘‘Statutorily Mandated Designation of Difficult Development Areas and Qualified Census Tracts for 2012,’’ published in the Federal Register on Oct. 27, 2011.

After considering the public comments, HUD has decided to delay by one year the adoption of small area DDAs. The 2014 DDAs will be published in a separate notice at a later date after further consideration of the Small DDA concept.