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Housing Solutions: The Low Income Housing Tax Credit (LIHTC)
Program
Robin AmbrozDeputy Director of Programs
Nebraska Investment Finance Authority
LIHTC Program: The DetailsLIHTC 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)
Basic RequirementsBasic 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
How it worksHow 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
Project Project StructureStructure
Annual Qualified Annual Qualified Allocation Plan (QAP)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*Governor’s Approval
Application Process: Application Process: Competitive CycleCompetitive 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.
Application Process: CRANEApplication 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
Cirrus HouseCirrus House*48 units for individuals with Severe Mental Illness completed in 3 phases
*New construction completed in 2003, 2006, and 2012
Stephen Center 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
People’s City Mission: Curtis People’s City Mission: Curtis CenterCenter*60 Single Room Occupancy Units for men
*Shared restroom & dining facilities
*New construction completed in 2008
Christian Worship Center: Christian Worship Center: New Visions New Visions
*14 Efficiency Units for Veterans
*New construction completed in 2010
Open Door Mission: Open Door Mission: Rebuilding Lives 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
Siena / Francis House: Siena / Francis House: Siena / Francis Apartments Siena / Francis Apartments *48 One-bedroom units*Shared common space*Single men & women
*New construction completed in 2012
Contact Information:
Teresa KileLIHTC Manager
Kelly SchultzeLIHTC Assistant [email protected]
Nebraska Investment Finance Authority (NIFA)1230 ‘O’ Street, Suite 200
Lincoln, NE 68508402-434-3900www.nifa.org
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