2027 Qualified Allocation Plan (QAP) Draft: Public Comment Period Open
Oregon Housing and Community Services (OHCS), is seeking public comment for a proposed update to the QAP. The final QAP will be published in December, incorporating updates based on feedback from partners. This proposed update includes changes to the 9% Low-Income Housing Tax Credit (LIHTC) funding rounds for the 2027 and 2028 cycles.
The most significant proposed change to the QAP is that the 2027 9% LIHTC competitive round would prioritize preservation projects exclusively. The 2028 round would prioritize new construction projects. Proposed changes also include an increase to the per project 9% LIHTC cap, enhanced accessibility standards, and lower Private Activity Bond (PAB) requirement from 55% to 30%. You are invited to review the
redline draft of the QAP.
How to submit public comment
All interested parties are invited to submit comments about the Qualified Allocation Plan. Comments will be accepted through 5 p.m. PST, October 25, 2026. A
virtual public hearing will be held at 2 p.m. PST on October 12, 2026.
You may submit written comments to OHCS by emailing HCS.QAP@hcs.oregon.gov with QAP Public Comment in the subject line. Please include your name, organization you represent, section/page/line number in question, and input in the body of the email. OHCS will review and consider all feedback and public comments submitted during the public comment period. All comments and responses will be included as an appendix in the final QAP.
The Qualified Allocation Plan (QAP) is updated every other year and describes OHCS’ priorities for how
Low-Income Housing Tax Credits (LIHTC) will be used. The QAP is one of the key areas where Oregon can tailor the program to address state and local goals.
Oregon’s allocation plan provides both a competitive and non-competitive process for awarding tax credits to developments that address the state’s low-income housing needs. The plan also includes other selection criteria, such as resident services, site amenities and unmet housing needs.
Federal regulations require at least 10 percent of a state’s tax credits be set-aside for qualified nonprofit organizations that are tax-exempt under Section 501 (c)(3) or 501 (c)(4) of the Internal Revenue Code. Providing low-income housing must be one of the organizational purposes of the qualified organization, and among other things, must also have ownership and materially participate in the construction and management of the development during the applicable compliance period.
2025 State of Oregon QAP
2025 State of Oregon QAP redline version
Market Study
Applicants must submit a complete market analysis before receiving a 9% LIHTC or 4% LIHTC allocation. The deadline for submission will be established within the Financial Eligibility step of the ORCA process for projects selected for funding. Applicants should read and refer to the
LIHTC Market Analysis Guidelines for a full description of OHCS policies and guidelines. Selected projects must use
approved OHCS Market Analysts as required in code at IRC §42(m)(1)(A)(iii).
Basis boost
Housing finance agencies like OHCS can provide up to a 30% "basis boost" for certain LIHTC projects, which translates to an increase in the amount of tax credits (and therefore equity) that developers receive.
Some projects have always been available for a basis boost, including those located in "Difficult Development Areas," (DDA) where construction, land, and utility costs are high relative to the area median income and "Qualified Census Tracts," (QCT) in which 50% or more of the households have incomes below 60% of the area median income or the poverty rate is 25% or more. More resources and latest updates around the basis boost are listed below.