Plan Will Bring New Investment Dollars to Michigan, Attract Talent, Create Jobs Applications Due August 15, 2012
LANSING, Mich., July 17, 2012 /PRNewswire-USNewswire/ -- In his continuing efforts to reinvent Michigan, Governor Rick Snyder approved the Michigan State Housing Development Authority's (MSHDA) Qualified Allocation Plan (QAP) giving his stamp of approval to the completely overhauled plan for developers and investors using the federal Housing Tax Credit program in Michigan just in time for the application deadline of August 15, 2012. The Housing Tax Credit program has been touted as the most successful affordable housing production and preservation tool in U.S history.
"The new allocation plan demonstrates MSHDA's solid leadership in supporting strong neighborhoods, revitalization of Michigan's downtowns and affordable rental housing," Gov. Snyder said. "The result is more jobs and creative, prosperous regions that are necessary to build a new Michigan economy."
Each state receives a certain amount of tax credits each year based on population. Housing developers must compete to win the tax credits and the QAP provides the program requirements and scoring framework for awarding the credits. The highest scoring projects win funding. After receiving an award of tax credits, developers sell them to investors and the money raised helps pay to build affordable housing.
The Housing Tax Credit program has been in place since 1986 and as new requirements and policies were introduced over the years, the process became more complex for developers and users of the program.
"With 25 years of history behind us, it became clear that the time had come for a significant re-write and overhaul of the QAP if we were going to be responsive to Michigan's economic challenges and remain true to our mission," said MSHDA Executive Director Gary Heidel. "This simplified, full-process overhaul will make Michigan more attractive for developers to invest in the state despite the overall decline in federal funding. It will help Michigan recover while restoring cities and increasing the quality of life in all of our communities."
Revamping of the plan began in August 2011 and included public hearings, interest group and stakeholder meetings, focus groups and summits.
"These conversations allowed more opportunity for stakeholder and partner input than ever before in MSHDA's history," Heidel said. "The result was not only a transparent procedure but a more user-friendly allocation process for developers and investors using the Housing Tax Credit program. If we want to attract investors, we need to make Michigan an attractive place to do business."
Many of the plan's changes in scoring involve components to stimulate community revitalization in rural and urban areas and take into consideration proximity to transportation and other placemaking amenities. Cost containment, permanent supportive housing category modifications, and community support among others also are included in the changes. In addition, the new version of the Primary Application will be available in Excel form for easier use. To view the full QAP and to get further information visit www.michigan.gov/mshda and click on Developer's and Contractors and Low Income Housing Tax Credit (LIHTC).
The Michigan State Housing Development Authority (MSHDA) provides financial and technical assistance through public and private partnerships to create and preserve decent, affordable housing for low- and moderate-income residents and to engage in community economic development activities to revitalize urban and rural communities.*
*MSHDA's loans and operating expenses are financed through the sale of tax-exempt and taxable bonds as well as notes to private investors, not from state tax revenues. Proceeds are loaned at below-market interest rates to developers of rental housing, and help fund mortgages and home improvement loans. MSHDA also administers several federal housing programs. For more information, visit www.michigan.gov/mshda.
SOURCE Michigan State Housing Development Authority