6 metro-Denver housing projects awarded coveted tax credits

DENVER BUSINESS JOURNAL - Six projects in metro Denver are the recipients of much-coveted low-income housing tax credits that will allow the developers to move forward with building 423 affordable housing units.

Federal low-income housing tax credits, or LIHTCs, are among the most common funding mechanisms for affordable housing in Colorado and the nation, and are available in two different levels. Four percent credits are designed to subsidize about 30 percent of an affordable development's costs, and 9 percent credits generally subsidize about 70 percent of those costs.

In Colorado, the 9 percent credits, administered by the Colorado Housing Finance Authority, are highly sought-after, with demand outpacing the supply of credits by 3.6 to 1 this year.

The federal government provides to states a set amount of 9 percent tax credits every year, based on population, meaning that the amount can only change with a Census. Colorado gets $13 million in 9 percent tax credits every year.

Read more at the Denver Business Journal: http://bit.ly/2d2Cyz0

(© 2016 American City Business Journals. All rights reserved.)


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