Qualified Contract Process Summary

Tax Credit developments allocated federal low income housing tax credits (LIHTCs) in year 1990 and thereafter will be eligible to make a qualified contract request to NIFA in 2005 and beyond. This can occur, at the Development Owner’s election, any time after year 14 in a 30 year Land Use Restriction Agreement (extended use agreement or “LURA”) or after year 29 in a 45 year LURA.

If a Development Owner desires to sell the property under the qualified contract process such Development Owner must notify NIFA using the process outlined below. Once complete and proper notice has been received, NIFA has one year to find a buyer for the project at a pre-determined price, not to exceed the “Qualified Contract Price” (QCP). The qualified purchaser may be a non-profit or for-profit entity that agrees to maintain the affordable housing units and fulfill all requirements of the LURA for the remainder of the extended use period.

A list of developments with option years is posted on NIFA’s website. See Developments Currently Eligible for a Qualified Contract RequestDevelopment Owners who believe the development they own is eligible for the option year should contact NIFA.

Development Owners who elect to exercise their qualified contract process must complete the forms linked on this page and provide all required due diligence documentation listed therein. 

NIFA's Role

Upon receipt of a Development Owner's request to exercise its option year (Notification Letter and Qualified Contract Price Form and Worksheets), NIFA staff will proceed as follows:

Qualified Contract Materials

In order for NIFA to assist in making information available to potential purchasers of affordable housing properties, the Development Owner must cooperate in such effort and is responsible for providing certain information. At a minimum, the Development Owner must provide the following to NIFA:

Development Owner Responsibilities/Certifications and Commitment

Development Owner Responsibilities

In addition to the above, the Development Owner must agree to the following requirements:

Three-Year Period

LIHTC Developments for Sale Under Qualified Contract