Louisiana Housing Corporation Tackles Rent Stress with $129.5 Million in New Construction and Rehabilitation

BATON ROUGE, LA – December 01, 2015 – (RealEstateRama) — The Louisiana Housing Corporation (LHC) board of directors awarded $12.1 million in funding Wednesday to finance the construction and rehabilitation of 952 housing units of affordable housing. The $129.5 million in total development costs is powered by LHC’s issuance of $12.1 million in tax credits which generated $117 million in private funding.

The funding includes $9.7 million in tax credits and $2.4 million in tax credit assistance. This investment by the LHC will have an estimated statewide economic impact of $161.5 million* and will create 1,162 jobs within the first year. Thirteen Louisiana parishes will benefit with East Baton Rouge Parish and Orleans Parish gaining 100 and 110 units of affordable housing, respectively.

The federal government allocates a certain number of LIHTCs each year to states, and the LHC awards them at least once a year through its Qualified Allocation Plan (QAP). The credits are attractive to developers of affordable housing, because projects can move forward that otherwise may have been too expensive to build. Investors who buy LIHTCs receive a dollar for dollar reduction on their federal income tax returns.

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