Arkansas Development Finance Authority Awards $7.5 Million in Low Income Housing Tax Credits
(LITTLE ROCK) – The Arkansas Development Finance Authority (ADFA) Board of Directors, on Thursday, July 20, 2023, awarded more than $7.5 million in 10-year federal Low Income Housing Tax Credits (LIHTC) to 9 developments as part of its 2023 allocation round. These developments will contain 499 units of affordable housing for Arkansas families, seniors, and people with disabilities.
In addition to federal LIHTC’s, ADFA loaned $15,771,000 in federal HOME Program funds.
Low Income Housing Tax Credits and HOME Investment Partnerships Program funds, as primary ADFA funding sources, create affordable rental housing by providing funding and tax incentives that help developers build or rehabilitate properties for Arkansas’s low-income families.
Developers and their investment partners claim tax credits over a 10-year period to offset the costs associated with construction or rehabilitation of a housing development. In exchange for the credits, owners must maintain rents that are affordable and limit occupancy to households earning less than 60 percent of the area median family income.
“ADFA is working to ensure Arkansans have access to safe, affordable places to call home,” said ADFA President Mark Conine. “The Low Income Housing Tax Credit Program is a great example of how public and private dollars can serve Arkansans and benefit the overall economic health of our 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. Developers awarded LIHTCs sell them to investors and use the proceeds as financing for their property. The credits are designed to cover approximately 70 percent of each property’s eligible development costs.
Applicants receiving 2023 commitments are (listed in alphabetical order):
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Development: Bluffs at Shackleford
Developer: Phillips Development Corp.
County: Pulaski
Units: 61
LIHTC: $1,000,000
HOME: $1,300,000
Development: Loraine Park of Lowell
Developer: Leisure Homes
County: Benton
Units: 60
LIHTC: $899,213
HOME: $3,000,000
Development: McAuley Place
Developer: Strategic Realty Advisors
County: Benton
Units: 60
LIHTC: $960,000
HOME: $1,980,000
Development: Sager Creek Crossing II
Developer: Upward Housing Group
County: Benton
Units: 40
LIHTC: $620,000
HOME: $1,515,000
Development: Spavinaw Creek Senior
Developer: Upward Housing Group
County: Benton
Units: 40
LIHTC: $620,000
HOME: $1,560,000
Development: Stone Ridge at Springdale
Developer: RichSmith Development, LLC
County: Washington
Units: 72
LIHTC: $1,000,000
HOME: $1,900,000
Development: Villas at Spring Valley
Developer: Phillips Development Corp
County: Lonoke
Units: 46
LIHTC: $700,000
HOME: $1,320,000
Development: Vineyards at Cabot II
Developer: Garth Development, LLC
County: Lonoke
Units: 48
LIHTC: $784,000
HOME: $1,320,000
Development: Vineyards at Little Rock
Developer: Garth Development, LLC
County: Pulaski
Units: 72
LIHTC: $1,000,000
HOME: $1,876,000
TOTALS
UNITS: 499
FEDERAL LIHTC: $7,583,213
HOME: $15,771,000
About the Arkansas Development Finance Authority
ADFA is the state's largest source of low-cost financing for low-to-moderate income housing development, small industries, government, education, and healthcare. Through the issuance of taxable and tax-exempt bonds and notes, the administration of private and public grants and partnerships with state and federal agencies, ADFA gives Arkansans the most cost-effective financing choices possible. For more information about funding opportunities, or services in your area, please visit https://adfa.arkansas.gov , https://homeloans.arkansas.gov , https://asla.info .