The Qualified Allocation Plan

The low income housing tax credit is established under Section 42 of the Internal Revenue

Code of 1986. The credit is a federal income tax credit for Owners of qualifying rental housing which meets certain low income occupancy and rent limitation requirements.

Congress established the Low Income Housing Tax Credit program by enactment of the Tax Reform Act of 1986. Montana Board of Housing (MBOH) implemented and began administering the Low Income Housing Tax Credit program in 1987 in the State of Montana. Since then, the program has assisted in providing for the retention, rehabilitation and construction of rental housing for low income individuals and families for over 6,000 units throughout Montana.

The Omnibus Budget Reconciliation Act of 1989 required the appropriate administering agencies, e.g., MBOH to allocate credits pursuant to a Qualified Allocation Plan (QAP) which sets forth the priorities, considerations, criteria and process for making allocations to projects in Montana. The Omnibus Budget Reconciliation Act of 1993 provided a permanent extension for the Low Income Housing Tax Credit.

Montana Board of Housing is the state agency that allocates the tax credits for housing located in Montana. The per state resident amount of tax credit allocated annually for housing is currently limited to $2.30 with a minimum cap as allocated by IRS, whichever is larger. The current allocation of Tax Credits plus any inflation factor the IRS may calculate is posted to the MBOH annually. Montana receives the minimum cap because of its population.

An Owner must obtain a credit Allocation from MBOH before claiming the tax credit.

This QAP is intended to ensure the selection of those developments which best meet the most pressing housing needs of low income people within the State of Montana in accordance with the guidelines and requirements established by the federal government and the requirements, considerations, factors, limitations, criteria and priorities established by the MBOH Board.

The Application Process

The Montana Board of Housing requires that developers submit a Letter of Intent (LOI) and be invited to join the  group who will be allowed to submit full applications.  This requirement was installed when the number of Housing Credit applications grew to a point that the staff could no longer manage the competitive selection process with full applications.  The LOI allows the board to look at projects that best fits the need that they are asked to fill across Montana.  The Board considers details such as:  rural or urban, who is served, will the Housing Credits be used most efficiently and will they do the most good possible, etc.  Please call 406.841.2845 with any questions you may have.


QAP Documents

Use the appropriate Qualified Allocation Plan, with the corresponding forms and attachments, to guide your Housing Credits application.  Call 406.841.2840 with any questions or problems you may have.

Letter of Intent Documents

Letter of Intent Narrative  

Letter of Intent Attachment   (updated:  March 8, 2019)

Market Study Requirements

Funding Portal (Click here for electronic submission - Letter of Intent Attachment MUST be uploaded in Excel form)

If you have questions, call 406-841-2840.


301 S. PARK AVE, STE 240 | PO BOX 200528 | HELENA, MT 59620-0528 | P: 406.841.2840 | F: 406.841.2841 | TDD: 406.841.2702 | TOLL FREE: 800.761.6264