DOC

Low Income Housing Tax Credit Assistance Program

By Melissa Austin,2014-07-10 01:51
9 views 0
Low Income Housing Tax Credit Assistance Program

ARRA FUNDING PROGRAMS FOR AFFORDABLE HOUSING

    The American Recovery and Reinvestment Act of 2009 (ARRA) has opened up new sources of funding for energy efficiency programs that can be used to improve energy efficiency in affordable housing.

    Low Income Housing Tax Credit Assistance Program (TCAP)

    Low Income Housing Tax Credit Exchange Program (TCE)

    Weatherization Assistance Program

    Public Housing Capital Fund

    Elderly, Disabled, and Section 8 Assisted Housing Energy Retrofits

    Native American Block Grants

    HOME Investment Partnership Program

    Self-help Assisted Homeownership Opportunity Program (SHOP)

    Energy Efficiency and Conservation Block Grant Program (EECBG)

Low Income Housing Tax Credit Assistance Program

    ARRA appropriated $2.250 billion under the HOME Investment Partnerships (HOME) Program heading for a grant program to provide funds for capital investments in Low-Income Housing Tax Credit (LIHTC) projects. The Tax Credit Assistance Program (TCAP) funding is awarded

    by HUD in the form of formula grants to state housing finance agencies (HFAs) for projects that have received an award of Low Income Housing Tax Credits between October 1, 2006, and September 30, 2009. The ARRA specifies that funds be distributed based on FY 2008 appropriations, and that priority be given to projects which are expected to be completed within 3 years. No TCAP funds may be committed to projects before the completion of an environmental review process required by section 288 of the HOME statue.

    State HFAs were required to submit their TCAP applications to HUD by June 4, 2009. The HFA

    TCAP applications describe all project selection criteria and any weights used to award TCAP funds. The project selection process and criteria must be made available to the public and the HFA must accept public comments for at least five days. HUD does not require agencies to amend their QAPs (Qualified Allocation Plans) to allocate these funds. For more information, see HUD’s TCAP Plan and TCAP NOFA.

Low Income Housing Tax Credit Exchange Program

    Through the Tax Credit Exchange Program (TCE), HFAs may elect to exchange up to 40 percent of the 2009 credit allocation and 100 percent of returned credits for grant funds at a rate of 85%

ARRA FUNDING PROGRAMS FOR AFFORDABLE HOUSING

    of the 10 year credit amount. These funds are to be used to finance the construction or acquisition and rehabilitation of qualified (under Section 42 of the IRC) low-income developments. This program allows applicants that received an allocation of 9% LIHTC award from 2007 or 2008 to return allocated credits without penalty. Applicants that returned their 9% tax credits to the HFA and apply for funding under the TCE Program will be required to submit documentation that they have made a good faith effort to syndicate any returned credit reservations on reasonable terms.

Weatherization Assistance Program

    The Weatherization Assistance Program (WAP) allows low income families to apply for

    assistance in weatherizing their homes to increase efficiency and reduce their utility bills. Under ARRA, families with an income of 200% of the poverty level or less now qualify for WAP whereas the cutoff was previously 150%. The assistance provided per home cannot exceed $5,000 on average per state; there is no specific maximum amount of assistance that can be rdprovided per dwelling. These funds were allocated by DOE to the states on March 23, 2009 to

    be distributed to projects which can be started expeditiously. ARRA includes a goal of thdistributing 50% of these funds for projects which can be started by June 17, 2009.

Public Housing Capital Fund

    The Public Housing Capital Fund provides funds for capital and management activities of Public Housing Agencies (PHAs). ARRA appropriated $4 billion for public housing capital funds; at least $3 billion distributed using the same formula as 2008, and up to $1 billion for competitive

    grants for:

    Category 1: Improvements addressing the needs of seniors and people with disabilities with improvements to housing and aid in supportive services. ($95 Million in funds for first round) Category 2: Public Housing Transformation ($100 Million in funds for first round) Category 3: Gap financing for projects that are stalled due to financing issues. ($200 Million in funds for first round)

    Category 4: Creation of energy efficient green communities. ($600 Million in funds for first round)

    The funds being distributed using formulas have been distributed by HUD to PHAs as of March thnd19, 2009. Categories 1-3 of competitive grants can be applied for from June 22, 2009 until thAugust 18 2009 and are distributed on a first come first serve basis, with the first round thaccepting applications until July 6, 2009. Category 4 applications are rated and ranked and will ndstbe accepted from June 22, 2009 until July 21, 2009. Category 4, Option 1 requires single

    family and low-rise new construction to meet Energy Star standards, install Energy Star lighting, and if provided, install Energy Star appliances. The threshold requirements can be seen in the revised HUD NOFA issued June 3, 2009.

