2026 4% Round Q&A

Q&A will be posted weekly on Fridays during the round. New questions are shown in bold text.

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QAP Section 1.3 – Developer Cap

1.3 - Developer Cap
QuestionAnswer
Are Developers able to submit more than one 4% Tax Credit Application or does IFA make the determination about submission eligibility prior to the Submission Due Date?Per Section 1.3 of the QAP, Developers may always submit more than one application in the 4% round but would be limited to one award if IFA is oversubscribed on Bond Cap requests. Developers must have a corresponding Bond Inducement Resolution for each planned Tax Credit Application.
A Developer planning to submit more than one Tax Credit Application in the 4% round would either be able to choose prior to submitting the Tax Credit Application to only submit one Tax Credit Application or to submit multiple Tax Credit Applications, recognizing that only the highest scoring Project, if any, would be awarded.
If necessary, tiebreakers as set forth in Section 6.3 of the QAP will be applied to the round prior to applying the Developer Cap.
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QAP Section 2.1 - Tax Credit Reservation and Bond Inducement Schedule

2.1 - Tax Credit Reservation and Bond Inducement Schedule
QuestionAnswer
Is there a deadline to start construction that developers need to keep in mind if awarded a 4% Project in 2026?Per QAP Sections 1.2 and 2.1, all 2026 4% Projects must close on their bond issuance in calendar year 2027 and the final day that IFA will accept Volume Cap Applications is November 1, 2027. You are correct that if a Project has not closed using their bond issuance by December 24, 2027, their bond allocation is no longer valid.
Note that per QAP Section 2.1, IFA also requires that all buildings in 4% Projects be placed in service no later than 24 months after their Bond Issuance Date, which is variable for each project.
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QAP Section 3.4.A - Zoning

3.4.A - Zoning
QuestionAnswer
Does proper zoning need to be in place for the Project's Bond Inducement Resolution application or by August 5th for the Tax Credit Application?  QAP section 3.4.A states that the current zoning at the time of Application submission will permit the proposed project.  This is referring to the 4% LIHTC application that is due August 5, 2026.
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QAP Section 3.4.D - Detrimental Site Characteristics

3.4.D - Detrimental Site Characteristics
QuestionAnswer
Does IFA regard sites protected by a levee as a detrimental condition?A site that is protected by a Levee (Zone X) does not fall under the Detrimental Site Characteristic category. Only sites that are located within a flood hazard area, 100-year flood zone or a 500-year flood zone would fall into this category. It is still important to note this flood zone feature in the application so it is recorded as a site characteristic, but it would not be counted as detrimental to the project.
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QAP Section 3.5.C - Community Service Facility

3.5.C - Community Service Facility
QuestionAnswer
What are IFA's requirements if a 4% Project is including a Community Service Facility?The Market Study must include the proposed Community Service Facility, and the Tax Credit Application must demonstrate the purpose and the use of the Community Service Facility, as well as a completed Exhibit 18T.
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QAP Section 5.1.A.3 and 5.1.C.4

5.1.A.3 and 5.1.C.4
QuestionAnswer
In Sections 5.1.A.3 and 5.1.C.4, can you clarify what cross cutting is referring to?If you have a federal funding source that would require federal cross cutting measures like an environmental review, Davis Bacon, or similar, the project would not be eligible for points under those sections in the QAP. Applicants are responsible for understanding the requirements of their federal funding sources.
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QAP Section 5.2.A - Disaster Recovery

5.2.A - Disaster Recovery
QuestionAnswer
Can you clarify the number of points available for Disaster Recovery?Communities are eligible for disaster recovery points as listed in the Appendix.
There are no communities eligible for 5 points under Disaster Recovery in 2026.
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QAP Section 5.4.A - Tax Credit Performance

5.4.A - Tax Credit Performance
QuestionAnswer
Is IFA's intent in adding the dates to 5.4.A that 4% projects are placed-in-service 24 months from the Tax Credit Reservation?IFA's expectation is that 4% projects are placed-in-service no later than 24 months after the initial bond issuance (See QAP Section 2.1). Language was added to clarify when IFA considers a project open (from Reservation through 8609) and to clarify that if the event that a project receives multiple bond issuances, IFA will use the initial bond issuance date to calculate these points. Initial bond issuance typically coincides with construction loan closing.
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QAP Section 9.4.D - Energy Requirements

9.4.D - Energy Requirements
QuestionAnswer
What are the requirements for NGBS certification for Projects for the initial application submission?The only thing IFA needs at the time of the initial application review for the energy requirements is to confirm that the energy consultant is NGBS certified. We do not expect for the project to be registered until after the project is awarded, at the time the initial construction package is being reviewed.
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QAP Section 9.5 - Minimum Development Characteristics - New Construction and Adaptive Reuse

9.5 - Minimum Development Characteristics - New Construction and Adaptive Reuse
QuestionAnswer
In a new construction project containing townhome units where all townhome units are two-story units, would IFA require a wheelchair lift for a unit to be considered fully accessible when the ground floor has a fully accessible kitchen, bedroom, bathroom, and laundry?It is IFA’s policy that all sections of a Fully Accessible unit should be on an accessible route and usable by persons with mobility disabilities. A wheelchair lift would be a sufficient solution to provide access to a unit’s second-floor space but IFA’s preference for new construction projects is to design Fully Accessible units without stairs.
For Adaptive Reuse projects with existing structure constraints, how does IFA approach the minimum development characteristic requirements?Per Section 9.4 of the QAP, projects using Historic Tax Credits may request exceptions to the QAP when recommended by SHPO. If such a recommendation has been made, IFA requires documentation of that recommendation before the Tax Credit Application can be submitted as the application system may need an override to allow design exceptions to proceed.
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