Casper – May 20, 2015 – (RealEstateRama) — On May 14th, 2015, the Wyoming Community Development Authority (WCDA) Board of Directors approved the allocation of $580,850 in Low Income Housing Tax Credits (LIHTC) to an affordable housing development in Gillette, Wyoming. The tax credits which are allocated by the WCDA through a competitive application process, will finance the development of 53 rental units in this multifamily project.
The LIHTC will help finance the following affordable housing development:
• Sage Valley Apartments in Gillette, submitted by Summit Housing Group, will receive tax credit funding for a 53-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 June 26, 2015 with final decisions scheduled approximately November 19, 2015.
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 for ten years, which are sold to third party investors through syndicators which then is a source of equity in these multi-family rental projects. The approved project is anticipated to bring in $5.4 million in capital from out of state through the syndication of the tax credits. Projects that receive Low Income Housing Tax Credits must rent to tenants with household incomes at or below 60% 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