Statutorily Mandated Designation of Difficult Development Areas and Qualified Census Tracts: Revision of Effective Date for 2015 Designations, 78749-78751 [2015-31766]
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Federal Register / Vol. 80, No. 242 / Thursday, December 17, 2015 / Notices
HRSA specifically requests comments
on (1) the necessity and utility of the
proposed information collection for the
proper performance of the agency’s
functions, (2) the accuracy of the
estimated burden, (3) ways to enhance
the quality, utility, and clarity of the
information to be collected, and (4) the
use of automated collection techniques
or other forms of information
technology to minimize the information
collection burden.
Jackie Painter,
Director, Division of the Executive Secretariat.
[FR Doc. 2015–31641 Filed 12–16–15; 8:45 am]
BILLING CODE 4165–15–P
DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT
[Docket No. FR–5815–N–02]
Statutorily Mandated Designation of
Difficult Development Areas and
Qualified Census Tracts: Revision of
Effective Date for 2015 Designations
This Document
Office of the Assistant
Secretary for Policy Development and
Research, HUD.
ACTION: Notice.
AGENCY:
This document revises the
effective date for designations of
‘‘Difficult Development Areas’’ (DDAs)
and ‘‘Qualified Census Tracts’’ (QCTs)
for purposes of the Low-Income
Housing Tax Credit (LIHTC) under
Internal Revenue Code (IRC) Section 42
(26 U.S.C. 42) published on October 3,
2014 (79 FR 59855). This Notice extends
from 365 days to 730 days the period for
which the 2015 lists of QCTs and DDAs
are effective for projects located in areas
not on the 2016 list of DDAs or QCTs,
published November 24, 2015, at 80 FR
73201, but having submitted
applications while the area was a 2015
QCT or DDA.
FOR FURTHER INFORMATION CONTACT: For
questions on how areas are designated
and on geographic definitions, contact
Michael K. Hollar, Senior Economist,
Economic Development and Public
Finance Division, Office of Policy
Development and Research, Department
of Housing and Urban Development,
451 Seventh Street SW., Room 8234,
Washington, DC 20410–6000; telephone
number (202) 402–5878, or send an
email to Michael.K.Hollar@hud.gov. For
specific legal questions pertaining to
Section 42, contact Branch 5, Office of
the Associate Chief Counsel,
Passthroughs and Special Industries,
Internal Revenue Service, 1111
Constitution Avenue NW., Washington,
DC 20224; telephone number (202) 317–
asabaliauskas on DSK5VPTVN1PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
16:53 Dec 16, 2015
Jkt 238001
4137, fax number (202) 317–6731. For
questions about the ‘‘HUB Zone’’
program, contact Mariana Pardo,
Director, HUBZone Program, Office of
Government Contracting and Business
Development, U.S. Small Business
Administration, 409 Third Street SW.,
Suite 8800, Washington, DC 20416;
telephone number (202) 205–2985, fax
number (202) 481–6443, or send an
email to hubzone@sba.gov. A text
telephone is available for persons with
hearing or speech impairments at 800–
877–8339. (These are not toll-free
telephone numbers.) Additional copies
of this notice are available through HUD
User at 800–245–2691 for a small fee to
cover duplication and mailing costs.
Copies Available Electronically: This
notice and additional information about
DDAs and QCTs are available
electronically on the Internet at https://
www.huduser.org/datasets/qct.html.
