[Federal Register Volume 68, Number 244 (Friday, December 19, 2003)]
[Notices]
[Pages 70982-70994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-31268]



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Part VI





Department of Housing and Urban Development





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Statutorily Mandated Designation of Difficult Development Areas and 
Qualified Census Tracts for Section 42 of the Internal Revenue Code of 
1986; Notice

  Federal Register / Vol. 68, No. 244 / Friday, December 19, 2003 / 
Notices  

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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4889-N-01]


Statutorily Mandated Designation of Difficult Development Areas 
and Qualified Census Tracts for Section 42 of the Internal Revenue Code 
of 1986

AGENCY: Office of the Secretary, HUD.

ACTION: Notice.

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SUMMARY: This document designates ``Difficult Development Areas'' and 
``Qualified Census Tracts'' for purposes of the Low-Income Housing Tax 
Credit (LIHTC) under section 42 of the Internal Revenue Code of 1986 
(the Code). The United States Department of Housing and Urban 
Development (HUD) makes new Difficult Development Area designations 
annually and makes Qualified Census Tract Designations at this time due 
to the recent release of relevant data from the 2000 Census.

FOR FURTHER INFORMATION CONTACT: For questions on how areas are 
designated and on geographic definitions: Kurt G. Usowski, Associate 
Deputy Assistant Secretary for Economic Affairs, Office of Policy 
Development and Research, Department of Housing and Urban Development, 
451 Seventh Street, SW., Washington, DC 20410-6000, telephone (202) 
708-2770, e-mail [email protected]. For specific legal 
questions pertaining to section 42: Office of the Associate Chief 
Counsel, Passthroughs & Special Industries, Internal Revenue Service, 
1111 Constitution Avenue, NW.; Washington, DC 20224, telephone (202) 
622-3040, fax (202) 622-4753. For questions about the ``HUBZones'' 
program: Michael P. McHale, Assistant Administrator for Procurement 
Policy, Office of Government Contracting, Suite 8800, Small Business 
Administration, 409 Third Street, SW., Washington, DC 20416, telephone 
(202) 205-8885, fax (202) 205-7167, e-mail [email protected]. A text 
telephone is available for persons with hearing or speech impairments 
at (202) 708-9300. (These are not toll-free telephone numbers.) 
Additional copies of this notice are available through HUD User at 
(800) 245-2691 for a small fee to cover duplication and mailing costs.
    Copies Available Electronically: This notice and additional 
information about Difficult Development Areas and Qualified Census 
Tracts are available electronically on the Internet (World Wide Web) at 
http://www.huduser.org/datasets/qct.html.

SUPPLEMENTARY INFORMATION: 

This Document

    The designations of Difficult Development Areas in this notice are 
based on fiscal year (FY) 2003 Fair Market Rents (FMRs), FY 2003 income 
limits, and 2000 Census population counts as explained below. This 
notice designates Difficult Development Areas for each of the 50 
states, the District of Columbia, Puerto Rico, American Samoa, Guam, 
the Northern Mariana Islands, and the Virgin Islands. The designations 
of Qualified Census Tracts in this notice are based on 2000 Census 
data. This notice designates Qualified Census Tracts for American 
Samoa, Guam, and the Northern Mariana Islands. The 2003 Qualified 
Census Tracts designated for the 50 states, the District of Columbia, 
Puerto Rico, and the Virgin Islands published December 12, 2002, at 67 
FR 76452 are unchanged by this notice.

2000 Census

    Data from the 2000 Census on total population of metropolitan areas 
and nonmetropolitan counties are used in the designation of Difficult 
Development Areas. The Census Bureau has recently released the data 
needed to update Qualified Census Tract designations for American 
Samoa, Guam, and the Northern Mariana Islands, so this notice makes new 
qualified Census Tract designations in these areas based on 2000 Census 
data. The Office of Management and Budget (OMB) published new 
metropolitan area definitions incorporating 2000 Census data in OMB 
Bulletin No. 03-04 on June 6, 2003. The Census Bureau has not yet 
released official data on 1999 median incomes in the newly defined 
metropolitan areas and nonmetropolitan areas of states. Also, the FY 
2003 FMRs and 2003 income limits used to designate Difficult 
Development Areas are based on the Metropolitan Statistical Areas (MSA) 
and Primary Metropolitan Statistical Areas (PMSA) definitions 
established by OMB in OMB Bulletin No. 99-04 on June 30, 1999. 
Therefore, for the purposes of designating Difficult Development Areas 
and Qualified Census Tracts ``metropolitan areas'' will continue to be 
defined according to the MSA/PMSA definitions established by the OMB in 
OMB Bulletin No. 99-04 on June 30, 1999, until further notice.

