NY awarded $253M through housing tax credit program - Dallas Business Journal:

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is one of the companies that will benefit from an infusionm of federal stimulus money into a tax credit program that subsidizes constructio ofaffordable housing. U.S. Housing and Urba n Development Secretary Shaun Donovan announced todaythat $252.7 million has been awarded to New York through the federa government’s new $2.25 billionh Tax Credit Assistance Program. The moneyg will enable the state to resume funding the construction or renovation of affordablwe rentalhousing units. Omni Housinf is among the companies that rely on the sale of low incom housing tax credits to investors to help payconstructionb costs.
The demand for tax credits in the statde and nationwide has eroded because of the credit crisis. Before the credit freezde hit, banks and other lenders such as and used the credit s to reduce their federaltax Now, with bank profits much slimmer, therd is less need for the tax credits. “The market is in disarray,” said Duncanj Barrett, chief operating officer at Omni a divisionof Inc. Construction and renovation project s have been jeopardized as the value of the tax credits As manyas 1,000 projects containing nearlhy 15,000 housing units are on hold across the country, accordingv to HUD.
For instance, Omni Housingg has received two written offers to purchase tax creditd foran $11 million renovation of 100 garden-styl e public housing apartments in The offers are 70 cents or 72 cents for every $1 of tax credit. The low price would creat a gapin funding, makingb the project unworkable. Omni is seekingt $2.4 million through the Tax Credit Assistance Program to fillthe gap, Barretft said. “What the TCAP fundzs are doing is plugging the hole that has been created by the lack of tax credig investors and the falling pricee forthose investors,” Barrett HUD estimates the new program will provide affordablew housing to 35,000 households nationwide.
Omni has redeveloped 1,170 affordabld housing units in the Albany region over the past 10 mostly for municipalhousinbg authorities. Omni manages some of thosde units and provides property management supportto others.