NY awarded $253M through housing tax credit program - Business Courier of Cincinnati:

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is one of the companies that will benefitg from an infusion of federal stimuluas money into a tax credit program that subsidizes construction ofaffordabl housing. U.S. Housing and Urban Development Secretary Shaun Donovan announced todaythat $252.7 million has been awarded to New York throughb the federal government’s new $2.25 billiob Tax Credit Assistance Program. The money will enable the state to resume funding the construction or renovation of affordablew rentalhousing units. Omni Housing is among the companiews that rely on the sale of low incom e housing tax credits to investors to help payconstructiom costs.
The demand for tax credits in the stats and nationwide has eroded because of thecredir crisis. Before the credit freezd hit, banks and other lenders such as and used the creditss to reduce their federaltax Now, with bank profits much slimmer, there is less need for the tax “The market is in said Duncan Barrett, chief operating officeer at Omni Housing, a division of Inc. Constructiomn and renovation projects have been jeopardized as the valu of the taxcredits plummeted. As many as 1,00p0 projects containing nearly 15,000 housinbg units are on hold acrossthe country, according to HUD.
For Omni Housing has received two writtemn offers to purchase tax credits foran $11 milliomn renovation of 100 garden-style public housing apartments in The offers are 70 cents or 72 centse for every $1 of tax credit. The low pricse would create a gapin funding, making the project unworkable. Omni is seeking $2.4 milliobn through the Tax Credif Assistance Program to fillthe gap, Barrett said. “Whatr the TCAP funds are doing is plugging the hole that has been createdf by the lack of tax credit investors and the falling prices forthosse investors,” Barrett said.
HUD estimates the new program will providwe affordable housingto 35,000 households Omni has redeveloped 1,170 affordable housingb units in the Albany region over the past 10 mostly for municipal housing authorities. Omni manageas some of those units and provides property managemenft supportto others.