California Announces Stimulus Awards
More than $310 million in federal stimulus money will go toward reviving 31 “shovel-ready” affordable housing developments, announced California Treasurer Bill Lockyer today.
The developments will create 2,015 affordable apartments and about 5,000 jobs across the state.
“Getting these funds out the door is vital to repairing California’s economy,” Lockyer said in a statement. “By reviving these projects, we’ll create needed affordable housing for working Californians and their families, and we’ll help put people back to work.”
The California Tax Credit Allocation Committee, chaired by Lockyer, approved the awards to help move forward stalled low-income housing tax credit projects.
Developers sell the tax credits to investors to raise money for their affordable housing deals. However, the market has been in a deep slump with fewer investors and lower prices.
This year’s American Recovery and Reinvestment Act (ARRA) authorized CTCAC and other state tax credit agencies to swap unused credits for cash at a rate of 85 cents per $1 of credit. The ARRA also made another $2.25 billion in gap financing available.
Although the tax credits are distributed over 10 years, the exchange funds will be awarded in lump sum. Developers could have the cash in hand in as few as 60 days, according to California officials.
Additional exchange funds are expected to be distributed at the August and December CTCAC meetings. Applications are due July 9 and Nov. 10.
For more information, visit www.treasurer.ca.gov/ctcac.
The developments will create 2,015 affordable apartments and about 5,000 jobs across the state.
“Getting these funds out the door is vital to repairing California’s economy,” Lockyer said in a statement. “By reviving these projects, we’ll create needed affordable housing for working Californians and their families, and we’ll help put people back to work.”
The California Tax Credit Allocation Committee, chaired by Lockyer, approved the awards to help move forward stalled low-income housing tax credit projects.
Developers sell the tax credits to investors to raise money for their affordable housing deals. However, the market has been in a deep slump with fewer investors and lower prices.
This year’s American Recovery and Reinvestment Act (ARRA) authorized CTCAC and other state tax credit agencies to swap unused credits for cash at a rate of 85 cents per $1 of credit. The ARRA also made another $2.25 billion in gap financing available.
Although the tax credits are distributed over 10 years, the exchange funds will be awarded in lump sum. Developers could have the cash in hand in as few as 60 days, according to California officials.
Additional exchange funds are expected to be distributed at the August and December CTCAC meetings. Applications are due July 9 and Nov. 10.
For more information, visit www.treasurer.ca.gov/ctcac.
posted by Donna Kimura at 4:55 PM
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