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Housing Solutions: The Low Income Housing Tax Credit (LIHTC) Program Robin Ambroz Deputy Director of Programs Nebraska Investment Finance Authority. Established under the Tax Reform Act of 1986 An effort to partially privatize the affordable housing industry - PowerPoint PPT Presentation
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Housing Solutions: The Low Income Housing Tax Credit (LIHTC)
Program
Robin AmbrozDeputy Director of Programs
Nebraska Investment Finance Authority
LIHTC Program: The DetailsLIHTC Program: The Details*Established under the Tax Reform Act of 1986
*An effort to partially privatize the affordable housing industry
*Program works by providing investor equity, thus reducing the amount of debt service on a project, allowing lower rents to be charged to tenants while still producing positive cash flow
*Provides a dollar-for-dollar reduction in tax liability for owners (and the partners of the owners)
Basic RequirementsBasic Requirements
*Low Income Units:*Rent & Income restricted to a minimum of either
*20% of units at 50% of AMI or *40% of units at 60% of AMI
*Points given in application process for lower income targeting
*Affordability Period:*Minimum of 30 years (15-year initial compliance period & 15-
year extended use period)
*Points given in application process for longer affordability periods
How it worksHow it works*Project owners are generally Limited Partnerships or Limited Liability Companies
*Equity generated from LIHTC typically covers 60-70% of project costs
*Sources to fill the gap*HOME Funds*NE Affordable Housing Trust Funds*FHLBank of Topeka*Permanent Loan*Deferred Developer Fee*Additional Equity Contributions
Project Project StructureStructure
Annual Qualified Annual Qualified Allocation Plan (QAP)Allocation Plan (QAP)
*The QAP governs the annual distribution of tax credits.
*QAP Process:*Focus Group Meetings*NIFA \ NDED planning sessions*Public Hearing*Board Approval*Governor’s Approval
Application Process: Application Process: Competitive CycleCompetitive Cycle*Threshold Review (optional)*Applications are reviewed for the threshold requirements*Applicant receives feedback regarding the threshold items
in their application.
*Final Review*Applicants must meet threshold requirements before the
development can be considered for an allocation.*Points awarded for specific items contained in the
application.
Application Process: CRANEApplication Process: CRANE*CRANE = Collaborative Resource Allocation for Nebraska*Difficult-to-Develop Projects*Negotiated Outcomes \ Individualized timelines*Public Process \ Monthly Meetings
*Eligible Project Type:*Housing for individuals with special needs
*Must meet all Threshold items & complete entire application
Cirrus HouseCirrus House*48 units for individuals with Severe Mental Illness completed in 3 phases
*New construction completed in 2003, 2006, and 2012
Stephen Center Stephen Center *16 Two-bedroom units for men & women in their HERO program
*Shared restroom and dining facilities
*New construction completed in 2006
*Received allocation for additional 61 units in 2013
People’s City Mission: Curtis People’s City Mission: Curtis CenterCenter*60 Single Room Occupancy Units for men
*Shared restroom & dining facilities
*New construction completed in 2008
Christian Worship Center: Christian Worship Center: New Visions New Visions
*14 Efficiency Units for Veterans
*New construction completed in 2010
Open Door Mission: Open Door Mission: Rebuilding Lives Rebuilding Lives *219 units in 3 phases*Single Room Occupancy*One, Two, and Three Bedroom Units*Shared common areas*Serving men, women, and families with children
*New construction completed in 2009, 2011, and 2012
Siena / Francis House: Siena / Francis House: Siena / Francis Apartments Siena / Francis Apartments *48 One-bedroom units*Shared common space*Single men & women
*New construction completed in 2012
Contact Information:
Teresa KileLIHTC Manager
Kelly SchultzeLIHTC Assistant [email protected]
Nebraska Investment Finance Authority (NIFA)1230 ‘O’ Street, Suite 200
Lincoln, NE 68508402-434-3900www.nifa.org