The U.S. Department of Housing and Urban Development (HUD) designated difficult development areas (DDAs) for 2012 for purposes of the low-income housing tax credit (LIHTC) under Section 42 of the Internal Revenue Code (IRC).
HUD makes new DDA designations annually. LIHTC projects in DDAs or QCTs are eligible for as much as 30 percent more LIHTC subsidy than projects not located in DDAs or QCTs. The designations of qualified census tracts (QCTs) under IRC Section 42 published October 6, 2009, will still be in effect.
In addition to announcing the 2012 DDA designations, HUD invited public comment on whether it should use Small Area Fair Market Rents (FMRs), rather than metropolitan-area FMRs, in future designations of metropolitan DDAs. Comments on this proposal and the 2012 DDAs will be accepted through December 27, 2011.