Section 1602 - Tax Credit Exchange

Under Section 1602 of the American Recovery and Reinvestment Tax Act of 2009 (Section 1602), State housing credit agencies are eligible to receive Section 1602 Grants to States for Low-income Housing Projects in Lieu of Low-income Housing Credits under section 42 of the Internal Revenue Code (the Code) for 2009.

The purpose of the Recovery Act is to preserve and create jobs and promote economic recovery in the near term and to invest in infrastructure that will provide long-term economic benefits.

Section 1602 appropriates funds for grants to States to finance construction or acquisition and rehabilitation of qualified low-income building for low-income housing in lieu of low-income housing tax credits. Treasury will award Section 1602 grants to State housing credit agencies in an amount equal to their low-income housing grant election amount. OHFA will be evaluating how much and when these tax credits will be exchanged for grants.

ARRA Application and Instructions

ARRA Questions and Answers #2 (from questions received as of 7/17/09) (released 7/21/09)

ARRA Questions and Answers (from questions received as of 7/8/09) (released 7/14/09)

NCSHA's Recommended Principles in State TCAP and Exchange Program Administration

U.S. Treasury Dept’s Q&A for the Section 1602 Exchange Program (released 7/9/09) 

OHFA’s Application to the Treasury for Exchange funding (coming soon)

Tracking and Reporting (coming soon)

Other Helpful Resources:
IRS website

IRS Exchange website

OHFA's Exchange Program Executive Summary

NCSHA's Exchange Program Summary (released 5/5/09)

 

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