Title
Award of the Low-Income Housing Tax Credit Project (B)
This item requests the City Commission to consider approving the use of ConnectFree Program funding to assist an Affordable Rental Housing Project.
Explanation
On May 20, 2021, the City Commission adopted Resolution #201230 amending and restating Resolution #160146. These resolutions govern the City’s ConnectFree Program (Program), which generates revenue from surcharges collected on new water and wastewater connections in the unincorporated part of the GRU service area. The primary purpose of that revenue is to subsidize new extensions and connections throughout the GRU Service Area. Additionally, that resolution identifies several activities that the ConnectFree Program may fund, including, local government contribution to affordable housing development projects leveraged with federal/state low-income housing tax credits.
The Low-Income Housing Tax Credit (LIHTC) Program provides for-profit and nonprofit organizations with a dollar-for-dollar reduction in federal tax liability in exchange for: 1) the acquisition and substantial rehabilitation; 2) substantial rehabilitation; or 3) new construction of low, very low, and extremely low income rental housing units. These tax credits can be worth millions of dollars, and as such, receiving them is often required to build affordable housing. Therefore, projects that receive this funding can help cities/counties reach their goals for the development of affordable rental housing. In essence, the use of tax credits subsidizes the cost of developing housing units, thereby producing decent, safe, and affordable housing available to low-income households.
The Florida Housing Finance Corporation (FHFC) is essentially a department of the State of Florida and administers the Program. The FHFC awards tax credits to affordable housing projects based on a competitive application system. Part of that system awards points to projects that meet certain criteria ...
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