SUPPLEMENTARY INFORMATION:
This notice extends from 365 days to
730 days the period for which the 2015
lists of QCTs and DDAs are effective for
projects located in areas not on the 2016
list of DDAs or QCTs, published
November 24, 2015, at 80 FR 73201, but
having submitted applications while the
area was a 2015 QCT or DDA for each
of the 50 states, the District of Columbia,
Puerto Rico, American Samoa, Guam,
the Northern Mariana Islands, and the
U.S. Virgin Islands. The actual
designations of 2015 QCTs and DDAs
are not affected by this notice. HUD is
revising the effective date of the 2015
QCTs and DDAs at this time to aid the
transition to Small Difficult
Development Areas as announced in a
notice designating 2016 QCTs and DDAs
published at 80 FR 73201 and otherwise
ensure that LIHTC and bond-financed
projects relying on 2015 QCT or DDA
designations and not in areas designated
as 2016 QCTs and DDAs, but unable to
meet the 365-day requirement of the
original effective date of the 2015 QCT
and DDA designations, may still be
completed within 730 days.
The sections entitled ‘‘Effective Date’’
and ‘‘Interpretive Examples of Effective
Date’’ of the 2015 DDA and QCT
designations as published October 3,
2014 at 79 FR 59855 are hereby revised
to read as follows:
Effective Date
The 2015 lists of QCTs and DDAs are
effective:
(1) For allocations of credit after
December 31, 2014; or
(2) for purposes of IRC Section
42(h)(4), if the bonds are issued and the
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Fmt 4703
Sfmt 4703
78749
building is placed in service after
December 31, 2014.
If an area is not on a subsequent list
of DDAs, the 2015 lists are effective for
the area if:
(1) The allocation of credit to an
applicant is made no later than the end
of the 730-day period after the applicant
submits a complete application to the
LIHTC-allocating agency, and the
submission is made before the effective
date of the subsequent lists; or
(2) for purposes of IRC Section
42(h)(4), if:
(a) The bonds are issued or the
building is placed in service no later
than the end of the 730-day period after
the applicant submits a complete
application to the bond-issuing agency,
and
(b) the submission is made before the
effective date of the subsequent lists,
provided that both the issuance of the
bonds and the placement in service of
the building occur after the application
is submitted.
An application is deemed to be
submitted on the date it is filed if the
application is determined to be
complete by the credit-allocating or
bond-issuing agency. A ‘‘complete
application’’ means that no more than
de minimis clarification of the
application is required for the agency to
make a decision about the allocation of
tax credits or issuance of bonds
requested in the application.
In the case of a ‘‘multiphase project,’’
the DDA or QCT status of the site of the
project that applies for all phases of the
project is that which applied when the
project received its first allocation of
LIHTC. For purposes of IRC Section
42(h)(4), the DDA or QCT status of the
site of the project that applies for all
phases of the project is that which
applied when the first of the following
occurred: (a) The building(s) in the first
phase were placed in service, or (b) the
bonds were issued.
For purposes of this notice, a
‘‘multiphase project’’ is defined as a set
of buildings to be constructed or
rehabilitated under the rules of the
LIHTC and meeting the following
criteria:
(1) The multiphase composition of the
project (i.e., total number of buildings
and phases in project, with a
description of how many buildings are
to be built in each phase and when each
phase is to be completed, and any other
information required by the agency) is
made known by the applicant in the
first application of credit for any
building in the project, and that
applicant identifies the buildings in the
project for which credit is (or will be)
sought;
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Federal Register / Vol. 80, No. 242 / Thursday, December 17, 2015 / Notices
(2) The aggregate amount of LIHTC
applied for on behalf of, or that would
eventually be allocated to, the buildings
on the site exceeds the one-year
limitation on credits per applicant, as
defined in the Qualified Allocation Plan
(QAP) of the LIHTC-allocating agency,
or the annual per-capita credit authority
of the LIHTC allocating agency, and is
the reason the applicant must request
multiple allocations over 2 or more
years; and
(3) All applications for LIHTC for
buildings on the site are made in
immediately consecutive years.
Members of the public are hereby
reminded that the Secretary of Housing
and Urban Development, or the
Secretary’s designee, has legal authority
to designate DDAs and QCTs, by
publishing lists of geographic entities as
defined by, in the case of DDAs, the
Census Bureau, the several states and
the governments of the insular areas of
the United States and, in the case of
QCTs, by the Census Bureau; and to
establish the effective dates of such lists.