Background

    The U.S. Treasury Department and the Internal Revenue Service 
thereof are authorized to interpret and enforce the provisions of the 
Code, including the LIHTC found at section 42 of the Code (26 U.S.C. 
42). The Secretary of HUD is required to designate Difficult 
Development Areas and Qualified Census Tracts by section 42(d)(5)(C) of 
the Code.
    In order to assist in understanding HUD's mandated designation of 
Difficult Development Areas and Qualified Census Tracts for use in 
administering section 42 of the Code, a summary of section 42 is 
provided. The following summary does not purport to bind the Treasury 
or the IRS in any way, nor does it purport to bind HUD, as HUD has no 
authority to interpret or administer the Code, except in those 
instances where it has a specific delegation.

Summary of Low Income Housing Tax Credit

    The LIHTC is a tax incentive intended to increase the availability 
of low-income housing. Section 42 provides an income tax credit to 
owners of newly constructed or substantially rehabilitated low-income 
rental housing projects. The dollar amount of the LIHTC available for 
allocation by each state (credit ceiling) is limited by population. 
Each state is allocated credit based on a statutory formula indicated 
at section 42(h)(3). States may carry forward unallocated credit 
derived from the credit ceiling for one year; if a certain portion of 
this unallocated credit is not used by then, this portion goes into a 
national pool to be allocated to states as additional credit. State and 
local housing agencies allocate the state's credit ceiling among low-
income housing buildings whose owners have applied for the credit. 
Besides section 42 credits derived from the credit ceiling, states may 
also provide section 42 credits to owners of buildings based upon the 
percentage of certain building costs financed by tax-exempt bond 
proceeds. Credits provided under the tax-exempt bond ``volume cap'' do 
not reduce the credit available from the credit ceiling.
    The credit allocated to a building is based on the cost of units 
placed in service as low-income units under certain minimum occupancy 
and maximum rent criteria. In general, a building must meet one of two 
thresholds to be eligible for the LIHTC: either 20 percent of units 
must be rent-restricted and occupied by tenants with incomes no higher 
than 50 percent of the area median gross income (AMGI), or 40 percent 
of units must be rent restricted and occupied by tenants with incomes 
no higher than 60 percent of AMGI. The term ``rent-restricted'' means 
that gross rent, including an allowance for utilities, cannot exceed 30 
percent of the tenant's imputed income limitation

