The American Recovery and Reinvestment Act(ARRA)

TCAP and Exchange (1602) Program Information and Important Dates

• Transparency Mississippi
• HTC Program Bulletin #2009-06 - ARRA Programs and Important Dates
• Executive Summary
• Exchange(1602) Loan Application
• Environmental Review Document Guidance

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The Internal Revenue Service (IRS) and the Department of Housing and Urban Development (HUD) have released guidance regarding both the Tax Credit Assistance Pool (TCAP) and the Tax Credit Exchange Program.

• HUD Guidance on TCAP
• IRS Guidance on Exchange Program
• Fair Housing Presentation(HUD)
• Early and Final Floodplain/Wetland Notices Sample
• HUD Environmental Assessment Form
• Environmental Statutory Checklist Review Items
• CE Subject to 58.5 Form
• 24 CFR 58.6 Form

MHC is in the process of reviewing the guidance and developing guidelines for both programs.

The American Recovery and Reinvestment Act (ARRA) contains two provisions meant to spur the Housing Tax Credit (HTC) program, administered by the Mississippi Home Corporation (MHC): The Tax Credit Assistance Pool (TCAP) and the Tax Credit Exchange Program.

Housing Tax Credit Program Overview

The Internal Revenue Service allocates Housing Tax Credits through Section 42 of the IRS Code to MHC to provide gap financing to affordable rental housing developments. MHC awards tax credits to developers in a competitive process; developers then sell the tax credits to investors. The funds raised by the sale of the credits make up the difference between the cost of building market-rate units while charging affordable rents. In exchange for receiving tax credits, developers limit occupancy to families at or below 60% of the area median income. MHC monitors developments for compliance for 15 to 30 years after they are placed in service.

The ongoing credit crisis caused a steep drop in the price investors paid for tax credits. The two ARRA provisions seek to make up for this loss in equity until the markets return to normal.

Download Program Overview(PDF)

For specific questions related to MHC's administration of the two ARRA provisions, contact:

David Hancock
601-718-4642