The Secretary of the Treasury, through
the IRS thereof, has sole legal authority
to interpret, and to determine and
enforce compliance with the IRC and
associated regulations, including
Federal Register notices published by
HUD for purposes of designating DDAs
and QCTs. Representations made by any
other entity as to the content of HUD
notices designating DDAs and QCTs that
do not precisely match the language
published by HUD should not be relied
upon by taxpayers in determining what
actions are necessary to comply with
HUD notices.
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Interpretive Examples of Effective Date
For the convenience of readers of this
notice, interpretive examples are
provided below to illustrate the
consequences of the effective date in
areas that gain or lose DDA status. The
examples covering DDAs are equally
applicable to QCT designations.
(Case A) Project A is located in a 2015
DDA that is NOT a designated DDA in
2016 or 2017. A complete application
for tax credits for Project A is filed with
the allocating agency on November 15,
2015. Credits are allocated to Project A
on October 30, 2017. Project A is
eligible for the increase in basis
accorded a project in a 2015 DDA
because the application was filed
BEFORE January 1, 2016 (the effective
date for the 2016 DDA lists), and
because tax credits were allocated no
later than the end of the 730-day period
after the filing of the complete
application for an allocation of tax
credits.
VerDate Sep<11>2014
16:53 Dec 16, 2015
Jkt 238001
(Case B) Project B is located in a 2015
DDA that is NOT a designated DDA in
2016, 2017, or 2018. A complete
application for tax credits for Project B
is filed with the allocating agency on
December 1, 2015. Credits are allocated
to Project B on March 30, 2018. Project
B is NOT eligible for the increase in
basis accorded a project in a 2015 DDA
because, although the application for an
allocation of tax credits was filed
BEFORE January 1, 2016 (the effective
date of the 2016 DDA lists), the tax
credits were allocated later than the end
of the 730-day period after the filing of
the complete application.
(Case C) Project C is located in a 2015
DDA that was not a DDA in 2014.
Project C was placed in service on
November 15, 2014. A complete
application for tax-exempt bond
financing for Project C is filed with the
bond-issuing agency on January 15,
2015. The bonds that will support the
permanent financing of Project C are
issued on September 30, 2015. Project C
is NOT eligible for the increase in basis
otherwise accorded a project in a 2015
DDA, because the project was placed in
service BEFORE January 1, 2015.
(Case D) Project D is located in an area
that is a DDA in 2015, but is NOT a DDA
in 2016, 2017, or 2018. A complete
application for tax-exempt bond
financing for Project D is filed with the
bond-issuing agency on October 30,
2015. Bonds are issued for Project D on
April 30, 2017, but Project D is not
placed in service until January 30, 2018.
Project D is eligible for the increase in
basis available to projects located in
2015 DDAs because: (1) One of the two
events necessary for triggering the
effective date for buildings described in
Section 42(h)(4)(B) of the IRC (the two
events being bonds issued and buildings
placed in service) took place on April
30, 2017, within the 730-day period
after a complete application for taxexempt bond financing was filed, (2) the
application was filed during a time
when the location of Project D was in a
DDA, and (3) both the issuance of the
bonds and placement in service of
Project D occurred after the application
was submitted.
(Case E) Project E is a multiphase
project located in a 2015 DDA that is
NOT a designated DDA in 2016. The
first phase of Project E received an
allocation of credits in 2015, pursuant to
an application filed March 15, 2015,
which describes the multiphase
composition of the project. An
application for tax credits for the second
phase Project E is filed with the
allocating agency by the same entity on
March 15, 2016. The second phase of
Project E is located on a contiguous site.
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Frm 00043
Fmt 4703
Sfmt 4703
Credits are allocated to the second
phase of Project E on October 30, 2016.