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(i.e., 50 percent or 60 percent of AMGI). The rent and occupancy 
thresholds remain in effect for at least 15 years, and building owners 
are required to enter into agreements to maintain the low-income 
character of the building for at least an additional 15 years.
    The LIHTC reduces income tax liability dollar for dollar. It is 
taken annually for a term of ten years and is intended to yield a 
present value of either (1) 70 percent of the ``qualified basis'' for 
new construction or substantial rehabilitation expenditures that are 
not federally subsidized (i.e., financed with tax-exempt bonds or 
below-market federal loans), or (2) 30 percent of the qualified basis 
for the cost of acquiring certain existing projects or projects that 
are federally subsidized. The actual credit rates are adjusted monthly 
for projects placed in service after 1987 under procedures specified in 
section 42. Individuals can use the credit up to a deduction equivalent 
of $25,000 (the actual maximum amount of credit that an individual can 
claim depends upon the individual's marginal tax rate). Individuals 
cannot use the credit against the alternative minimum tax. 
Corporations, other than S or personal service corporations, can use 
the credit against ordinary income tax. They cannot use the credit 
against the alternative minimum tax. These corporations can also deduct 
losses from the project.
    The qualified basis represents the product of the ``applicable 
fraction'' of the building and the ``eligible basis'' of the building. 
The applicable fraction is based on the number of low-income units in 
the building as a percentage of the total number of units, or based on 
the floor space of low income-units as a percentage of the total floor 
space of residential units in the building. The eligible basis is the 
adjusted basis attributable to acquisition, rehabilitation, or new 
construction costs (depending on the type of LIHTC involved). These 
costs include amounts chargeable to capital account incurred prior to 
the end of the first taxable year in which the qualified low-income 
building is placed in service or, at the election of the taxpayer, the 
end of the succeeding taxable year. In the case of buildings located in 
designated Qualified Census Tracts or designated Difficult Development 
Areas, eligible basis can be increased up to 130 percent of what it 
would otherwise be. This means that the available credit also can be 
increased by up to 30 percent. For example, if a 70 percent credit is 
available, it effectively could be increased up to 91 percent.
    Section 42 of the Code defines a Difficult Development Area as any 
area designated by the Secretary of HUD as an area that has high 
construction, land, and utility costs relative to the AMGI. All 
designated Difficult Development Areas in MSAs/PMSAs may not contain 
more than 20 percent of the aggregate population of all MSAs/PMSAs, and 
all designated areas not in metropolitan areas may not contain more 
than 20 percent of the aggregate population of all nonmetropolitan 
counties.
    Under section 42(d)(5)(C) of the Code, a Qualified Census Tract is 
any census tract (or equivalent geographic area defined by the Bureau 
of the Census) in which at least 50 percent of households have an 
income less than 60 percent of the AMGI or in which the poverty rate is 
at least 25 percent. There is a limit on the number of Qualified Census 
Tracts in any MSA or PMSA that may be designated to receive an increase 
in eligible basis: all of the designated census tracts within a given 
MSA/PMSA may not together contain more than 20 percent of the total 
population of the MSA/PMSA. For purposes of HUD designations of 
Qualified Census Tracts, all nonmetropolitan areas in a state are 
treated as if they constituted a single metropolitan area.

Explanation of HUD Designation Methodology

A. Qualified Census Tracts

    In developing this list of LIHTC Qualified Census Tracts, HUD used 
2000 Census data and the MSA/PMSA definitions established by the Office 
of Management and Budget in OMB Bulletin No. 99-04 on June 30, 1999. 
The LIHTC Qualified Census Tracts were determined as follows:
    1. A census tract must have 50 percent of its households with 
incomes below 60 percent of the AMGI or have a poverty rate of 25 
percent or more to be ``eligible.'' In metropolitan areas, HUD 
calculates 60 percent of AMGI by multiplying the MSA/PMSA median family 
income for 1999, as reported by the 2000 Census, by a factor of 0.6. 
Outside of metropolitan areas, HUD calculates 60 percent of AMGI by 
multiplying the state-specific, nonmetropolitan balance median family 
income by a factor of 0.6.
    2. For each census tract, the percentage of households below the 60 
percent income standard (the income criterion) was determined by (a) 
calculating the average household size of the census tract, (b) 
applying the income standard after adjusting it to match the average 
household size, and (c) calculating the number of households with 
incomes below the income standard.
    3. For each census tract, the poverty rate was determined by 
dividing the population with incomes below poverty by the population 
for whom poverty status has been determined.
    4. Qualified Census Tracts are those in which 50 percent or more of 
the households meet the income criterion or 25 percent or more of the 
population is in poverty, such that the population of all census tracts 
that satisfy either one or both of these criteria does not exceed 20 
percent of the total population of the respective area.
    5. In areas where more than 20 percent of the population resides in 
eligible census tracts, census tracts are designated as QCTs in 
accordance with the following procedure:
    a. Eligible tracts are placed in one of two groups. The first group 
includes tracts that satisfy both the income and poverty criteria. The 
second group includes tracts that satisfy either the income criterion 
or the poverty criterion, but not both.
    b. Tracts in the first group are ranked from lowest to highest on 
the income criterion. Then tracts in the first group are ranked from 
lowest to highest on the poverty criterion. The two ranks are averaged 
to yield a combined rank. The tracts are then sorted on the combined 
rank, with the census tract with the highest combined rank being placed 
at the top of the sorted list. In cases of tied combined ranks, more 
populous tracts are ranked above less populous ones.
    c. Tracts in the second group are ranked from lowest to highest on 
the income criterion. Then tracts in the second group are ranked from 
lowest to highest on the poverty criterion. The two ranks are then 
averaged to yield a combined rank. The tracts are then sorted on the 
combined rank, with the census tract with the highest combined rank 
being placed at the top of the sorted list. In cases of tied combined 
ranks, more populous tracts are ranked above less populous ones.
    d. The ranked first group is stacked on top of the ranked second 
group to yield a single, concatenated, ranked list of eligible census 
tracts.
    e. Working down the single, concatenated, ranked list of eligible 
tracts, census tracts are designated until the designation of an 
additional tract would cause the 20 percent limit to be exceeded. If a 
census tract is not designated because doing so would raise the 
percentage above 20 percent, then subsequent census tracts are 
considered to determine if one or more census tract(s) with smaller 
population(s) could

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be designated without exceeding the 20 percent limit.

