$95 Million Awarded to North Carolina to Build Affordable Apartments

Stimulus Funds will get already approved projects off the ground in 26 counties

Raleigh, NC – August 27, 2009 – (RealEstateRama) — The U.S. Treasury has awarded $95 million to North Carolina to jump-start stalled development of 36 affordable apartment projects in 26 counties. The North Carolina Housing Finance Agency, which manages the federal housing tax credit program, will provide the funds to 36 rental developments that were awarded tax credits in 2007 and 2008 and applied for the assistance. 

The money – known as “Exchange funds” – was authorized under the American Recovery and Reinvestment Act of 2009 (ARRA) to allow state housing agencies to receive cash grants replacing a portion of the state’s federal tax credit allocation. The 20-year-old federal housing credit encourages private investments to build privately owned rental housing affordable to lower income families. As the contraction of the market has made traditional investors cautious, housing credit projects across the country have been put on hold.

“This money will go to work immediately in communities across the state, creating jobs and affordable housing for North Carolinians,” said Bob Kucab, executive director of the N.C. Housing Finance Agency. “Both are crucial components of our state and national recovery.”

The funds will help finance 2,013 family and senior apartments. Nearly 70 percent (1,393) of the apartments will be for families; the remainder will be for seniors. Ten percent will be reserved for persons with disabilities, affordable to persons living on Supplemental Security Income (SSI) of approximately $660 a month.

All of the apartments will be affordable to North Carolinians whose incomes are at 60 percent or less of the median. This ranges from $46,140 for a family of four in Raleigh to $29,940 in lower income areas such as Robeson or Vance counties.

The $95 million award comes on the heels of $52 million in federal stimulus funds that was awarded two weeks ago to 10 properties in 10 counties under the federal Tax Credit Assistance Program (TCAP). TCAP was another component included in ARRA to help developments get off the ground quickly despite the current difficulties in the tax credit equity market.

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The North Carolina Housing Finance Agency is a self-supporting public agency. It has financed 191,000 affordable homes and apartments in the last three decades, including nearly 80,000 homes for first-time home buyers. To learn more, go to www.nchfa.com or call 919-877-5700 or 800-393-0988.

Contact:
Margaret Matrone, NCHFA, 919-877-5606, mamatrone (at) nchfa (dot) com
Connie Helmlinger, NCHFA, 919-877-5607, cshelmlinger (at) nchfa (dot) com