Funding available for low income housing

The Arkansas Development Finance Authority (ADFA) Board of Directors today approved 14 applications to develop or rehabilitate 747 affordable multifamily rental units across the state for families, individuals and persons with special support needs.  Eleven of the projects approved are to acquire and/or rehabilitate existing properties and three are for new construction. 

For the 2012 multifamily funding cycle, ADFA awarded $6,555,264 in Federal Low Income Housing Tax Credits (LIHTC), $250,000 in State LIHTCs, $1,220,445 in HOME Program funds, $900,000 in HOME Community Housing Development Organization (CHDO) funds, and $750,000 in Finance Adjustment Factor / Below Market Interest Rate Program (FAF/BMIR) funds. 

It is important to note that a project’s tax credit award is received each year for the first 10 years of a development’s operating period.  For example, a $500,000 reservation results in a total tax credit award of $5 million. 

Developments are structured so that the sale of a project’s housing tax credits and other tax benefits provides a source of capital for the development of affordable rental housing.  This equity investment reduces the need for financing thereby reducing operating costs, which is passed along in the form of reduced rents. 

The following developments received 2012 funding in Congressional District 4:

Development and City  / LIHTC / HOME FAF/BMIR / # Units 

Park Place, Hot Springs / $600,000 / $250,000 / 71
River Oaks, Arkadelphia / $209,849 / $210,000 / 24

More information about ADFA and its affordable housing development programs can be found on ADFA’s website www.arkansas.gov/adfa.