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April 2002

Arkansas Development Finance Authority
423 Main Street, Suite 500
P.O. Box 8023
Little Rock, AR 72203-8023

 

2002 Tax Credit Program
Will Produce 1073 Affordable
Apartments Statewide

More than $5 million in federal low income housing tax credits were allocated to developers of affordable housing which will result in Arkansas gaining 1,073 affordable rental apartments ( 2002 Tax Credit reservation list is on reverse side).

The credits act as a financial incentive for developers and builders to produce affordable housing. Developers are allowed to claim the credits as a dollar-for-dollar deduction on their personal or corporate income taxes for a ten-year period as long as units remain affordable to low-income families for at least 15 years. Developers are allowed to claim the credits themselves, or they can syndicate the credits to investors.

There is a great need for affordable rental housing among Arkansas’ elderly, disabled and families with children. This program enables builders to fill that niche. Developers can use the program to provide apartments at reduced rents without a lot of bureaucratic red tape.

The Tax Credit Program is designed to provide financial incentives that would not otherwise exist when developing affordable rental housing. The tenant benefits from rents that are lower than what would be considered feasible without credits. Rents are set according to federal guidelines.

Laura Tucker, ADFA Multi Family Housing Manager administers the program and reports that developers are already preparing applications for 2003 credits.

Developers interested in being considered for year 2003 credits should contact ADFA for an application. Eligible applicants for tax credits can be for-profit developers or non-profit organizations. Applications and information on the tax credit program is available at www.accessarkansas.org/adfa or by contacting ADFA Multi-Family Housing Section, (501) 682-5900, Monday through Friday, 8:00 AM – 5:00 PM.

Board Actions
(February & March meetings)

ADFA Board of Directors took the following actions during its February and March 2002 board meetings:

n Approved $8.5 million in loans for Farm Fresh Catfish

Company, Inc. located in Lake Village, AR.

n Approved $300,000 in HOME funds for homeowner loan subsidies in Crawford and Sebastian counties.

n Approved the issuance of up to $30 million in tax-exempt Single Family Revenue Bonds to finance loans through ADFA’s HomeToOwn Loan Program.

n Approved $235,200 in HOME Program funds to the Bentonville Housing Authority for Tenant-Based Rental Assistance.

n Approved the issuance of $7.5 million in Tax-Exempt Multi-Family Housing Bonds for ChapelRidge Apartments of Benton, AR. The funds will be used to construct a 160 unit complex for families of modest income.

n Approved the issuance of $4.4 million in Tax-Exempt Multi-Family Housing Bonds for the acquisition and rehabilitation of the 128 unit Briarwood Apartment complex located in Fort Smith, AR.

n Gave contingent approval to Wes-Pac Inc. for a bond guarantee in the amount of $780,000 for the

acquisition, expansion and renovation of its current

building located in Little Rock, AR.

n Gave contingent approval to Arkansas Glass

Container Corporation for a bond guarantee in the amount of $4,600,000 for equipment, installation and modernization of its plant located in Jonesboro, AR..

nApproved the following HOME Program projects:

*City of Jericho received $300,000 for Homeowner Rehabilitaion projects located in Jericho, AR.

*Eastern Arkansas Community Outreach received $300,000 for Homeowner Rehabilitation projects located in Anthonyville, AR.

*Faith Reach Out Ministries, Inc. received $204,263 for Rental Reconstruction in Lakeview, AR.

*White River Regional Housing Authority received $242,220 in Tenant Based Rental Assistance in

Batesville, AR.

*East Arkansas Strategic Planning Initiative received $300,000 for Rental Reconstruction in Monroe,

Prairie, and Woodruff counties.

2002 ADFA Tax Credit Recipients

*MF = Multi-Family

Organization Project Type Location #Units Credits Awarded

NON-PROFIT

ARC of Arkansas MF Acquisition/Rehab Little Rock 43 $300,000 Federal $60,000 State

AR Land & Farm Development MF New Construction Marianna 34 $300,000 Federal

In-Affordable Housing MF New Construction & Pine Bluff 40 $298,170 Federal MF Acquisition/Rehab

NW Regional Housing Dev. Corp. MF Acquisition/Rehab Harrison 64 $112,236 Federal

AR Land and Farm Development MF New Construction Palestine 18 $33,965 Federal

Leisure Home Corp. MF New Construction Mountain Home 36 $53,563 Federal

Southern Community Dev. Corp. MF New Construction Dewitt 20 $48,161 Federal

Sunbelt Dev. Corp. MF Acquisition/Rehab Forrest City 45 $140,540 Federal

Seaside Development Corp. MF Acquisition/Rehab Calico Rock 29 $64,552 Federal

Shady Creek Apts. of Foreman LLC MF Acquisition/Rehab Foreman 24 $76,938 Federal

DCP Development, LLC MF Acquisition/Rehab Grady 16 $41980 Federal

ASSISTED LIVING

White River Area Agency on Aging MF New Construction Batesville 40 $282,600 Federal

NON-PROFIT

Senior Living L.P. MF Acquisition/Rehab Hot Springs 64 $300,000 Federal $60,000 State

Arrington Development, LLC MF New Construction West Memphis 60 $300,000 Federal $60,000 State

Tri-Park, LLC MF New Construction Conway 40 $281,041Federal

Arrington Development, LLC MF New Construction Lincoln 32 $262,732 Federal $17,454 State

ERC Development Group, LLC MF New Construction Forrest City 68 $294,038 Federal $17,454 State

Leisure Home Corp. MF New Construction Mountain Home 50 $299,628 Federal

Reality Advisor, Inc. MF New Construction North Little Rock 56 $300,000 Federal

KRR Construction, Inc. MF New Construction Pine Bluff 72 $300,000 Federal

RichSmith Development, Inc. MF New Construction Lake Hamiltion 96 $300,000 Federal

Arrington Development, LLC MF New Constuciton Alma 56 $300,000 Federal

Leisure Home Corp. MF New Construction Cotter 16 $101,860 Federal

Leisure Home Corp. MF New Construction Lowell 24 $63,180 Federal

FORWARD COMMITMENTS

Unified C.D.C. MF Acquisition/Rehab Little Rock 30 $143,769 Federal