Casper – December 11, 2013 – (RealEstateRama) — The Wyoming Community Development Authority (WCDA) Board of Directors approved Low Income Housing Tax Credit (LIHTC) funding for the rehabilitation of Cedar Creek I Apartments in Jackson, Wyoming. The tax credits, which are allocated by the WCDA through a competitive application process, will finance the rehabilitation of all 23 affordable rental units in the Cedar Creek I Apartments.
The LIHTC program allocates federal income tax credits over a 10 year period to eligible projects. The credits are then purchased by private investors, who become limited partners in the projects and reduce the need for public subsidies. Projects that receive Low Income Housing Tax Credits must rent to tenants with household incomes at or below 60% of Area Median Income. LIHTC projects have a track record of boosting local economies as they generate construction-related jobs, promote local investment, and help create housing that is affordable for the local workforce.
According to developers Northwest Associates, the 30 year-old project will undergo over $1 million in repairs including a new roof, siding, windows, doors, site work and interior work to the kitchens, bathrooms, flooring and heating systems.
To rank within the application evaluation process, developers must demonstrate that the proposed project not only meets the community’s housing needs, but also serves the appropriate in-need population as determined by income levels, rent levels, age, special needs, family size and other demographic factors. The developers determine these needs through market feasibility studies and research.