Novogradac Releases New Tool to Estimate Likelihood of QCT Status

Estimator Can Help Developers Know Prospect of Basis Boost to Aid in LIHTC Planning

SAN FRANCISCO, June 24, 2026 /PRNewswire/ -- Affordable housing developers and investors can now get a preview of which census tracts will likely be designated as qualified census tracts (QCTs) by the U.S. Department of Housing and Urban Development (HUD), thanks to a new tool from Novogradac.

The Novogradac Qualified Census Tract Estimator will provide insight into which census tracts will be eligible for the 30% basis boost available for properties financed by low-income housing tax credits (LIHTCs), whether 9% allocated credits or 4% credits that pair with private activity bonds (PABs) to finance affordable rental housing.

"The 30% basis boost can play a significant role in closing the financing gap for private activity bond-financed tax credit housing developments, which means developers who have a good indication as to whether their property will be in a QCT or is at risk of losing such status can make better-informed development decisions," said Michael J. Novogradac, CPA, managing partner of Novogradac. "This tool complements other Novogradac forward-looking resources, like the Novogradac Rent and Income Limits Estimator, and reflects our commitment to providing the affordable housing development community tools to build and renovate affordable rental housing across America."

The tool allows developers to estimate whether an area will retain, lose or gain status as a QCT, informing decisions on submitting an application to preserve the basis boost. The QCT tool also provides information on whether a currently nonqualified area may receive a boost in future years and what factors determined whether or not the census tract was eligible for the boost.

"Our clients often ask whether there's any way to have advance insight into whether their properties will be in a QCT," said Thomas Stagg, CPA, the Novogradac partner who headed up the development of the tool. "By offering this, we're adding to the universe of information that goes into making decisions on affordable housing properties. We expect that this will help developers as they address financial issues early."

HUD generally announces the QCTs and difficult development areas (DDAs) in September or October. A QCT is an area where at least half the households have incomes of less than 60% of the area median income or a poverty rate at or greater than 25%. QCTs may not exceed 20% of the population of any metropolitan statistical area (MSA) or non-MSA part of a state.

The estimator is available for purchase through the Novogradac website for a specific area, a state or the full data set, with prices starting at $500.

About Novogradac

Novogradac, which has been in business for nearly 36 years, has grown to more than 1,000 employees and partners with offices in more than 25 cities. Tax, audit and consulting specialty practice areas for Novogradac include affordable housing, community development, historic rehabilitation, opportunity zones and renewable energy. For additional information on Novogradac's personnel and areas of expertise, visit www.novoco.com or call (415) 356-8000.

SOURCE Novogradac & Company LLP