The Tax Credit Assistance Program (TCAP) is a Federal housing grant program administered by HUD which assists Low Income Housing Tax Credit (LIHTC) projects funded during 2007, 2008 and 2009. The TCAP program is part of the American Recovery and Reinvestment Act which was signed by President Obama on February 17, 2009. The program is designed to assist troubled LIHTC deals struggling to find a tax credit investor.
As a result of the faltering economy and financial markets, the value of Low Income Housing Tax Credits plummeted in 2008 and continued to decline during 2009. Most LIHTC deals struggle to find investors. The TCAP program provides supplemental grant funds to make the project feasible.
Administration of the TCAP funds at the Federal level occurs at HUD. HUD then delegates administration of the program on the state level to the designated housing finance agency charged with administering the LIHTC program. HUD established the basic requirements of the program and the state housing finance agencies established more specific qualification and award criteria.
State TCAP $ Alaska $5,490,631 Alabama $31,952,086 Arkansas $20,463,053 Arizona $32,308,066 California $325,877,114 Colorado $27,349,670 Connecticut $26,170,888 District Of Columbia $11,644,346 Delaware $6,608,893 Florida $101,134,952 Georgia $54,481,680 Hawaii $9,861,610 Iowa $18,978,542 Idaho $8,753,622 Illinois $94,676,979 Indiana $38,048,333 Kansas $17,121,110 Kentucky $31,616,176 Louisiana $39,383,397 Massachusetts $59,605,630 Maryland $31,701,696 Maine $10,690,750 Michigan $63,974,711 Minnesota $28,434,123 Missouri $38,687,026 Mississippi $21,881,803 Montana $7,818,360 North Carolina $52,152,687 North Dakota $4,860,574 Nebraska $11,380,566 New Hampshire $8,269,787 New Jersey $61,243,670 New Mexico $13,876,558 Nevada $15,184,795 New York $252,659,616 Ohio $83,484,547 Oklahoma $25,723,568 Oregon $27,343,971 Pennsylvania $95,050,396 Puerto Rico $42,646,082 Rhode Island $11,933,403 South Carolina $25,384,973 South Dakota $5,405,055 Tennessee $39,032,515 Texas $148,354,769 Utah $11,639,074 Virginia $44,247,749 Vermont $5,416,546 Washington $43,010,192 Wisconsin $35,594,904 West Virginia $16,541,848 Wyoming $4,846,908 Total $2,250,000,000 Source: HUD
See also Tax Credit Assistance Program (TCAP), Official HUD TCAP Page "HUD Issues Tax Credit Assistance Program (TCAP) guidance", Nixon Peabody, May 5, 2009