The aggregate amount of credits
allocated to the two phases of Project E
exceeds the amount of credits that may
be allocated to an applicant in one year
under the allocating agency’s QAP and
is the reason that applications were
made in multiple phases. The second
phase of Project E is, therefore, eligible
for the increase in basis accorded a
project in a 2015 DDA, because it meets
all of the conditions to be a part of a
multiphase project.
(Case F) Project F is a multiphase
project located in a 2015 DDA that is
NOT a designated DDA in 2016. The
first phase of Project F received an
allocation of credits in 2015, pursuant to
an application filed March 15, 2015,
which does not describe the multiphase
composition of the project. An
application for tax credits for the second
phase of Project F is filed with the
allocating agency by the same entity on
March 15, 2017. Credits are allocated to
the second phase of Project F on
October 30, 2017. The aggregate amount
of credits allocated to the two phases of
Project F exceeds the amount of credits
that may be allocated to an applicant in
one year under the allocating agency’s
QAP. The second phase of Project F is,
therefore, NOT eligible for the increase
in basis accorded a project in a 2015
DDA, since it does not meet all of the
conditions for a multiphase project, as
defined in this notice. The original
application for credits for the first phase
did not describe the multiphase
composition of the project. Also, the
application for credits for the second
phase of Project F was not made in the
year immediately following the first
phase application year.
Findings and Certifications
Environmental Impact
This notice involves the
establishment of fiscal requirements or
procedures that are related to rate and
cost determinations and do not
constitute a development decision
affecting the physical condition of
specific project areas or building sites.
Accordingly, under 40 CFR 1508.4 of
the regulations of the Council on
Environmental Quality and 24 CFR
50.19(c)(6) of HUD’s regulations, this
notice is categorically excluded from
environmental review under the
National Environmental Policy Act of
1969 (42 U.S.C. 4321).
Federalism Impact
Executive Order 13132 (entitled
‘‘Federalism’’) prohibits an agency from
publishing any policy document that
E:\FR\FM\17DEN1.SGM
17DEN1
78751
Federal Register / Vol. 80, No. 242 / Thursday, December 17, 2015 / Notices
has federalism implications if the
document either imposes substantial
direct compliance costs on state and
local governments and is not required
by statute, or the document preempts
state law, unless the agency meets the
consultation and funding requirements
of section 6 of the executive order. This
notice merely designates DDAs as
required under IRC Section 42, as
amended, for the use by political
subdivisions of the states in allocating
the LIHTC. This notice also details the
technical method used in making such
designations. As a result, this notice is
not subject to review under the order.
Dated: December 10, 2015.
Katherine M. O’Regan,
Assistant Secretary for Policy Development
and Research.
[FR Doc. 2015–31766 Filed 12–16–15; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
[FWS–R3–ES–2015–N201;
FX3ES11130300000–167–FF03E00000]
Endangered and Threatened Wildlife
and Plants; Initiation of 5-Year Status
Reviews of One Listed Animal and Five
Listed Plant Species
Fish and Wildlife Service,
Interior.
ACTION: Notice of initiation of reviews;
request for information.
AGENCY:
We, the U.S. Fish and
Wildlife Service, are initiating 5-year
status reviews under the Endangered
Species Act of 1973, as amended (Act),
for one animal and five plant species. A
5-year status review is based on the best
scientific and commercial data available
at the time of the review; therefore, we
SUMMARY:
are requesting submission of any such
information that has become available
since the last review for the species.
DATES: To ensure consideration, please
send your written information by
February 16, 2016. However, we will
continue to accept new information
about any listed species at any time.
ADDRESSES: For how to send comments
or information for each species, see the
table in the SUPPLEMENTARY INFORMATION
section.
FOR FURTHER INFORMATION CONTACT: To
request information, contact the
appropriate person in the table in the
SUPPLEMENTARY INFORMATION section.
Individuals who are hearing impaired or
speech impaired may call the Federal
Relay Service at 800–877–8339 for TTY
assistance.
