Salem, OR – June 30, 2009 – (RealEstateRama) – The U.S. Department of Housing and Urban Development (HUD) today approved Oregon’s Tax Credit Assistance Program (TCAP) application, awarding $27.3 million in federal funds to strengthen affordable housing projects throughout the state.
“Many affordable housing projects were severely impacted when the nation’s economy worsened,” Gov. Ted Kulongoski said. “These federal economic stimulus dollars will cover the remaining financing gaps that will move these projects forward, developing critical housing for low-income Oregonians and creating jobs in communities throughout the state.”
TCAP, a HUD program, was created by the federal American and Reinvestment Act of 2009 (ARRA) to support capitalization of affordable housing tax credit projects experiencing diminished tax credit value.
Stalled projects that received awards of federal low-income housing tax credits in federal fiscal years 2007, 2008 and 2009 are eligible to participate in this federal capital investments subsidy program.
Sponsors of eligible housing projects may apply through a competitive process that examines remaining financial gaps and readiness to proceed. The process is administered by Oregon Housing and Community Services (OHCS), the state agency that manages the low-income housing tax credit program and finances low- and moderate-income housing throughout the state.
“We are pleased that HUD has approved our application and look forward to putting these funds to the best possible use in meeting critical affordable housing needs across the state,” Rick Crager, OHCS deputy director, said. “The sooner these projects can be built, the sooner communities will benefit from the resulting construction activity and the sooner families in need will have stable affordable housing.”
“The funding for these projects will come from a variety of public and private sources, Crager added, “and the TCAP stimulus funds will provide the last piece of the financial puzzle for many projects.”
OHCS is the direct grantee for TCAP and the associated ARRA Tax Credit Exchange Program. The state agency is responsible to implement and oversee deployment of these ARRA resources in Oregon. The implementation plan for TCAP and the exchange program are available on the OHCS Web site.
An application for these funds is currently under development by OHCS and is expected to be issued on the agency’s Web site in the coming weeks. OHCS will hold a training session on completing the application and will provide additional assistance about eligible uses of these funds during the training.
Projects will be evaluated by OHCS based on their financial need, project readiness, investment availability, populations served, and other criteria as outlined in the state plan. The evaluation of projects will continue throughout the summer. TCAP will sunset February 16, 2012.OHCS is the state’s housing finance agency and community services program administrator. The department provides financial and program support to create and preserve opportunities for quality, affordable housing for Oregonians of lower and moderate incomes. OHCS also administers federal and state anti-poverty, homeless, energy assistance and community service programs. For more information, visit our Web site at www.ohcs.oregon.gov.
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