WASHINGTON (August 18, 2017) – (RealEstateRama) — The Department of Housing and Community Development (DHCD) has identified a limited amount of federal and state Low Income Housing Tax Credit (LIHTC) and state bond funds that could be made available competitively to certain highly ready projects before the end of 2017. Because of the great demand for new, family housing, projects must represent affordable or affordable/mixed-income family housing that meet the definition of production in the 2017 Qualified Allocation Plan (QAP). Also, in order to best leverage state resources, projects must be supported by significant levels of local matching funds.
At the conclusion of the winter 2017 funding competition, DHCD noted that several family housing projects that did not receive funding were highly ready to proceed. While denied funding for reasons other than readiness, their sponsors had also achieved significant commitments of local or private funds. DHCD believes that the sponsors of these projects can rapidly address their remaining issues and present applications to receive funding so that the projects may proceed.
Therefore, in view of the great demand for affordable and affordable/mixed-income family rental housing in Massachusetts, and in view of the relative strength of several projects that have been reviewed but not funded, DHCD is amending the 2017 QAP to facilitate a Mini-Competition in October 2017.
The resources to be made available are the following:
9% LIHTC: up to $3 million
State LIHTC: up to $8 million
DHCD Subsidy Funds: up to $20 million
DHCD will accept pre-applications on September 22, 2017. For projects approved at pre-application, DHCD will accept modified OneStop+ funding applications on or before October 31, 2017. Following a public hearing on September 7, 2017, to amend the 2017 QAP, DHCD will provide interested sponsors with the list of One Stop + sections and exhibits that must be updated for an October 31 submission to the Department.
The Department anticipates selecting four to six projects in the October mini-competition. Sponsors whose projects do not meet the pre-application criteria or who are not selected at the conclusion of the October 2017 mini-competition will be able to submit applications during the full competition in February 2018.
For more information on the Mini-Competition, please click here (link is external).