SUPPLEMENTARY INFORMATION: We are
initiating 5-year status reviews under
the Endangered Species Act of 1973, as
amended (Act), for one animal and five
plant species: Illinois cave amphipod
(Gammarus acherondytes), Michigan
monkey flower (Mimulus
michiganensis), Running buffalo clover
(Trifolium stoloniferum), Minnesota
dwarf trout lily (Erythronium
propullans), Western prairie fringed
orchid (Platanthera praeclara), and
Prairie bush clover (Lespedeza
leptostachya).
Why do we conduct 5-year reviews?
Under the Act (16 U.S.C. 1531 et seq.),
we maintain Lists of Endangered and
Threatened Wildlife and Plants (which
we collectively refer to as the List) in
the Code of Federal Regulations (CFR) at
50 CFR 17.11 (for animals) and 17.12
(for plants). Section 4(c)(2)(A) of the Act
requires us to review each listed
species’ status at least once every 5
years. Our regulations at 50 CFR 424.21
require that we publish a notice in the
Federal Register announcing those
species under active review. For
additional information about 5-year
reviews, go to https://www.fws.gov/
endangered/what-we-do/recoveryoverview.html, scroll down to ‘‘Learn
More about 5-Year Reviews,’’ and click
on our factsheet.
What information do we consider in
our review?
A 5-year review considers all new
information available at the time of the
review. In conducting these reviews, we
consider the best scientific and
commercial data that have become
available since the listing determination
or most recent status review, such as:
(A) Species biology, including but not
limited to population trends,
distribution, abundance, demographics,
and genetics;
(B) Habitat conditions, including but
not limited to amount, distribution, and
suitability;
(C) Conservation measures that have
been implemented that benefit the
species;
(D) Threat status and trends in
relation to the five listing factors (as
defined in section 4(a)(1) of the Act);
and
(E) Other new information, data, or
corrections, including but not limited to
taxonomic or nomenclatural changes,
identification of erroneous information
contained in the List, and improved
analytical methods.
Any new information will be
considered during the 5-year review and
will also be useful in evaluating the
ongoing recovery programs for the
species.
What species are under review?
This notice announces our active 5year status reviews of the species in the
following table.
Animals
asabaliauskas on DSK5VPTVN1PROD with NOTICES
Illinois cave
amphipod.
VerDate Sep<11>2014
Scientific name
Listing
status
Where listed
Gammarus
acherondytes.
Common name
E ..........
Illinois ........................
18:50 Dec 16, 2015
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PO 00000
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Final listing rule
(Federal Register
citation and
publication date)
63 FR 46900; September 3, 1988.
Sfmt 4703
Contact person,
phone, email
Contact person’s
U.S. mail address
Kristin Lundh; Kristin_
Lundh@fws.gov;
309–757–5800,
x215.
USFWS; 1511 47th
Avenue; Moline, IL
61265.
E:\FR\FM\17DEN1.SGM
17DEN1
]]>Agencies
[Federal Register Volume 80, Number 242 (Thursday, December 17, 2015)]
[Notices]
[Pages 78749-78751]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-31766]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5815-N-02]
Statutorily Mandated Designation of Difficult Development Areas
and Qualified Census Tracts: Revision of Effective Date for 2015
Designations
AGENCY: Office of the Assistant Secretary for Policy Development and
Research, HUD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This document revises the effective date for designations of
``Difficult Development Areas'' (DDAs) and ``Qualified Census Tracts''
(QCTs) for purposes of the Low-Income Housing Tax Credit (LIHTC) under
Internal Revenue Code (IRC) Section 42 (26 U.S.C. 42) published on
October 3, 2014 (79 FR 59855). This Notice extends from 365 days to 730
days the period for which the 2015 lists of QCTs and DDAs are effective
for projects located in areas not on the 2016 list of DDAs or QCTs,
published November 24, 2015, at 80 FR 73201, but having submitted
applications while the area was a 2015 QCT or DDA.
