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Arkansas Development Finance Authority
 

Press Release
 

    For Immediate Release

    May 17, 2013

    Contact: Public Information Officer Derrick Rose – 501-692-5904

Funding Approved to Build or Renovate 602 Affordable Rental Units

Thursday afternoon the Arkansas Development Finance Authority awarded $7,248,907 in federal low-income housing tax credits (LIHTC), another $250,000 in state tax credits,

$4,269,300 in federal HOME program funds and $2,026,000 in mortgage settlement funds to help in the construction or renovation of 14 affordable rental developments located throughout Arkansas.

Because federal tax credits are taken over a 10 year period of time, the award represents a financial incentive of over $70 million to developers and builders to produce affordable rental housing in Arkansas. The funds will be used to build or renovate 602 affordable rental housing units for families, individuals and persons with special support needs in Arkansas and help provide greater housing choice and opportunity for low-income households.

Projects are structured so that the sale of a projects housing tax credits and other tax benefits provides a source of capital for the development of affordable rental housing.  The amount of federal tax credits listed is received each year for the first 10 years of a projects operating period.  For example, a $500,000 reservation results in a total tax credit award of $5 million. 

 

The equity investment reduces the need for financing thereby reducing operating costs, which is passed along in the form of reduced rents.

The following developments were awarded a combination of federal LIHTC, state LIHTC, HOME Program Funds, and national bank mortgage settlement funds:

Congressional District 1

Development & City                            LIHTC                    HOME                 Mortgage Settlement Funds                 # Units

Rolling Hills, Paragould                      $485,430- Federal  $0                         $450,000                                              32

 

Riverside Park, West Memphis          $600,000- Federal   $450,000               $0                                                       56

$120,000 – State

 

Villas II, West Memphis                      $625,000 – Federal   $450,000             $0                                                       50

                                                            $125,000

 

Parkwood, Hoxie                                $177,833 – Federal   $219,300             $0

 

 

Congressional District 2

 

Development & City                            LIHTC                     HOME                Mortgage Settlement Funds                  # Units


Cottages at Conway,
Conway            $600,000 - Federal   $900,000           $0                                                       50

Peaks at Searcy, Searcy                      $600,000 - Federal   $450.000          $0                                                       40

 

Villas of Searcy, Searcy                      $600,000 - Federal    $450,000          $0                                                       52

 

 

Congressional District 3

Development & City                            LIHTC                     HOME                 Mortgage Settlement Funds                  # Units

Hillside, Flippin                                   $522,634-Federal   $450,000               $0                                                        48

Majestic View, Mountain View           $600,000 -Federal   $0                        $450,000                                              40

 

Congressional District 4

 

Development & City                            LIHTC                     HOME                 Mortgage Settlement Funds                  # Units

Deer Run, Hamburg                            $206,,083 -Federal   $0                       $226,000                                             25


Garden Walk, Ozark                          $406,927-Federal   $0                          $450,000                                              44

 

Legacy at El Dorado, El Dorado        $600,000 -Federal   $0                          $450,000                                             50

 

Lofts, Texarkana                                 $625,000 –Federal  $900,000               $0                                                        46
                                                                 $5,000-State      

 

Preston, Magnolia                               $600,000-Federal  $0                          $0                                                        40

ADFA administers the state HOME Program, Low Income Housing Tax Credit Program, and $9 million the State of Arkansas received as part of the national bank mortgage settlement to finance affordable housing in partnership with local governments, nonprofit organizations and for-profit developers.

 

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