B. Difficult Development Areas

    In developing the list of Difficult Development Areas, HUD compared 
incomes with housing costs. HUD used 2000 Census population data and 
the MSA/PMSA definitions as published by the Office of Management and 
Budget in OMB Bulletin No. 99-04 on June 30, 1999, with the exceptions 
described in section D., below. The basis for these comparisons was the 
FY 2003 HUD income limits for Very Low-Income households and FMRs used 
for the section 8 Housing Assistance Payments program. The procedure 
used in making the Difficult Development Area calculations follows:
    1. For each MSA/PMSA and each nonmetropolitan county, a ratio was 
calculated. This calculation used the FY 2003 two-bedroom FMR and the 
FY 2003 four-person VLIL.
    a. The numerator of the ratio was the area's FY 2003 FMR. In 
general the FMR is based on the 40th percentile rent paid by recent 
movers for a two-bedroom apartment. In metropolitan areas granted a FMR 
based on the 50th percentile rent for purposes of improving the 
administration of HUD's Housing Choice Voucher program (see 66 FR 162) 
the 40th percentile rent is used for nationwide consistency of 
comparisons.
    b. The denominator of the ratio was the monthly LIHTC income-based 
rent limit calculated as 1/12 of 30 percent of 120 percent of the 
area's VLIL (where 120 percent of the VLIL was rounded to the nearest 
$50 and not allowed to exceed 80 percent of the AMGI in areas where the 
VLIL is adjusted upward from its 50 percent of AMGI base).
    2. The ratios of the FMR to the LIHTC income-based rent limit were 
arrayed in descending order, separately, for MSAs/PMSAs and for 
nonmetropolitan counties.
    3. The Difficult Development Areas are those with the highest 
ratios cumulative to 20 percent of the 2000 population of all 
metropolitan areas and of all nonmetropolitan counties.

C. Application of Population Caps to Difficult Development Area 
Determinations

    In identifying Difficult Development Areas and Qualified Census 
Tracts, HUD applied various caps, or limitations, as noted above. The 
cumulative population of metropolitan Difficult Development Areas 
cannot exceed 20 percent of the cumulative population of all 
metropolitan areas and the cumulative population of nonmetropolitan 
Difficult Development Areas cannot exceed 20 percent of the cumulative 
population of all nonmetropolitan counties.
    In applying these caps, HUD established procedures to deal with how 
to treat small overruns of the caps. The remainder of this section 
explains the procedure. In general, HUD stops selecting areas when it 
is impossible to choose another area without exceeding the applicable 
cap. The only exceptions to this policy are when the next eligible 
excluded area contains either a large absolute population or a large 
percentage of the total population, or the next excluded area's ranking 
ratio as described above was identical (to four decimal places) to the 
last area selected, and its inclusion resulted in only a minor overrun 
of the cap. Thus for both the designated metropolitan and 
nonmetropolitan Difficult Development Areas there may be a minimal 
overrun of the cap. HUD believes the designation of these additional 
areas is consistent with the intent of the legislation. Some latitude 
is justifiable because it is impossible to determine whether the 20 
percent cap has been exceeded, as long as the apparent excess is small, 
due to measurement error. Despite the care and effort involved in a 
decennial census, it is recognized by the Census Bureau, and all users 
of the data, that the population counts for a given area and for the 
entire country are not precise. The extent of the measurement error is 
unknown. Thus, there can be errors in both the numerator and 
denominator of the ratio of populations used in applying a 20 percent 
cap. In circumstances where a strict application of a 20 percent cap 
results in an anomalous situation, recognition of the unavoidable 
imprecision in the census data justifies accepting small variances 
above the 20 percent limit.

