The Department of Housing and Urban Development announced it is approving plans for $1 billion in Tax Credit Assistance Program (TCAP) funds to 26 state housing finance agencies to jump-start stalled low-income housing tax credit (LIHTC) projects. This is the first round for the program.
TCAP was created under the American Recovery and Reinvestment Act, which provides $2.25 billion under the grant program to help fill financing gaps in LIHTC deals.
The economic crisis has put a chill on the LIHTC investment market, with the department estimating as many as 1,000 projects on hold.
The housing finance agencies set to receive TCAP funds in the initial round are in Arizona, Arkansas, Connecticut, Hawaii, Idaho, Illinois, Iowa, Michigan, Minnesota, Mississippi, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oregon, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Vermont, Washington, and Wisconsin.
For more information, visit www.hud.gov.