Corporation Will Award $5 Million in 9% Tax Credits in November and $5 Million This Spring
BATON ROUGE, La. – August 26, 2015 – (RealEstateRama) — The Louisiana Housing Corporation (LHC) has begun the application process for the 2016 Low Income Housing Tax Credit (LIHTC) funding round with plans to award approximately $5 million in 9% tax credits in November and another $5 million this spring.
“We listened to Louisiana developers who asked for an accelerated timeline for funding and are making these tax credits available sooner rather than later,” said Mayson Foster, chairman of the LHC board of directors. “The LIHTC is a great incentive for the development of affordable rental housing because it provides a dollar-for-dollar reduction to an investor’s federal tax liability.”
The LHC released its 2016 Draft Qualified Allocation Plan on August 12, which outlines and guides the way the state awards federal tax credits to developers of affordable housing. The corporation will hold a public hearing to receive comments on the plan August 28 at 9:00 a.m. at the LHC headquarters located at 2415 Quail Drive in Baton Rouge.
The corporation recently concluded its 2015 funding round and awarded $11 million in housing tax credits to 23 developments. The funding will finance more than 1,000 units of affordable housing in 15 different parishes. Federal law requires the funded developments to keep a percentage of units affordable for low and middle income families for at least 15 years.
“The LHC received many worthwhile applications during our last funding round,” said Foster. “We plan to hold two funding rounds this year, so even if a project wasn’t approved in 2015, we encourage applicants to try again.”
A detailed list of the 2015 awarded tax credit recipients and developments is available here and online at www.lhc.la.gov. This was the first year developers submitted applications for housing tax credits completely online. The corporation scored applications based on financial viability, among other factors, and awarded funding through a competitive process.
For more information, contact Sarah Mulhearn at 225.763.8895, ext. 355