Arkansas Development Finance Authority
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 atwww.accessarkansas.org/adfa or by contacting ADFA Multi-Family Housing Section, (501) 682-5900, Monday through Friday, 8:00 AM – 5:00 PM.
(February & March meetings)
ADFA Board of Directors took the following actions during its February and March 2002 board meetings:
nApproved $8.5 million in loans for Farm Fresh Catfish
Company, Inc. located in Lake Village, AR.
nApproved $300,000 in HOME funds for homeowner loan subsidies in Crawford and Sebastian counties.
nApproved the issuance of up to $30 million in tax-exempt Single Family Revenue Bonds to finance loans through ADFA’s HomeToOwn Loan Program.
nApproved $235,200 in HOME Program funds to the Bentonville Housing Authority for Tenant-Based Rental Assistance.
nApproved 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.
nApproved 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.
nGave 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.
nGave 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
*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
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
White River Area Agency on Aging MF New Construction Batesville 40 $282,600 Federal
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
Unified C.D.C. MF Acquisition/Rehab Little Rock 30 $143,769 Federal