State to Gain More Than $300 Million in Affordable Apartments

Tax credit development expected to support 6,900 jobs

July 6, 2011 – (RealEstateRama) — Federal tax credits and other financing awarded last week to build affordable apartments is expected to support 6,900 jobs statewide. More than $300 million in development will result from the federal tax credits, bonds, and loans approved by the Tax Reform Allocation Committee and the North Carolina Housing Finance Agency.

“The development of these properties will keep thousands of North Carolinians working in construction and related industries during a difficult economic time,” said N.C. Housing Finance Agency Chairman Sam Ewell. “These affordable apartments provide housing opportunities for working families and seniors, improve communities, and build local tax bases.”

The new awards will produce 2,452 privately owned, privately-managed affordable apartments in 26 counties, bringing the total number of Housing Credit apartments built in the state since 1987 to more than 56,000 units. Forty-two percent of the recently approved apartments (1,042 units) will be designated for families, and 1,409 units will house elderly residents. [Editor: A list of housing developments by county is enclosed.]

In addition to the federal tax credits, 12 of the apartment developments will receive loans totaling $9.5 million approved by the N.C. Housing Finance Agency’s board of directors. The loans make it possible to produce apartments in rural counties where incomes are low, and help to reduce the rents in urban counties.

All of the apartments are affordable at 60 percent or less of median income, and many are affordable at 50 percent or 40 percent of median due to the additional financing. For a family of four, this ranges from $47,280 (60 percent in Wake County) to $19,800 (40 percent in low-wealth counties, such as Vance or Wilkes).

The new developments will include 203 apartments for persons with disabilities. These apartments will be affordable to persons living on Supplemental Security Income (SSI) of approximately $660 a month.

The N.C. Housing Finance Agency evaluates the tax credit applications on behalf of the Tax Reform Allocation Committee, which consists of Secretary of Commerce J. Keith Crisco, State Treasurer Janet Cowell and State Budget Officer Andy Willis. The evaluation includes independent market studies of each property and site visits by agency staff. Each property is rated for architectural design, rent affordability, financial stability, capability of the development team, and criteria to ensure statewide distribution.

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The North Carolina Housing Finance Agency is a self-supporting public agency. It has financed 201,000 homes and apartments in the last three decades, including 84,000 homes for first-time home buyers. To learn more, go to www.nchfa.com or call 919-877-5700 or 800-393-0988.

Consumer Contact: Counseling Agencies or 1-888-623-8631

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