D. Exceptions to OMB Definitions of MSAs/PMSAs and Other Geographic 
Matters

    As stated in OMB Bulletin 99-04 defining metropolitan areas:

``OMB establishes and maintains the definitions of the [Metropolitan 
Areas] solely for statistical purposes * * * OMB does not take into 
account or attempt to anticipate any nonstatistical uses that may be 
made of the definitions * * *. We recognize that some legislation 
specifies the use of metropolitan areas for programmatic purposes, 
including allocating federal funds.''

HUD makes exceptions to OMB definitions in calculating FMRs by deleting 
counties from metropolitan areas whose OMB definitions are determined 
by HUD to be larger than their housing market areas.
    The following counties are assigned their own FMRs and VLILs and 
evaluated as if they were separate metropolitan areas for purposes of 
designating Difficult Development Areas.

Metropolitan Area and Counties Deleted

Chicago, IL: DeKalb, Grundy, and Kendall Counties.
Cincinnati-Hamilton, OH-KY-IN: Brown County, Ohio; Gallatin, Grant, and 
Pendleton Counties, Kentucky; and Ohio County, Indiana.
Dallas, TX: Henderson County.
Flagstaff, AZ-UT: Kane County, Utah.
New Orleans, LA: St. James Parish.
Washington, DC-MD-VA-WV: Clarke, Culpeper, King George, and Warren 
Counties, Virginia; and Berkely and Jefferson Counties, West Virginia.

Affected MSAs/PMSAs are assigned the indicator ``(part)'' in the list 
of Metropolitan Difficult Development Areas. Any of the excluded 
counties designated as difficult development areas separately from 
their metropolitan areas are designated by the county name.
    In the New England states (Connecticut, Maine, Massachusetts, New 
Hampshire, Rhode Island, and Vermont) OMB defines MSAs/PMSAs according 
to county subdivisions or Minor Civil Divisions (MCDs) rather than 
county boundaries. Thus, when a New England county is designated as a 
Nonmetropolitan Difficult Development Area, only that part of the 
county (the group of MCDs) not included in any MSA/PMSA is the 
Nonmetropolitan Difficult Development Area. Affected counties are 
assigned the indicator ``(part)'' in the list of Nonmetropolitan 
Difficult Development Areas. Also in the New England states, census 
tracts may be cut by MSA/PMSA boundaries. Only those LIHTC projects 
located in the part of the tract in the listed MSA/PMSA or 
nonmetropolitan area may be allowed the increase in basis. Affected 
tracts are marked with an asterisk (*) in the list of Qualified Census 
Tracts.
    For the convenience of readers of this notice, the geographic 
definitions of designated Metropolitan Difficult Development Areas and 
the MCDs included in Nonmetropolitan Difficult Development Areas in the 
New England states are included in the list of Difficult Development 
Areas.
    Certain nonmetropolitan county equivalent areas in Alaska for which 
FMRs and VLILs are calculated and thus form the basis of Difficult 
Development Area designations are no longer recognized as geographic 
entities by the Census Bureau. Therefore, no 2000 Census population 
counts are produced

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for these areas. HUD estimates the 2000 population of these areas as 
follows:
    1. The 2000 Population of Denali Borough (1,893) was allocated 
entirely to the Yukon-Koyukuk Census Area. The part of Denali Borough 
created from the Southeast Fairbanks Census Area was deemed uninhabited 
after examination of Census Block data for, and maps of, the area of 
Denali Borough formerly in the Southeast Fairbanks Census Area.
    2. The population of Yakutat City and Borough (808) was allocated 
to the former Skagway-Yakutat-Angoon Census Area (680) and the Valdez-
Cordova Census Area (128). The populations of Yakutat City and Borough 
Census Blocks located east of 141[deg] longitude were allocated to the 
Skagway-Yakutat-Angoon Census Area. The populations of Yakutat City and 
Borough Census Blocks located west of 141[deg] longitude were allocated 
to the Valdez-Cordova Census Area.