FOR FURTHER INFORMATION CONTACT: For questions on how areas are
designated and on geographic definitions, contact Michael K. Hollar,
Senior Economist, Economic Development and Public Finance Division,
Office of Policy Development and Research, Department of Housing and
Urban Development, 451 Seventh Street SW., Room 8234, Washington, DC
20410-6000; telephone number (202) 402-5878, or send an email to
Michael.K.Hollar@hud.gov. For specific legal questions pertaining to
Section 42, contact Branch 5, Office of the Associate Chief Counsel,
Passthroughs and Special Industries, Internal Revenue Service, 1111
Constitution Avenue NW., Washington, DC 20224; telephone number (202)
317-4137, fax number (202) 317-6731. For questions about the ``HUB
Zone'' program, contact Mariana Pardo, Director, HUBZone Program,
Office of Government Contracting and Business Development, U.S. Small
Business Administration, 409 Third Street SW., Suite 8800, Washington,
DC 20416; telephone number (202) 205-2985, fax number (202) 481-6443,
or send an email to hubzone@sba.gov. A text telephone is available for
persons with hearing or speech impairments at 800-877-8339. (These are
not toll-free telephone numbers.) Additional copies of this notice are
available through HUD User at 800-245-2691 for a small fee to cover
duplication and mailing costs.
Copies Available Electronically: This notice and additional
information about DDAs and QCTs are available electronically on the
Internet at https://www.huduser.org/datasets/qct.html.
SUPPLEMENTARY INFORMATION:
This Document
This notice extends from 365 days to 730 days the period for which
the 2015 lists of QCTs and DDAs are effective for projects located in
areas not on the 2016 list of DDAs or QCTs, published November 24,
2015, at 80 FR 73201, but having submitted applications while the area
was a 2015 QCT or DDA for each of the 50 states, the District of
Columbia, Puerto Rico, American Samoa, Guam, the Northern Mariana
Islands, and the U.S. Virgin Islands. The actual designations of 2015
QCTs and DDAs are not affected by this notice. HUD is revising the
effective date of the 2015 QCTs and DDAs at this time to aid the
transition to Small Difficult Development Areas as announced in a
notice designating 2016 QCTs and DDAs published at 80 FR 73201 and
otherwise ensure that LIHTC and bond-financed projects relying on 2015
QCT or DDA designations and not in areas designated as 2016 QCTs and
DDAs, but unable to meet the 365-day requirement of the original
effective date of the 2015 QCT and DDA designations, may still be
completed within 730 days.
The sections entitled ``Effective Date'' and ``Interpretive
Examples of Effective Date'' of the 2015 DDA and QCT designations as
published October 3, 2014 at 79 FR 59855 are hereby revised to read as
follows:
Effective Date
The 2015 lists of QCTs and DDAs are effective:
(1) For allocations of credit after December 31, 2014; or
(2) for purposes of IRC Section 42(h)(4), if the bonds are issued
and the building is placed in service after December 31, 2014.
If an area is not on a subsequent list of DDAs, the 2015 lists are
effective for the area if:
(1) The allocation of credit to an applicant is made no later than
the end of the 730-day period after the applicant submits a complete
application to the LIHTC-allocating agency, and the submission is made
before the effective date of the subsequent lists; or
(2) for purposes of IRC Section 42(h)(4), if:
(a) The bonds are issued or the building is placed in service no
later than the end of the 730-day period after the applicant submits a
complete application to the bond-issuing agency, and
(b) the submission is made before the effective date of the
subsequent lists, provided that both the issuance of the bonds and the
placement in service of the building occur after the application is
submitted.
An application is deemed to be submitted on the date it is filed if
the application is determined to be complete by the credit-allocating
or bond-issuing agency. A ``complete application'' means that no more
than de minimis clarification of the application is required for the
agency to make a decision about the allocation of tax credits or
issuance of bonds requested in the application.
