Funding Approved to Build or Renovate 1,069 Affordable Rental Units
WASHINGTON, D.C. – August 21, 2015 – (RealEstateRama) — Thursday afternoon the Arkansas Development Finance Authority awarded $10,911,780 in federal low-income housing tax credits (LIHTC), another $161,091 in state tax credits, $3,131,000 in federal HOME program funds, $1,444,783 in Rural Development Preservation Revolving Loan Funds, $450,000 in mortgage settlement funds, and $200,000 in Finance Adjustment Factor (FAF) funds to help in the construction or renovation of affordable rental developments located throughout Arkansas.
“The Low Income Housing Tax Credit Program helps build strong partnerships between non-profit and private sector developers, investors and supporters of affordable housing in Arkansas,” said ADFA President Aaron Burkes. “This investment in affordable housing is important to the State’s future economic development efforts by ensuring we have quality rental housing constructed and available throughout the state.”
Because federal tax credits are taken over a 10 year period of time, the award represents a financial incentive of over $100 million to developers and builders to produce affordable rental housing in Arkansas. The funds will be used to build or renovate 1,069 affordable rental housing units for families, individuals and persons with special support needs in Arkansas and help provide greater housing choice and opportunity for low-income households.
Projects are structured so that the sale of a projects housing tax credits and other tax benefits provides a source of capital for the development of affordable rental housing. The amount of federal tax credits listed is received each year for the first 10 years of a projects operating period. For example, a $500,000 reservation results in a total tax credit award of $5 million.
The equity investment reduces the need for financing thereby reducing operating costs, which is passed along in the form of reduced rents.
ADFA administers the state HOME Program, Low Income Housing Tax Credit Program, and $9 million the State of Arkansas received as part of the national bank mortgage settlement to finance affordable housing in partnership with local governments, nonprofit organizations and for-profit developers.
See attached PDF for a list of developments awarded a combination of federal LIHTC, state LIHTC, HOME Program Funds, HOME Community Housing Development Organization side aside funds, national bank mortgage settlement funds and FAF Funds.
Contact:
Multi-Family Manager Ben Van Kleef – 501-682-5927 email: ben.vankleef (at) adfa.arkansas (dot) gov
Public Information Officer Derrick Rose – 501-692-5904 email: derrick.rose (at) adfa.arkansas (dot) gov
