Delaware News

DSHA Announces Preliminary Low-Income Housing Tax Credit Allocation

Delaware State Housing Authority | Date Posted: Tuesday, July 11, 2023


Rental interior

Approximately $3 Million To Build and Restore Affordable Rental Housing in Delaware

Dover, Del. July 12, 2023 – The Delaware State Housing Authority (DSHA) announced its preliminary project award rankings for the 2023 Low-Income Housing Tax Credit (LIHTC) allocation last week.

The LIHTC was created in 1986 to encourage private/public investment to preserve and construct affordable rental housing nationwide. Alone and combined with tax-exempt private activity bonds, the LIHTC has been the most productive source of affordable housing financing in the nation’s history. 

Three development projects were awarded $3 million in 10-year federal LIHTCs this year. Recipients were selected based on criteria outlined in DSHA’s Qualified Allocation Plan, which include rent price, location, accessibility, and more. All projects must meet program requirements by the end of the year to receive a formal reservation of tax credit investments.

Project Name Project Type Project County # of Units
Chapel Branch Apartments New Construction – Family Sussex 35 LIHTC

7 Market
Cheer Gateway East New Construction – Senior Sussex  59 LIHTC
George Read Village Preservation – Family/Senior New Castle 72 LIHTC

 

Developers claim tax credits over ten years, which allows them to balance the construction or rehabilitation costs incurred during the rental housing development. All buildings financed with the LIHTC must remain affordable and in compliance with other program policies for a minimum of 30 years. 

DSHA receives an annual tax credit amount and awards credits annually through a competitive process. The equity raised through the tax credit investment allows developers to attract the additional financing needed to create or restore low-income rental housing.

“DSHA is consistently and aggressively adding new affordable rental units to Delaware’s housing stock,” said Eugene Young, Jr., Director of DSHA. “The development of these communities will transform the lives of families and seniors and bring us one step closer to solving the housing crisis in our state.”

DSHA has administered LIHTC since 1987, adding more than 10,000 affordable units to the state’s housing inventory. For more information please visit: http://destatehousing.com/Developers/dv_lihtc.php.

 

About the Delaware State Housing Authority

The Delaware State Housing Authority (DSHA), formed in 1968, provides quality, affordable housing opportunities and appropriate supportive services to low- and moderate-income Delawareans. In addition to its role as the State’s Housing Finance Agency, DSHA is unique because it serves as a Public Housing Authority in Kent and Sussex County and a Community Development and Planning Agency. For more information about the Delaware State Housing Authority, please call: (302) 739-4263 or visit our website at www.destatehousing.com.

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DSHA Announces Preliminary Low-Income Housing Tax Credit Allocation

Delaware State Housing Authority | Date Posted: Tuesday, July 11, 2023


Rental interior

Approximately $3 Million To Build and Restore Affordable Rental Housing in Delaware

Dover, Del. July 12, 2023 – The Delaware State Housing Authority (DSHA) announced its preliminary project award rankings for the 2023 Low-Income Housing Tax Credit (LIHTC) allocation last week.

The LIHTC was created in 1986 to encourage private/public investment to preserve and construct affordable rental housing nationwide. Alone and combined with tax-exempt private activity bonds, the LIHTC has been the most productive source of affordable housing financing in the nation’s history. 

Three development projects were awarded $3 million in 10-year federal LIHTCs this year. Recipients were selected based on criteria outlined in DSHA’s Qualified Allocation Plan, which include rent price, location, accessibility, and more. All projects must meet program requirements by the end of the year to receive a formal reservation of tax credit investments.

Project Name Project Type Project County # of Units
Chapel Branch Apartments New Construction – Family Sussex 35 LIHTC

7 Market
Cheer Gateway East New Construction – Senior Sussex  59 LIHTC
George Read Village Preservation – Family/Senior New Castle 72 LIHTC

 

Developers claim tax credits over ten years, which allows them to balance the construction or rehabilitation costs incurred during the rental housing development. All buildings financed with the LIHTC must remain affordable and in compliance with other program policies for a minimum of 30 years. 

DSHA receives an annual tax credit amount and awards credits annually through a competitive process. The equity raised through the tax credit investment allows developers to attract the additional financing needed to create or restore low-income rental housing.

“DSHA is consistently and aggressively adding new affordable rental units to Delaware’s housing stock,” said Eugene Young, Jr., Director of DSHA. “The development of these communities will transform the lives of families and seniors and bring us one step closer to solving the housing crisis in our state.”

DSHA has administered LIHTC since 1987, adding more than 10,000 affordable units to the state’s housing inventory. For more information please visit: http://destatehousing.com/Developers/dv_lihtc.php.

 

About the Delaware State Housing Authority

The Delaware State Housing Authority (DSHA), formed in 1968, provides quality, affordable housing opportunities and appropriate supportive services to low- and moderate-income Delawareans. In addition to its role as the State’s Housing Finance Agency, DSHA is unique because it serves as a Public Housing Authority in Kent and Sussex County and a Community Development and Planning Agency. For more information about the Delaware State Housing Authority, please call: (302) 739-4263 or visit our website at www.destatehousing.com.

image_printPrint

Related Topics:  , , ,


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.