For More Information, Call: Derrick Rose, 501.682.5904
For Release: Immediately
LITTLE ROCK, ARKANSAS -------- The Arkansas Development Finance Authority (ADFA) announced today that more than $5 million in federal low income housing tax credits were allocated to developers of affordable housing which will result in Arkansas gaining 1073 affordable rental apartments (Note: 2002 Tax Credit reservation list is attached).
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.
“The housing tax credit program works,” said Mac Dodson, ADFA president. “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 through the Authority’s web page 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.
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