Low Income Housing Tax Credit Exchange Program, “Tax Credit Exchange” or TCEP

State tax credit agencies (generally Housing Finance Agencies, HFAs) can exchange 2008 and 2009 "9% tax credits" for a grant: 100% of a state's unused and returned 2008 tax credits can be exchanged, and 40% of a state's new 2009 tax credits can be exchanged.  States will award funds to projects based on their QAPs (Qualified Allocation Plans).  

Assistance to a project can be a grant or a loan.  Grants can assist non-LIHTC projects that meet LIHTC income, rent, and use restriction requirements.  The exchange grant to a state will equal $0.85 for every $1.00 of tax credit, multiplied by 10. Grants must be used by January 1, 2011. The Treasury Department, not HUD, will run the “Exchange” program.

Treasury Department’s Exchange webpage, www.treas.gov/recovery/LIH-grants.shtml

HUD's TCAP webpage, http://portal.hud.gov/portal/page?_pageid=153,7973386&_dad=portal&_schema=PORTAL

National Housing Trust

Citizens' Housing and Planning Association ,
 http://www.chapa.org/

California Housing Partnership, Community Economics Inc., Enterprise Community Partners, LISC 
Affordable Rental Housing A.C.T.I.O.N. proposals to extend TCEP http://www.rentalhousingaction.org/about-action/the-proposals.

Novogradac & Company, a national consulting firm that works in the fields of affordable housing, community development, and renewable energy maintains an Exchange program website, www.novoco.com/low_income_housing/news/hot_topics/recovery.php

Fair Housing
Tax Credit Exchange Program Section of the ARRA Statute, http://www.nlihc.org/doc/Exchange-Program.pdf