For Release: Immediately
Contact: Derrick Rose, ADFA Communications Manager, 501.529.1633
Stacey Hall, Deputy Spokesperson, Office of Governor Mike Beebe, 501.683.6407
Recovery Funds to Help Affordable Housing Get on Track in Arkansas
The Arkansas Development Finance Authority (ADFA) Board of Directors approved over $60 million in American Recovery and Reinvestment Act (ARRA) funds to restart 20 affordable housing developments that were stalled in 2007 and 2008, due to rising costs and the troubled housing market. These funds are necessary to help bridge the financial gap and put developments back on track, helping to create or preserve 728 rental residences for 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. The value of these credits has dropped considerably over the past two years, and most investors have abandoned the affordable housing tax credit market, putting a stop to many housing developments already approved and ready to build.
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 otherwise remain unsold. The Tax Credit Assistance Program (TCAP) provides additional funding to ensure that developments have sufficient funds to provide needed quality affordable housing. Today, the authority approved $52 million in Section 1602 Tax Credit Exchange funds and another $8.45 million in TCAP funds.
See attached list of developments and their locations.
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