What is a Qualified Allocation Plan (QAP) in the context of LIHTC?

A Qualified Allocation Plan (QAP) is a critical document used in the Low-Income Housing Tax Credit (LIHTC) program. It outlines how a state’s housing agency will allocate the tax credits to developers. The QAP establishes the criteria and priorities for selecting projects, ensuring that the allocation of tax credits aligns with the state’s housing goals and needs. This plan must be developed in accordance with federal requirements and is typically updated annually.

QAPs include various factors such as project location, the type of housing being developed, the income levels of tenants the projects will serve, and other priorities that the state may have. This framework not only helps to ensure that the credits are distributed effectively but also promotes transparency and accountability in the allocation process.

In contrast, other options do not accurately capture the purpose of a QAP. Guidelines for tenants on applying for housing focus on user access rather than the allocation of tax credits, a budget plan relates to financial management rather than policy framework, and a report on completed projects does not pertain to the allocation process itself. Thus, the first option accurately describes the essence of a Qualified Allocation Plan within the LIHTC context.