Recovery Act awards address low-income housing tax credit financing gaps

Salem, OR – September 2, 2009 – (RealEstateRama) — Governor Ted Kulongoski announced awards totaling close to $19 million in American Recovery and Reinvestment Act (Recovery Act) funds that will aid the completion of seven low-income housing projects. The Oregon Department of Housing and Community Services (OHCS) administers the federal Low Income Housing Tax Credit Program for the state and will lead the implementation of these funding sources.Recently approved by the State Housing Council, these awards will result in the development, acquisition and rehabilitation of 272 multifamily housing units throughout Oregon.

“These funds are targeted to restart projects that have been stalled because of this economic downturn creating jobs and affordable housing across Oregon,” Governor Kulongoski said. “This Recovery Act funding both stimulates the economy and helps those in need.”

Projects approved Friday, August 28, for Recovery Act funding are:

• Crest Butte Apartments of Bend, Oregon, $3,825,731 for acquisition and rehabilitation of 52 affordable housing units.
• Seacrest Apartments of Bandon, Oregon, $1,655,486 for acquisition and rehabilitation of 20 affordable housing units.
• Linnhaven/Stonebrook Apartments of Sweet Home, Oregon, $3,074,905 for acquisition and rehabilitation of 51 affordable housing units.
• Parkside Village of Roseburg, Oregon, $4,760,164 for acquisition and rehabilitation of 36 affordable family housing units.
• Walnut Park of Portland, Oregon, $798,236 for acquisition and rehabilitation of 38 affordable housing units.
• Upshur House of Portland, Oregon, $3,022,152 for acquisition and rehabilitation of 30 affordable housing units.
• Roosevelt Crossing of Eugene, Oregon, $2,587,976 for new development of 45 homeless affordable housing units.

The funding for these awards are derived from the Tax Credit Assistance Program (TCAP) and the Tax Credit Exchange Program, both of which are components of the Recovery Act, signed by President Obama in February of 2009.

The Act allocates monetary assistance in lieu of tax credits to fill equity and capital investment gaps that have threatened the financing of formerly approved low-income housing developments across the nation. The U.S. Treasury has implemented the Exchange Program while the Department of Housing and Urban Development oversees TCAP.

Housing Council Chair Maggie LaMont extolled the job creation potential of the TCAP and Exchange approvals: “This stimulus money is soon to be in the pipeline, and I am excited about the results ahead as we see jobs created and Oregonians housed.” LaMont is also executive director of the Northeast Oregon Housing Authority, headquartered in La Grande.

The TCAP awards include part of the competitive portion of $27.3 million in federal funds allocated to the state by HUD, announced June 30, 2009, for low-income housing projects in Oregon that have been troubled by capital investment gaps.

Oregon Housing and Community Services estimates the Exchange Program proceeds could be as high as $49.9 million if the equity investment market does not improve soon. OHCS will also make reservations of TCAP and Exchange funding in late September 2009 for up to 19 remaining projects that have already applied through a competitive process.  

“Our work in getting these resources reserved and allocated as soon as possible will provide safe, affordable housing while creating or retaining jobs throughout the state,” OHCS Director Victor Merced said. “We see this as a significant tool in stimulating the state’s economy and taking care of our most vulnerable populations.”

Both the TCAP and Exchange Program are temporary. Their implementation will end in 2012 and 2011, respectively. By design, these two programs help stabilize the low-income housing tax credit market which has been hard hit by diminishing or complete lack of capital for investment in affordable housing projects.

Oregon Housing and Community Services 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 serving Oregonians of lower and moderate income, and administers federal and state antipoverty, homeless, energy assistance and community service programs.
Go to http://www.ohcs.oregon.gov/.

Contact:   
Mariana Negoita, 503-986-0968, mariana.negoita (at) state.or (dot) us
David Summers, 503-986-2073, david.summers (at) state.or (dot) us
Floyd Smith, 503-986-6747, floyd.smith (at) state.or (dot) us