Future Designations

    Difficult Development Areas are designated annually as updated 
income and FMR data become available. Qualified Census Tracts are 
updated periodically to reflect changes in OMB's designations of 
metropolitan areas. Qualified Census Tracts are not being updated at 
this time to reflect the recent change in metropolitan area definitions 
(OMB Bulletin N0. 03-04, June 6, 2003) because the Census Bureau has 
not yet released official data on median incomes in the newly defined 
metropolitan areas and nonmetropolitan parts of states. This notice 
designates Qualified Census Tracts for American Samoa, Guam, and the 
Northern Mariana Islands based on 2000 Census data. The 2003 Qualified 
Census Tracts designated for the 50 states, the District of Columbia, 
Puerto Rico, and the Virgin Islands published December 12, 2002, at 67 
FR 76452 are unchanged by this notice.

Effective Date

    The lists of Difficult Development Areas and the list of Qualified 
Census Tracts are effective for allocations of credit made after 
December 31, 2003. In the case of a building described in section 
42(h)(4)(B) of the Code, the lists are effective if the bonds are 
issued and the building is placed in service after December 31, 2003.

Interpretive Examples for Effective Date

    For the convenience of readers of this notice, interpretive 
examples are provided below to illustrate the consequences of the 
effective date in areas that gain or lose Difficult Development Area 
status with respect to projects described in section 42(h)(4)(B) of the 
Code. The examples are equally applicable to Qualified Census Tract 
designations.
    (Case A) Project ``A'' is located in a newly designated 2004 
Difficult Development Area. Bonds are issued for Project ``A'' on 
November 1, 2003, and Project ``A'' is placed in service March 1, 2004. 
Project ``A'' IS NOT eligible for the increase in basis otherwise 
accorded a project in this location because the bonds were issued 
BEFORE January 1, 2004.
    (Case B) Project ``B'' is located in a newly designated 2004 
Difficult Development Area. Project ``B'' is placed in service November 
15, 2003. The bonds that will support the permanent financing of 
Project ``B'' are issued January 15, 2004. Project ``B'' IS NOT 
eligible for the increase in basis otherwise accorded a project in this 
location because the project was placed in service BEFORE January 1, 
2004.
    (Case C) Project ``C'' is located in an area that is a Difficult 
Development Area in 2003, but IS NOT a Difficult Development Area in 
2004. Bonds are issued for Project ``C'' on October 30, 2003, but 
Project ``C'' is not placed in service until March 30, 2004. Project 
``C'' is eligible for the increase in basis available to projects 
located in 2003 Difficult Development Areas because the first of the 
two events necessary for triggering the effective date for buildings 
described in section 42(h)(4)(B) of the Code (the two events being 
bonds issued and buildings placed in service) took place on October 30, 
2003, a time when project ``C'' was located in a Difficult Development 
Area.

Other Matters

Environmental Impact

    In accordance with 40 CFR 1508.4 of the CEQ regulations and 24 CFR 
50.19(c)(6) of the HUD regulations, the policies and procedures 
contained in this notice provide for the establishment of fiscal 
requirements or procedures which do not constitute a development 
decision that affects the physical condition of specific project areas 
or building sites and therefore, are categorically excluded from the 
requirements of the National Environmental Policy Act, except for 
extraordinary circumstances, and no FONSI is required.

Impact on Small Entities

    The Secretary, in accordance with 5 U.S.C. section 605(b) (the 
Regulatory Flexibility Act), has reviewed and approved this notice, and 
in so doing certifies that this notice does not have a significant 
economic impact on a substantial number of small entities. The notice 
involves the designation of ``Difficult Development Areas'' and 
``Qualified Census Tracts'' as required by section 42 of the Code, as 
amended, for use by political subdivisions of the states in allocating 
the Low-Income Housing Tax Credit. This notice places no new 
requirements on the states, their political subdivisions, or the 
applicants for the credit. This notice also details the technical 
methodology used in making such designations.

Federalism Impact

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the notice 
either imposes substantial direct compliance costs on state and local 
governments and is not required by statute, or the rule preempts state 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. As a result, the notice is not 
subject to review under the order. The notice merely designates 
``Difficult Development Areas'' and ``Qualified Census Tracts'' as 
required under section 42 of the Internal Revenue Code, as amended, for 
the use by political subdivisions of the states in allocating the Low-
Income Housing Tax Credit. The notice also details the technical 
methodology used in making such designations.

    Dated: December 11, 2003.
Mel Martinez,
Secretary.
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[FR Doc. 03-31268 Filed 12-18-03; 8:45 am]
BILLING CODE 4210-62-C