TAX CREDITS & TAX-EXEMPT BONDS: STATE-BY-STATE PREVIEW

KANSAS

BY JERRY ASCIERTO

AFFORDABLE HOUSING FINANCE • DECEMBER 2007

TOPEKA—The Kansas Housing Resources Corp. (KHRC) has added two new categories to the "priority housing needs" list in its 2008 qualified allocation plan (QAP).

Applications submitted by public housing authorities (PHAs) will be given priority status in 2008. In 2007, only 4 percent of the state’s federal lowincome housing tax credit (LIHTC) reservations went to PHAs, and KHRC is looking to expand its efforts with such agencies in 2008.

The second type of developments given priority in 2008 will be those located in high-growth areas. The aim is to make such projects more competitive in the allocation process. Rural housing is a perennial favorite for LIHTC allocations in Kansas, taking up nearly 60 percent of the state’s 2007 LIHTCs. Developments serving communities of less than 5,000 already receive "priority housing need" points.

In the 2007 QAP, developments could win 15 points for each “priority housing need” met, up to 45 points. That’s a significant consideration given that the maximum number of points a development could win was 310. The 2008 QAP wasn’t final at press time, but the point system is expected to remain the same in 2008.

The agency will have $5.7 million in federal LIHTC authority in 2008. There is no maximum award limit.

Developers requested $19.4 million in LIHTCs in 2007, almost four times the available supply of $5.5 million. In all, 23 projects received 2007 reservations, representing 793 units, of which 712 were tax credit units.

Kansas saw more LIHTC demand for acquisition-rehabilitation developments in 2007. KHRC typically awards between 20 percent and 25 percent of its tax credits to preservation deals, though in 2007 the organization awarded almost 30 percent, or $1.6 million, to such deals.

Seniors housing was also a hot project type, receiving $1.3 million, nearly 24 percent of the state’s LIHTCs.

Overall, the median LIHTC award was $193,110, and the median project size was 24 units in 2007.

Tax-exempt bonds
The amount of tax-exempt bond volume cap available in 2008 was not set at press time, but the Kansas Department of Commerce expects it to be similar to 2007’s total of $256.2 million.

At press time, the state had yet to determine how much would be set aside for rental housing allocations.

The state allocated $61 million to multifamily bonds in 2007 (as of Oct. 10), more than doubling the $30 million available in 2006.

2008 LIHTC PROGRAM: