Money allocated for 602 low-income housing units

Thursday afternoon the Arkansas Development Finance Authority awarded $7,248,907 in federal low-income housing tax credits (LIHTC), another $250,000 in state tax credits,

$4,269,300 in federal HOME program funds and $2,026,000 in mortgage settlement funds to help in the construction or renovation of 14 affordable rental developments located throughout Arkansas.

Because federal tax credits are taken over a 10 year period of time, the award represents a financial incentive of over $70 million to developers and builders to produce affordable rental housing in Arkansas. The funds will be used to build or renovate 602 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.

The following developments were awarded a combination of federal LIHTC, state LIHTC, HOME Program Funds, and national bank mortgage settlement funds:

Congressional District 1

Development & City / LIHTC / HOME / Mortgage Settlement Funds # Units

Rolling Hills, Paragould / $485,430- Federal / $0 / $450,000 / 32

Riverside Park, West Memphis / $600,000- Federal / $450,000 / $0 / 56

$120,000 – State

Villas II, West Memphis / $625,000 – Federal / $450,000 / $0 / 50

$125,000

Parkwood, Hoxie / $177,833 – Federal / $219,300 / $0

Congressional District 2

Development & City / LIHTC / HOME / Mortgage Settlement Funds /  # Units

Cottages at Conway, Conway / $600,000 - Federal / $900,000 / $0 / 50

Peaks at Searcy, Searcy / $600,000 - Federal / $450.000 / $0 / 40

Villas of Searcy, Searcy / $600,000 - Federal / $450,000 / $0 / 52

  

Congressional District 3Development & City / LIHTC / HOME / Mortgage Settlement Funds / # Units

Hillside, Flippin / $522,634-Federal / $450,000 / $0 / 48

Majestic View, Mountain View / $600,000 -Federal / $0 / $450,000 / 40 

Congressional District 4

Development & City / LIHTC / HOME / Mortgage Settlement Funds / # Units

Deer Run, Hamburg / $206,,083 -Federal / $0 / $226,000 / 25

Garden Walk, Ozark / $406,927-Federal / $0 / $450,000 / 44

Legacy at El Dorado, El Dorado / $600,000 -Federal / $0 / $450,000 / 50

Lofts, Texarkana / $625,000 –Federal / $900,000 / $0 / 46

$5,000-State      

Preston, Magnolia / $600,000-Federal / $0 / $0 / 40

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.