Housing Solutions: The Low Income Housing Tax Credit (LIHTC) Program Robin Ambroz Deputy Director of Programs Nebraska Investment Finance Authority

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Housing Solutions The Low Income Housing Tax
Credit (LIHTC) ProgramRobin AmbrozDeputy
Director of ProgramsNebraska Investment Finance
Authority
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LIHTC Program The Details

• 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)

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Basic Requirements

• 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

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How it works

• 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

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Project Structure
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Annual Qualified Allocation Plan (QAP)

• The QAP governs the annual distribution of tax
  credits.
• QAP Process
• Focus Group Meetings
• NIFA \ NDED planning sessions
• Public Hearing
• Board Approval
• Governors Approval

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Application Process Competitive Cycle

• 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.

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Application Process CRANE

• 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

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Cirrus House

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

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Stephen Center

• 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

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Peoples City Mission Curtis Center

• 60 Single Room Occupancy Units for men
• Shared restroom dining facilities
• New construction completed in 2008

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Christian Worship Center New Visions

• 14 Efficiency Units for Veterans
• New construction completed in 2010

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Open Door Mission Rebuilding Lives

• 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

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Siena / Francis House Siena / Francis
Apartments

• 48 One-bedroom units
• Shared common space
• Single men women
• New construction completed in 2012

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• Contact Information
• Teresa Kile
• LIHTC Manager
• teresa.kile_at_nifa.org
• Kelly Schultze
• LIHTC Assistant Manager
• kelly.schultze_at_nifa.org
• Nebraska Investment Finance Authority (NIFA)
• 1230 O Street, Suite 200
• Lincoln, NE 68508
• 402-434-3900
• www.nifa.org