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Low income housing developers get city tax credits.

The city has awarded $3 million in federal Low Income Housing Tax Credits for 709 units of housing under a second round of funding.

The Department of Housing Preservation and Development (HPD) announced that, of the 709 units, 646--or 91%--will be affordable to low-income families.

HPD has already awarded a total of $12.47 million in LIHTCs for 50 developments comprising 1,241 apartments under the first funding round for 2006. These credits will help build or rehabilitate affordable apartments across the city.

HPD Commissioner Shaun Donovan said, "This is a great day for low-income families in need of affordable housing, especially the seniors and young people who will specifically benefit from many of the units being funded."

To be eligible for the Low Income Housing Tax Credits, developments must consist of substantial rehabilitation or new construction, with at least 20% of apartments reserved for low-income households. During funding rounds, developers apply competitively to HPD for allocations of tax credits, which are awarded based on selection criteria specified in the City's Qualified Allocation Plan.

The following developments received Low Income Housing Tax Credits under the round announced:

Vicinitas Hall in the Bronx received credits to build 68 low income units including supportive housing to serve 41 young people. The other 27 units will serve low-income families. The project is being developed by the Lantern Group;

Riverdale Osborne Towers in Brooklyn received credits for the acquisition and rehabilitation of four buildings with 524 units, including 463 low-income units. The project sponsor, CPC Opportunity Fund II LLC is financing the project with a combination of Low Income Housing Tax Credits, HPD capital funds and a loan from the Community Preservation Corporation (CPC).

Serviam Gardens in the Bronx received tax credits for new construction of 82 units of federal Housing and Urban Development (HUD) Section 202 housing for seniors. Since 1988, to fulfill its commitment to affordable housing, HPD has allocated $175 million in competitive credits, generating $1 billion in private equity contributions. This has created more than 27,000 units of quality affordable housing.

In the past 13 years, HPD has processed applications for more than $80 million in as-of-right credits for 173 tax-exempt bond financed projects, creating another 11,000 housing units.
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Comment:Low income housing developers get city tax credits.
Publication:Real Estate Weekly
Date:Apr 11, 2007
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