This is the accessible text file for GAO report number GAO-10-1022R 
entitled 'Recovery Act: Survey of State Housing Finance Agencies' Use 
of the Low-income Housing Tax Credit Assistance Program (TCAP) and the 
Section 1602 Program' which was released on September 20, 2010. 

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United States Government Accountability Office: 
Washington, DC 29=0548: 

September 20, 2010: 

The Honorable Robert Menendez:
The Honorable David Vitter:
Ranking Member:
Subcommittee on Housing, Transportation, and Community Development: 
Committee on Banking, Housing, and Urban Affairs: 
United States Senate: 

The Honorable Maxine Waters:
The Honorable Shelley Moore Capito: Ranking Member:
Subcommittee on Housing and Community Opportunity: 
Committee on Financial Services:
House of Representatives: 

Subject: Recovery Act: Survey of State Housing Finance Agencies' Use 
of the Low-income Housing Tax Credit Assistance Program (TCAP) and the 
Section 1602 Program: 

In February 2009, Congress created two new programs as part of the 
American Recovery and Reinvestment Act of 2009: (1) the Tax Credit 
Assistance Program (TCAP) administered by the Department of Housing 
and Urban Development (HUD) and (2) the Grants to States for Low-
income Housing Projects in Lieu of Low-inome Housing Credits Program 
under Section 1602 of the Recovery Act (Section 1602 Program) 
administered by the Department of Treasury (Treasury). 

Congress created these new programs to address the lack of private 
investment capital in Low-income Housing Tax Credit (LIHTC) projects 
after the credit market was disrupted in 2008. Both programs were 
intended to provide gap financing for stalled, "shovel-ready" projects 
and to offset a drop in tax credit demand and pricing. Under these 
programs, state Housing Finance Agencies (HFA) administer federal 
funds in the form of grants and loans from HUD and Treasury to fill 
financing gaps in planned tax credit projects. 

As part of our work examining how federal agencies and HFAs are 
implementing TCAP and the Section 1602 Program, we developed a Web- 
based survey for HFA managers in all 50 states, the District of 
Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands. Our survey 
asked about the status of program delivery, program design, safeguards 
and controls, expected results, and challenges to implementation. We 
distributed our survey in November and early December 2009 and 
received usable responses from all 54 agencies. 

We designed and tested the self-administered questionnaire in 
consultation with experts, representatives of housing finance 
stakeholders, and state agency managers. While all state agencies 
returned questionnaires, and thus our data are not subject to sampling 
or overall nonresponse error, the practical difficulties of conducting 
any survey may introduce other errors in our findings. We took steps 
to minimize errors of measurement, question-specific nonresponse, and 
data processing. In addition to the minimizing errors as described 
above and pretesting the questionnaire with four state agency 
officials before the survey, we also: 

* contacted each agency before the survey to determine whether our 
originally identified respondent was the most appropriate and 
knowledgeable person to answer our questions, and made changes to our 
contact list as necessary; 

* resolved respondent difficulties in answering our questions during 
the survey; and: 

* recontacted selected respondents to follow up on answers that were 
missing or that required clarification. 

Finally, we independently verified analysis programs and other data 

We first reported results of our survey in our May 2010 Recovery Act 
report, where we described HFA progress and challenges in implementing 
TCAP and the Section 1602 Program and the programs' impact on the 
LIHTC market.[Footnote 1] In our September 2010 Recovery Act report we 
describe oversight activities planned by HFAs for TCAP and Section 
1602 Program projects (GAO-10-999). In addition to data on these 
issues, we collected other information about TCAP and the Section 1602 
Program that can inform Congress, HUD and Treasury, HFAs, and industry 
stakeholders about overseeing the programs. To link to the e-
supplement that shows the survey questions and summarizes the 
responses by question, click on GAO-10-1023SP. 

We are sending copies of this report to HUD, Treasury, and other 
interested parties. In addition, this report will be available at no 
charge on GAO's Web site at [hyperlink,]. 

If you have any questions or need additional information, please 
contact me at (202) 512-8678 or Key contributors to 
this report include Andy Finkel (Assistant Director), Roberto Pinero, 
Jennifer Alpha, Swati Thomas, Heather Chartier, and Carl Ramirez. 

Signed by: 

Mathew J. Scire:
Director, Financial Markets and Community Investment: 

[End of section] 


[1] See GAO, Recovery Act: States' and Localities' Uses of Funds and 
Actions Needed to Address Implementation Challenges and Bolster 
Accountability, [hyperlink,] 
(Washington, D.C.: May 26, 2010), 138-163. 

[End of section] 

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