City of Gainesville - File #: 150288.

• File #: 150288.
• Version: 2
• Type: Staff Recommendation
• Status: Passed
• File created: 8/25/2015
• In control: City Manager
• On agenda: 10/1/2015
• Final action: 10/1/2015
• Title: Local Government Contribution to Gainesville Housing Authority for an Affordable Housing Project (B) This item is a request to the City Commission to approve the Gainesville Housing Authority’s request for a local government contribution, as required by the Florida Housing Finance Corporation Universal Cycle Tax Credit Program, to develop an affordable housing project.

Date	Ver.	Action By	Action	Result
10/1/2015	2	City Commission	Approved as Recommended
9/3/2015	1	City Commission	Heard

Title
Local Government Contribution to Gainesville Housing Authority for an Affordable Housing Project (B)

This item is a request to the City Commission to approve the Gainesville Housing Authority’s request for a local government contribution, as required by the Florida Housing Finance Corporation Universal Cycle Tax Credit Program, to develop an affordable housing project.

Explanation
This item supports City Commission Strategic Initiative 6.1: Ensure the quality and broad distribution of affordable housing throughout the City.

At the September 3, 2015 City Commission Meeting, the Gainesville Housing Authority (GHA) requested that the City provide a local contribution of $37,500 to allow the GHA to apply to the Florida Housing Finance Corporation (FHFC) Universal Cycle Tax Credits Program (File Number: 150288). At that meeting, the City Commission approved the GHA’s funding request in concept; and directed staff to come back with a recommendation and an identified funding source for the affordable housing project.

The Universal Cycle Tax Credit Program (Program) provides for-profit and nonprofit organizations with a dollar-for-dollar reduction in federal tax liability in exchange for the acquisition and substantial rehabilitation, substantial rehabilitation, or new construction of low and very low income rental housing units. Since these tax credits can be worth millions of dollars, receiving this funding can determine whether or not an affordable housing project is developed in cities and counties across the State of Florida. The FHFC uses a competitive application system to determine which projects are awarded the tax credits to a housing project. Part of that system awards points to projects that meet certain criteria as established by the FHFC. Those criteria include affordability, sustainability, and serving an identified housing need.

The use of tax credits subsidizes the cost of developing housing units, thereby producing decent, safe, and af...