For Release: Immediately
Contact: Nona Robinson,
Multi-Family Housing Officer, 501. 682.5927
Derrick Rose, ADFA Communications Manager, 501.682.5904
ADFA Awards Over $52 Million in New Recovery Funds
The Arkansas Development Finance Authority (ADFA) Board of Directors approved $52,464,522 million in American Recovery and Reinvestment Act (ARRA) funds to finance 18 affordable housing developments that are scheduled to begin construction in 2010. These funds will be used to help bridge the financial gap necessary to put the development of affordable housing back on track in Arkansas and help to create or preserve 935 rental residences for low and very low income households across the state.
Over the past 20 years, the traditional method for stimulating the development of affordable housing throughout the United States has been the low income housing tax credit. Investors purchase these credits and the money is used to raise capital for the construction and operation of affordable housing development. Due to market conditions, the value of these credits has dropped considerably in the past two years and investors have mostly abandoned the affordable housing tax credit market and put a stop to many housing developments. It is only with the use of ARRA program funds that affordable housing developers are now able to put feasible financing packages together and move ahead with new construction or rehabilitation projects.
The following two programs are being used to stimulate affordable housing nationwide and here in Arkansas: the Section 1602 Tax Credit Exchange Program allows the U.S. Treasury to purchase returned tax credits that would remain unsold and the Tax Credit Assistance Program (TCAP) that provides additional funding to ensure developments have sufficient funds to provide needed quality affordable housing. Today the authority approved $40,451,469 in Section 1602 Tax Credit Exchange Program funds and another $12,013,053 million in Tax Credit Assistance Program funds.
Additionally, $2 million in Federal HOME Program funds
were awarded to four developments as another source of gap financing.
See attached for a list of developments and their locations.
Press Releases / Home Page