Affordable Housing Tax Credits 1 |
Previous | 1 of 2 | Next |
|
small (250x250 max)
medium (500x500 max)
Large
Extra Large
large ( > 500x500)
Full Resolution
All (PDF)
|
This page
All
|
Affordable Housing Tax Credits OKLAHOMA HOUSING FINANCE AGENCY OHFA’s Affordable Housing Tax Credits Congress created Affordable Housing Tax Credits in 1986 to offset the high cost of rental housing construction and rehabilitation, and to provide affordable rent rates for low-income families. Tax Credits provide a 10-year reduction in tax liability for developers who construct or rehabilitate affordable rental housing. Tax Credits Facts • Developers sell Tax Credits to Fortune 500 companies and other investors. The money obtained from the sale is used to lower fi nancing costs. The end result is lower rent for families. • Administered by the Oklahoma Housing Finance Agency, the Affordable Housing Tax Credit Program is one of the most closely regulated provisions in the tax code. Tax credit apartments or houses must be rented to persons earning no more than 60 percent of the area median income. Restricted rents are enforced for a minimum of 30 years. • OHFA monitors tax credit developments regularly during the 30-year affordability period for compliance with stringent income, rent and physical condition requirements. OHFA must report noncompliance to the Internal Revenue Service, who can recapture tax credits from noncompliant owners. All developments are monitored a minimum of once every three years by OHFA’s compliance staff. • The private sector discipline imposed on tax credits developments – from initial site selection through years of upkeep and compliance, under threat of severe tax penalty – is an unprecedented departure from all previous federal housing programs. This is a key element in the success of the Affordable Housing Tax Credit Program. Obtaining Tax Credits To obtain Tax Credits in Oklahoma, a development must achieve a higher score than competing developments and must also meet state housing needs. OHFA must limit allocations of tax credits to the amount necessary to make each development fi nancially feasible and viable as affordable housing for the required long-term affordability period. OHFA performs three separate rigorous fi nancial evaluations which analyze sources and uses of funds, other government subsidies, reasonableness of costs, and developer and builder profi ts. For-profi t developers, non-profi t organizations, public agencies, units of local government and tribal governments are eligible to apply for Tax Credits. OHFA has issued more than $70 Million in Tax Credits since 1987, resulting in more than 20,360 apartments and single-family homes. OHFA issues approximately $6.5 million in Tax Credits each year resulting in nearly $110 million of construction activity statewide.
Object Description
Description
Title | Affordable Housing Tax Credits 1 |
Full text | Affordable Housing Tax Credits OKLAHOMA HOUSING FINANCE AGENCY OHFA’s Affordable Housing Tax Credits Congress created Affordable Housing Tax Credits in 1986 to offset the high cost of rental housing construction and rehabilitation, and to provide affordable rent rates for low-income families. Tax Credits provide a 10-year reduction in tax liability for developers who construct or rehabilitate affordable rental housing. Tax Credits Facts • Developers sell Tax Credits to Fortune 500 companies and other investors. The money obtained from the sale is used to lower fi nancing costs. The end result is lower rent for families. • Administered by the Oklahoma Housing Finance Agency, the Affordable Housing Tax Credit Program is one of the most closely regulated provisions in the tax code. Tax credit apartments or houses must be rented to persons earning no more than 60 percent of the area median income. Restricted rents are enforced for a minimum of 30 years. • OHFA monitors tax credit developments regularly during the 30-year affordability period for compliance with stringent income, rent and physical condition requirements. OHFA must report noncompliance to the Internal Revenue Service, who can recapture tax credits from noncompliant owners. All developments are monitored a minimum of once every three years by OHFA’s compliance staff. • The private sector discipline imposed on tax credits developments – from initial site selection through years of upkeep and compliance, under threat of severe tax penalty – is an unprecedented departure from all previous federal housing programs. This is a key element in the success of the Affordable Housing Tax Credit Program. Obtaining Tax Credits To obtain Tax Credits in Oklahoma, a development must achieve a higher score than competing developments and must also meet state housing needs. OHFA must limit allocations of tax credits to the amount necessary to make each development fi nancially feasible and viable as affordable housing for the required long-term affordability period. OHFA performs three separate rigorous fi nancial evaluations which analyze sources and uses of funds, other government subsidies, reasonableness of costs, and developer and builder profi ts. For-profi t developers, non-profi t organizations, public agencies, units of local government and tribal governments are eligible to apply for Tax Credits. OHFA has issued more than $70 Million in Tax Credits since 1987, resulting in more than 20,360 apartments and single-family homes. OHFA issues approximately $6.5 million in Tax Credits each year resulting in nearly $110 million of construction activity statewide. |
Date created | 2013-04-03 |
Date modified | 2013-04-03 |