BISMARCK, ND – December 9, 2008 – (RealEstateRama) – More than $2.4 million worth of federal tax credits will be available to support affordable housing development in 2009 through the Low Income Housing Tax Credit (LIHTC) program, administered by the North Dakota Housing Finance Agency (NDHFA). The State Industrial Commission approved the LIHTC plan on November 24, 2008.
“The LIHTC program provides help for our efforts to develop affordable housing for those who need it, and we’re pleased to approve the new plan,” said Governor John Hoeven.
Property owners typically get credits based on the amount of capital invested in a project and the level of commitment to low-income tenancy. During the upcoming year, NDHFA will have the authority to provide up to a 30 percent increase in credits to projects that address targeted needs. The Agency will only allocate the amount of credits necessary to make a property financially feasible.
“Many areas of the state lack sufficient affordable housing due to economic growth, or the difficulty of developing in rural areas,” said Attorney General Wayne Stenehjem. “To ensure that these issues are addressed, applications are ranked based on priorities identified in the state’s allocation plan.”
NDHFA’s plan specifically targets projects that preserve existing affordable housing; are marketed to special needs households; or are located in rural areas and on Indian Reservations.
“In 2007, the agency began encouraging the incorporation of green building practices into local developments,” said Agriculture Commissioner Roger Johnson. “Maximum points in the green building category will now be offered to projects that obtain one of three nationally recognized certifications.”
In exchange for the credits, property owners rent the units to households with incomes below the 60 percent federal median income limits. The LIHTC program allows these property owners to charge rents that are generally lower than would be feasible without the credits.
The allocation plan and applications are available by contacting NDHFA or visiting their website . The deadline to apply for the credits is Feb. 27, 2009. A second round of applications may be accepted if insufficient applications are received in the first round. The application deadline for the second round will be April 30, 2009.
“Since the LIHTC program was created in 1986, $24 million in tax credits have been allocated for the production or rehabilitation of 176 projects in 38 communities, producing more than 5,000 units dedicated to low-income renters, and creating more than $360 million dollars in capital improvements in North Dakota properties,” said Mike Anderson, NDHFA executive director.
The Industrial Commission of North Dakota, consisting of Governor John Hoeven, as chairman, Attorney General Wayne Stenehjem and Agriculture Commissioner Roger Johnson, oversees NDHFA. For more information, contact the agency at (701) 328-8080, (800) 292-8621 or (800) 366 6888 (TTY).
