TENTATIVE SCHEDULE FOR AWARDING LOW INCOME HOUSING TAX CREDITS ANNOUNCED

LANSING – Interim Executive Director of the Michigan State Housing Development Authority (MSHDA) Keith Molin today announced a tentative schedule to award approximately $16 million in Low Income Housing Tax Credits (LIHTC) in early fall. The federal LIHTC program allocates incentives to developers to propose low-income housing projects in accordance with guidelines published in a Qualified Allocation Plan (QAP) originated at the state level.

“A tentative time frame has been agreed upon internally that target the week of June 2 to get board approval of the QAP and to acquire authorization from the administration signaling a go-ahead to the actual funding round,” Molin said. “It is our intention that the tax credit funding round will happen by the end of September or early October.”

Molin stressed that as it comes together, the QAP must reaffirm three policy commitments on the part of the Authority, the administration and state government in general.

“Support for affordable housing in Michigan is an important part of our goal, and we must make certain that we are providing housing for the special needs and homeless populations,” Molin said. “Additionally, our efforts must make a positive contribution to the development of vibrant communities around the state.

An outside consulting firm was engaged by MSHDA first to review the document and now to work with staff in pursuit of getting a QAP that allows the Authority to complete the one round of federal tax credit funding remaining for this year.

“It is going to require effort, skill, and possibly some temporary adjustments in personnel assignments to make this happen,” Molin explained. “But we think we can make it with a little flexibility along the way. It is better that we go on record committed to resolving these issues with a tentative time frame than none at all.”

MSHDA is a quasi-state agency that provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, and address homeless issues.  MSHDA’s loans and operating expenses are financed through the sale of tax-exempt and taxable bonds and notes to private investors, not from state tax revenues. For more information on MSHDA programs and initiatives, visit the Web site at www.michigan.gov/mshda.