Low Income Housing Tax Credit Program Expected to Generate Over $4 Million in Private Investment
LANSING, Mich., Jan. 7, 2013 /PRNewswire-USNewswire/ -- A plan for a new $4.2 million affordable housing development for seniors in downtown Hart was announced today by Michigan State Housing Development Authority (MSHDA) Executive Director Scott Woosley. The Lake Pointe Apartments project on Hart Lake is financed with Low Income Housing Tax Credits (LIHTC) administered through MSHDA and occupancy is anticipated by later this summer.
"This project is a striking example of how the LIHTC program positively impacts the state's economic recovery by leveraging further investment in a community," Woosley said. "We anticipate that the $4.2 million in Housing Tax Credits will leverage, conservatively, more than $4 million in private equity for the city of Hart. This sort of investment and community building is possible in other communities throughout the state through the program."
The American Taxpayer Relief Act of 2012 effectively extended the fixed 9% Housing Credit rate for projects allocated by the end of 2013. The provision authorizes Housing Finance Agencies, including MSHDA to apply the fixed 9 percent rate to Housing Credit allocations made before January 1, 2014, rather than to developments placed in service before December 31, 2013, as current law requires.
Senator Goeff Hansen represents Hart in the Michigan state senate and was intimately involved in this project for many years. He was on hand for the project's Dec. 27 ribbon cutting ceremony.
"The Housing Credit is the fundamental housing resource used to transform communities," said Sen. Hansen. "That is clearly demonstrated in this project and what it has done and will do for the city of Hart. The location of this new development will promote a high quality of place in a walkable community and an expectation of increased economic activity, investment and job creation for the entire area."
Woosley explained that the Housing Credit program is vital to Michigan's economic recovery and reinvention.
"Severe cuts to this program when spending talks come before Congress in March will cripple our efforts to rebuild our state's cities, neighborhoods and urban centers into thriving communities. We intend to do whatever it takes to promote the preservation of the program," Woosley said. "This year alone MSHDA allocated about $35.3 million in 9% tax credits to 37 developments throughout the state, creating 2,982 units of affordable housing. We are working hard to make sure this trend continues in coming years."
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