ADFA Board approves $10.6 million in Low Income Housing Tax Credits to expand housing options for income-eligible Arkansans
Credits to help finance construction or rehabilitation of 11 affordable housing developments
Little Rock, August 20, 2019 - The Arkansas Development Finance Authority (ADFA), a division of the Arkansas Department of Commerce has announced awards through the 2019 Low Income Housing Tax Credit (LIHTC) Program that will help finance the development of rental properties offering reduced rents and increased housing options.
ADFA will provide $10.6 million in housing tax credits to private developers constructing or rehabilitating 11 properties across the state that will offer rents affordable to households earning up to 60 percent of the area median family income.
“ADFA’s multifamily financing remains an important component to ensuring our expanding workforce has adequate, high quality housing in which to live,” said ADFA President Bryan Scoggins. “The Low Income Housing Tax Credit Program is a remarkable example of how public and private dollars can serve all Arkansans and benefit the overall economic health of our state.”
The credits are expected to help finance the building of 9 high quality, new properties with a total of 650 units, and the rehabilitation of 2 properties offering 141 units to income-eligible households across the state.
The Low Income Housing Tax Credit Program, authorized under the Internal Revenue Code, is the state’s primary means of directing private capital toward the development of affordable rental housing. Investors purchase credits allocated to developers to which they may apply toward their federal tax liability each year for 10 years on a dollar-for-dollar basis in exchange for their investment in the property.
Developers use proceeds from the sale of the credits as financing for their property. The credits announced today are designed to cover approximately 70 percent of each property’s eligible development costs. See attached PDF for a list of approved properties.