Casper – May 22, 2014 – (RealEstateRama) — On Thursday, May 15, 2014, the Wyoming Community Development Authority (WCDA) Board of Directors approved the allocation of approximately $1.3 million in Low Income Housing Tax Credits (LIHTC) and $1.5 million in HOME Investment Partnership Program funds to affordable housing developments across Wyoming. The tax credits and HOME funds, which are allocated by the WCDA through a competitive application process, will finance the development of a total of 110 rental units in three multifamily projects.
The LIHTC and HOME funds will help finance the following affordable housing developments:
Valley Hills Apartments in Casper, submitted by Summit Housing Group, will receive tax credit and HOME funds for a 36-unit new construction, affordable housing project.
Cedar Creek Apartments II in Jackson, submitted by Machacek Real Estate Holdings, will receive tax credit funds for the rehabilitation of a 27-unit, affordable housing project.
Fox Farm Townhomes in Cheyenne, submitted by Summit Housing Group, will receive tax credit funds for a 47-unit new construction, affordable housing project.
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.
A second round of funding is now open with a deadline to submit applications of August 22, 2014 with final decisions schedule approximately November 13, 2014.
The LIHTC program acts as a source of equity in multi-family rental projects through the syndication of federal tax credits. Projects that meet the minimum underwriting criteria and rank high enough in the competitive allocation process receive an annual allocation of Low Income Housing Tax Credits, which are sold to third party investors through syndicators. Projects that receive Low Income Housing Tax Credits must rent to tenants with household incomes at or below 60% of Area Median Income.
The HOME Investment Partnerships program is a long term, low interest rate debt program that is most often used in Wyoming to finance affordable multi-family apartment projects. WCDA requires HOME funds to be repaid over a maximum 40 year period at a 3% interest rate. Projects that apply for HOME funds must go through the same competitive allocation process as Low Income Housing Tax Credit projects and must rent to tenants at or below 50% of Area Median Income.
For more information, contact the WCDA at (307) 265-0603.
The WCDA was created in 1975 by state statute as an instrumentality of the State of Wyoming. It receives no state funding but instead brings private capital to Wyoming on the strength of federal tax benefits for investment into affordable homes and rental apartments.
WCDA Communications Manager
smith (at) wyomingcda (dot) com jul 11, 2013