(a) This qualified allocation plan (plan or QAP) is adopted by the New York State Housing Finance Agency (agency or HFA) pursuant to section 42 of the Internal Revenue Code of 1986, as amended (IRC), and the Treasury Regulations, Revenue Rulings and Procedures, and other publications of the Internal Revenue Service (service or IRS) with binding authority applicable thereunder (collectively, the code), to govern the allocation or allowance by the agency of any low income housing tax credit (LIHTC) under IRC section 42. This plan shall apply to:

1. (1) the allowance by the agency of LIHTC to projects financed by obligations subject to the private activity bond cap, the interest on which is exempt from Federal income tax, as provided in IRC section 42(h)(4); and
2. (2) any allocation of LIHTC to the agency by as a sub-allocating agency designated by the New York State Division of Housing and Community Renewal under authority granted by Part 2040 of Title 9 of the New York Codes, Rules and Regulations. In addition, pursuant to IRC section 42(m)(1)(B)(iii) and treasury regulation 1.42-5, this plan provides certain procedures that the agency shall follow in monitoring for noncompliance with the code and for notifying the IRS thereof.

(b) HFA is generally involved in two kinds of LIHTC projects:

1. (1) projects receiving tax exempt bond financing from the agency; or
2. (2) projects receiving tax exempt bond financing from another issuer, subject to the private activity bond volume cap provisions contained in section 146 of the code, and accordingly may be eligible for so called “Private Activity Bond Credits”, “As of Right” or “4% Credits” if the project complies with the applicable requirements of this QAP.