DOVER—The entire low-income
housing tax credit (LIHTC) program here will focus on
rehabilitating existing affordable housing in 2008. "We
have our heart set on preservation," said Lisa McCloskey, a
housing mortgage finance officer for the Delaware State
Housing Authority (DSHA).
Nearly 1,800 subsidized apartments in Delaware will have
the option of leaving their affordable housing programs by
2012, more than seven times the current demand for new
affordable apartments in Delaware, according to a report
commissioned by DSHA.
The agency will set aside more than $1.6 million of its
$2 million in 2008 LIHTCs for preservation developments
from all over the state, eliminating Delaware’s
two geographic set-asides. The remaining tax credits will
be split between projects developed by nonprofits and
projects to house the homeless, according to
DSHA’s proposed qualified allocation plan, which
officials expect to finalize in February.
Those numbers don’t leave much room to build
affordable housing from scratch, which typically requires
LIHTC reservations larger than $200,000 because of the high
cost of land and new construction, said McCloskey.
Delaware’s preservation goals fit well with
another state plan to promote green affordable housing
designed to conserve resources, including building
materials, because rehabilitation re-uses entire buildings.
Since 2006, applications for LIHTCs have had to meet
Delaware’s green building standards to
The four projects that won 2007 LIHTCs include three
rehabilitation deals. Only two of those will preserve
existing affordable housing. The third will turn an
existing building into housing for the homeless.
A fourth project to build 44 new apartments won a
reservation of $524,000 in LIHTCs—a high price for
a new construction project, McCloskey said.
DSHA received applications for $2.2 million in LIHTCs
this year, and made a total of $2 million in
No help from bonds
Neither new construction projects or preservation deals
will get any help from tax-exempt bond financing in 2008.
DSHA has no plans to use any taxexempt bond cap for rental
housing because the deals are not financially feasible,
according to the agency.
“The bond issuance costs will kill
you,” McCloskey said. “You can’t
do a deal.”
2008 LIHTC PROGRAM:
- 2008 LIHTC authority (est.): $2
- Application deadlines: April 8,
- Web: www.destatehousing.com