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LIHTC Program: The Details PowerPoint Presentation
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LIHTC Program: The Details

LIHTC Program: The Details

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LIHTC Program: The Details

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  1. Housing Solutions: The Low Income Housing Tax Credit (LIHTC) ProgramRobin AmbrozDeputy Director of ProgramsNebraska Investment Finance Authority

  2. Established under the Tax Reform Act of 1986 • An effort to partially privatize the affordable housing industry • Program works by providing investor equity, thus reducing the amount of debt service on a project, allowing lower rents to be charged to tenants while still producing positive cash flow • Provides a dollar-for-dollar reduction in tax liability for owners (and the partners of the owners) LIHTC Program: The Details

  3. Low Income Units: • Rent & Income restricted to a minimum of either • 20% of units at 50% of AMI or • 40% of units at 60% of AMI • Points given in application process for lower income targeting • Affordability Period: • Minimum of 30 years (15-year initial compliance period & 15-year extended use period) • Points given in application process for longer affordability periods Basic Requirements

  4. Project owners are generally Limited Partnerships or Limited Liability Companies • Equity generated from LIHTC typically covers 60-70% of project costs • Sources to fill the gap • HOME Funds • NE Affordable Housing Trust Funds • FHLBank of Topeka • Permanent Loan • Deferred Developer Fee • Additional Equity Contributions How it works

  5. Project Structure

  6. The QAP governs the annual distribution of tax credits. • QAP Process: • Focus Group Meetings • NIFA \ NDED planning sessions • Public Hearing • Board Approval • Governor’s Approval Annual Qualified Allocation Plan (QAP)

  7. Threshold Review (optional) • Applications are reviewed for the threshold requirements • Applicant receives feedback regarding the threshold items in their application. • Final Review • Applicants must meet threshold requirements before the development can be considered for an allocation. • Points awarded for specific items contained in the application. Application Process: Competitive Cycle

  8. CRANE = Collaborative Resource Allocation for Nebraska • Difficult-to-Develop Projects • Negotiated Outcomes \ Individualized timelines • Public Process \ Monthly Meetings • Eligible Project Type: • Housing for individuals with special needs • Must meet all Threshold items & complete entire application Application Process: CRANE

  9. 48 units for individuals with Severe Mental Illness completed in 3 phases • New construction completed in 2003, 2006, and 2012 Cirrus House

  10. 16 Two-bedroom units for men & women in their HERO program • Shared restroom and dining facilities • New construction completed in 2006 • Received allocation for additional 61 units in 2013 Stephen Center

  11. 60 Single Room Occupancy Units for men • Shared restroom & dining facilities • New construction completed in 2008 People’s City Mission: Curtis Center

  12. 14 Efficiency Units for Veterans • New construction completed in 2010 Christian Worship Center: New Visions

  13. 219 units in 3 phases • Single Room Occupancy • One, Two, and Three Bedroom Units • Shared common areas • Serving men, women, and families with children • New construction completed in 2009, 2011, and 2012 Open Door Mission: Rebuilding Lives

  14. 48 One-bedroom units • Shared common space • Single men & women • New construction completed in 2012 Siena / Francis House: Siena / Francis Apartments

  15. Contact Information: Teresa Kile LIHTC Manager teresa.kile@nifa.org Kelly Schultze LIHTC Assistant Manager kelly.schultze@nifa.org Nebraska Investment Finance Authority (NIFA) 1230 ‘O’ Street, Suite 200 Lincoln, NE 68508 402-434-3900 www.nifa.org