In the case of a ``multiphase project,'' the DDA or QCT status of
the site of the project that applies for all phases of the project is
that which applied when the project received its first allocation of
LIHTC. For purposes of IRC Section 42(h)(4), the DDA or QCT status of
the site of the project that applies for all phases of the project is
that which applied when the first of the following occurred: (a) The
building(s) in the first phase were placed in service, or (b) the bonds
were issued.
For purposes of this notice, a ``multiphase project'' is defined as
a set of buildings to be constructed or rehabilitated under the rules
of the LIHTC and meeting the following criteria:
(1) The multiphase composition of the project (i.e., total number
of buildings and phases in project, with a description of how many
buildings are to be built in each phase and when each phase is to be
completed, and any other information required by the agency) is made
known by the applicant in the first application of credit for any
building in the project, and that applicant identifies the buildings in
the project for which credit is (or will be) sought;
[[Page 78750]]
(2) The aggregate amount of LIHTC applied for on behalf of, or that
would eventually be allocated to, the buildings on the site exceeds the
one-year limitation on credits per applicant, as defined in the
Qualified Allocation Plan (QAP) of the LIHTC-allocating agency, or the
annual per-capita credit authority of the LIHTC allocating agency, and
is the reason the applicant must request multiple allocations over 2 or
more years; and
(3) All applications for LIHTC for buildings on the site are made
in immediately consecutive years.
Members of the public are hereby reminded that the Secretary of
Housing and Urban Development, or the Secretary's designee, has legal
authority to designate DDAs and QCTs, by publishing lists of geographic
entities as defined by, in the case of DDAs, the Census Bureau, the
several states and the governments of the insular areas of the United
States and, in the case of QCTs, by the Census Bureau; and to establish
the effective dates of such lists. The Secretary of the Treasury,
through the IRS thereof, has sole legal authority to interpret, and to
determine and enforce compliance with the IRC and associated
regulations, including Federal Register notices published by HUD for
purposes of designating DDAs and QCTs. Representations made by any
other entity as to the content of HUD notices designating DDAs and QCTs
that do not precisely match the language published by HUD should not be
relied upon by taxpayers in determining what actions are necessary to
comply with HUD notices.
Interpretive Examples of Effective Date
For the convenience of readers of this notice, interpretive
examples are provided below to illustrate the consequences of the
effective date in areas that gain or lose DDA status. The examples
covering DDAs are equally applicable to QCT designations.
(Case A) Project A is located in a 2015 DDA that is NOT a
designated DDA in 2016 or 2017. A complete application for tax credits
for Project A is filed with the allocating agency on November 15, 2015.
Credits are allocated to Project A on October 30, 2017. Project A is
eligible for the increase in basis accorded a project in a 2015 DDA
because the application was filed BEFORE January 1, 2016 (the effective
date for the 2016 DDA lists), and because tax credits were allocated no
later than the end of the 730-day period after the filing of the
complete application for an allocation of tax credits.
(Case B) Project B is located in a 2015 DDA that is NOT a
designated DDA in 2016, 2017, or 2018. A complete application for tax
credits for Project B is filed with the allocating agency on December
1, 2015. Credits are allocated to Project B on March 30, 2018. Project
B is NOT eligible for the increase in basis accorded a project in a
2015 DDA because, although the application for an allocation of tax
credits was filed BEFORE January 1, 2016 (the effective date of the
2016 DDA lists), the tax credits were allocated later than the end of
the 730-day period after the filing of the complete application.
(Case C) Project C is located in a 2015 DDA that was not a DDA in
2014. Project C was placed in service on November 15, 2014. A complete
application for tax-exempt bond financing for Project C is filed with
the bond-issuing agency on January 15, 2015. The bonds that will
support the permanent financing of Project C are issued on September
30, 2015. Project C is NOT eligible for the increase in basis otherwise
accorded a project in a 2015 DDA, because the project was placed in
service BEFORE January 1, 2015.
