Statutorily Mandated Designation of Difficult Development Areas and Qualified Census Tracts for 2027
This HUD notice designates the 2027 Difficult Development Areas (DDAs) and Qualified Census Tracts (QCTs) used to determine eligibility for increased Low-Income Housing Tax Credit (LIHTC) basis. It explains the data and methodology HUD uses to identify these areas based on 2020 Census data, FY 2026 income limits and Fair Market Rents, and ACS income/poverty data. The 2027 lists take effect for credit allocations or bond-financed projects after December 31, 2026, which matters for housing agencies and developers applying for LIHTC allocations in designated high-cost or low-income areas.