WASHINGTON, D.C. – April 26, 2013 – (RealEstateRama) — On Wednesday, April 24, 2013, the Wyoming Community Development Authority (WCDA) Board of Directors approved the allocation of approximately $2.2 million in Low Income Housing Tax Credits (LIHTC) and $2.8 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 131 rental units in six new multifamily projects.
WCDA received a total of 16 applications for funding from the HOME and tax credit programs during its 2013 opening round of funding. “This year the applications represented just over $10 million in requests, our largest application cycle in many years,” said Gayle Brownlee, WCDA Director of Federal Programs.
The LIHTC and HOME funds will help finance the following affordable housing developments:
Willow Creek Apartments in Cody, submitted by Summit Housing Group, will receive tax credit and HOME funds for a 12-unit new construction, affordable housing project.
Ironwood Apartments in Powell, submitted by Wyoming Housing Network and Blue Line Development, will receive tax credit and HOME funds for a 12-unit new construction, affordable housing project.
Cedar Mountain Apartments in Cody, submitted by Wyoming Housing Network and Blue Line Development, will receive tax credit and HOME funds for a 12-unit new construction, affordable housing project.
Buck Creek Apartments in Powell, submitted by Summit Housing Group, will receive tax credit and HOME funds for a 12-unit new construction, affordable housing project.
Glacier Place Apartments in Laramie, submitted by Summit Housing Group, will receive tax credit funds for a 48-unit new construction, affordable housing project.
Legacy Senior Residencies in Laramie, submitted by Cornerstone Associates, will receive tax credit and HOME funds for a 36-unit new construction, elderly, 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.
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 45 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.