(Case D) Project D is located in an area that is a DDA in 2015, but
is NOT a DDA in 2016, 2017, or 2018. A complete application for tax-
exempt bond financing for Project D is filed with the bond-issuing
agency on October 30, 2015. Bonds are issued for Project D on April 30,
2017, but Project D is not placed in service until January 30, 2018.
Project D is eligible for the increase in basis available to projects
located in 2015 DDAs because: (1) One of the two events necessary for
triggering the effective date for buildings described in Section
42(h)(4)(B) of the IRC (the two events being bonds issued and buildings
placed in service) took place on April 30, 2017, within the 730-day
period after a complete application for tax-exempt bond financing was
filed, (2) the application was filed during a time when the location of
Project D was in a DDA, and (3) both the issuance of the bonds and
placement in service of Project D occurred after the application was
submitted.
(Case E) Project E is a multiphase project located in a 2015 DDA
that is NOT a designated DDA in 2016. The first phase of Project E
received an allocation of credits in 2015, pursuant to an application
filed March 15, 2015, which describes the multiphase composition of the
project. An application for tax credits for the second phase Project E
is filed with the allocating agency by the same entity on March 15,
2016. The second phase of Project E is located on a contiguous site.
Credits are allocated to the second phase of Project E on October 30,
2016. The aggregate amount of credits allocated to the two phases of
Project E exceeds the amount of credits that may be allocated to an
applicant in one year under the allocating agency's QAP and is the
reason that applications were made in multiple phases. The second phase
of Project E is, therefore, eligible for the increase in basis accorded
a project in a 2015 DDA, because it meets all of the conditions to be a
part of a multiphase project.
(Case F) Project F is a multiphase project located in a 2015 DDA
that is NOT a designated DDA in 2016. The first phase of Project F
received an allocation of credits in 2015, pursuant to an application
filed March 15, 2015, which does not describe the multiphase
composition of the project. An application for tax credits for the
second phase of Project F is filed with the allocating agency by the
same entity on March 15, 2017. Credits are allocated to the second
phase of Project F on October 30, 2017. The aggregate amount of credits
allocated to the two phases of Project F exceeds the amount of credits
that may be allocated to an applicant in one year under the allocating
agency's QAP. The second phase of Project F is, therefore, NOT eligible
for the increase in basis accorded a project in a 2015 DDA, since it
does not meet all of the conditions for a multiphase project, as
defined in this notice. The original application for credits for the
first phase did not describe the multiphase composition of the project.
Also, the application for credits for the second phase of Project F was
not made in the year immediately following the first phase application
year.
Findings and Certifications
Environmental Impact
This notice involves the establishment of fiscal requirements or
procedures that are related to rate and cost determinations and do not
constitute a development decision affecting the physical condition of
specific project areas or building sites. Accordingly, under 40 CFR
1508.4 of the regulations of the Council on Environmental Quality and
24 CFR 50.19(c)(6) of HUD's regulations, this notice is categorically
excluded from environmental review under the National Environmental
Policy Act of 1969 (42 U.S.C. 4321).
Federalism Impact
Executive Order 13132 (entitled ``Federalism'') prohibits an agency
from publishing any policy document that
[[Page 78751]]
has federalism implications if the document either imposes substantial
direct compliance costs on state and local governments and is not
required by statute, or the document preempts state law, unless the
agency meets the consultation and funding requirements of section 6 of
the executive order. This notice merely designates DDAs as required
under IRC Section 42, as amended, for the use by political subdivisions
of the states in allocating the LIHTC. This notice also details the
technical method used in making such designations. As a result, this
notice is not subject to review under the order.
Dated: December 10, 2015.
Katherine M. O'Regan,
Assistant Secretary for Policy Development and Research.
[FR Doc. 2015-31766 Filed 12-16-15; 8:45 am]
BILLING CODE 4210-67-P
