Affordable housing developers get one shot a year to request a reservation of tax credits for their project(s) in the competitive tax credit application round. That shot was earlier this month, on March 4th. This year the ratio of tax credits requested to tax credits available is 1.99:1 as reported by the Virginia Housing Development Authority (VHDA).
In the 2016 competitive application round there were:
- 58 applications submitted (a few more than last year’s 50)
- $16,574,533 in tax credit dollars available
- $32,998,652 in tax credit reservation dollars requested
But affordable housing developers can’t buy two-by-fours with tax credits. They need capital. Investors that wish to reduce their tax liability provide these developments the capital they need. That’s the beauty of the LIHTC program. It provides the critical financing needed to address the shortage of affordable rental housing available to low-income residents across the U.S. VCDC plays an important role in connecting investors seeking tax shelter to developments needing capital.
VCDC excels in navigating the waters of this complex application process. Developers, new and experienced, frequently find themselves overwhelmed by the comprehensive application process. Over the past 26 years, VCDC has assisted in preparing countless tax credit applications. Requesting credits requires completing a 28-page application plus dozens of supporting documents. Our experienced staff can help even very seasoned veteran developers to gain every edge they can in a very competitive application process.
Final rankings are expected to be announced by VHDA May 25, 2016. To see the list of the 2016 Low-Income Housing Tax Credit Reservation Applications visit: www.vhda.com
VCDC wishes good luck to all of this year’s applicants.
Affordable Housing Awareness Week
While we wait for the results of the competitive tax credit application process to be announced, there’s plenty to keep us busy in April. April is all about affordable housing. Here at VCDC, everyone is gearing up for another season of giving back to the communities we serve. We turn our focus from tax credit equity to sweat equity.
April is a busy month, no fooling! It’s National Volunteer Month, kicking off with National Volunteer Week beginning April 10th. But hold on to your work hats, because the month of giving is just getting going! Affordable Housing Awareness Week begins April 24th. The grand finale, on Saturday, April 30th, is National Rebuilding Day.
VCDC will participate again this year in Rebuilding Together Richmond’s “Blitz Build.” VCDC has adopted a home in the 2016 chosen community of Jefferson Davis Corridor. Throughout the month of April, VCDC will shine the light on Affordable Housing and bring you reports on what we’re doing and what our partners are doing to promote the development of innovative, affordable housing across our Commonwealth.