ARRA FUNDING PROGRAMS FOR AFFORDABLE HOUSING

Elderly, Disabled, and Section 8 Assisted Housing Energy Retrofits

    ARRA provides $2.5 billion to the Green Retrofit Program (GRP) for Section 202, Section 811,

    and Project Based Section 8. These funds are to be used for projects that include measures to promote energy efficiency and sustainability such as Energy Star appliances and products, insulation, windows, etc. These projects are to be administered by HUD OAHP. Funds can be distributed as either grants or loans of up to $15,000 on an individual project, with an expected thaverage of $10,000. Funds may be applied for any time after June 15, 2009 until funds are

    distributed. Properties that apply for the GRP do not have to refinance, and properties that have already participated in the HUD OAHP Green Initiative or that are described in Section 516(a)(4) of MAHRA are not eligible. More details are available in the GRP NOFA.

Native American Block Grants

    The Native American Block Grants provide funding for new construction, acquisition, and

    rehabilitation. The grants can also be used for energy efficiency and conservation improvements. ARRA appropriated $510,000,000 through NAHASDA, $255,000,000 to be distributed under same formula as 2008, $242,250,000 under competitive grants. Applications for the competitive thgrants must be received by 5pm Mountain Time on July 13 2009. Priority is to be given to

    projects where the contract can be awarded within 180 days of when funds are become available to the recipients, and projects which will spur construction and rehabilitation and will create employment opportunities for low income and unemployed persons. Applications will be ranked on a 100 point system, 7 of which are given for using Energy Star appliances and products and for using Green Development techniques. More information can be found in the Native

    American Block Grants NOFA (Competitive).

HOME Investment Partnership Program

    The HOME Investment Partnership Program provides funds to build, buy, and rehabilitate homes

    for low-income people. ARRA appropriated $1.5 billion, to be distributed under the 2008 formula. These funds are allocated to state and local entities to create affordable housing

    through homeownership or rental assistance for low-income households. Funds are to be distributed by HUD automatically to participating jurisdictions.

Self-help Assisted Homeownership Opportunity Program (SHOP)

    SHOP provides funds to national and regional non-profit organizations to purchase and develop home sites through volunteer labor. ARRA appropriated $10 million with priority given to sustainable, affordable single and multifamily units in low-income, high-need rural areas. Applicants must meet Energy Star construction standards and use Energy Star labeled products and appliances based on the FY08 SuperNOFA. These funds are currently distributed to

    organizations such as Acorn Housing Corporation, Community Frameworks, Habitat for

ARRA FUNDING PROGRAMS FOR AFFORDABLE HOUSING

    Humanity International, Housing Assistance Council, and PPEP Micro Business and Housing Development Corporation.

Energy Efficiency and Conservation Block Grant Program (EECBG)

    The purpose of the EECBG program is to deploy the cheapest, cleanest and most reliable energy efficient technologies in order to reduce fossil fuel emissions, reduce the total energy use, improve energy efficiency in transportation, building, and other appropriate sectors, and to create and retain jobs. Funds can be used for a variety of improvements such as energy efficiency building retrofits, building code development and implementation, installation of renewable energy technologies, implementation of more efficient transportation systems, etc. Of the total $3.2 billion appropriated in the ARRA, $2.7 billion will be issued directly from DOE to states, cities, counties, and Indian tribes as formula grants with the remainder set aside for competitive grants and technical assistance through DOE. The deadline to apply for the formula funds is thJune 25, 2009.

Report this document

For any questions or suggestions please email
cust-service@docsford.com