Housing Tax Credits

What the Program Does:

Enacted in the Tax Reform Act of 1986, the Housing Tax Credit (HTC) is designed to secure private equity capital for the development of affordable rental housing. The HTC can provide as much as 55%-60% of the total development cost, which reduces the amount of debt financing in affordable rental housing developments. This allows lower rents and greater affordability.

The HTC is an excellent community investment tool. It is responsible for the development of more than 24,000 units in Kansas. The KHRC has authority to allocate approximately $50 million of ten year credits each year.

Who the Program Helps:

Program benefits are widespread. Developers obtain funding to supplement a primary loan for the development. Investors receive a return on their investment in the development. Renters have access to affordable housing. Communities achieve added housing stock with an enhanced tax base to further their economic and community development efforts.

How It Works:

The HTC is an annual tax credit allocation for ten years. The amount of the credit is based upon a percentage of the eligible basis for a qualified development. Up to nine percent of the project basis per year can be allocated to rental housing projects that have no other source of federal financing. Some types of federal financing may reduce the credits available to four percent.

The credit is sold to an investor for approximately $.75-$.80 on the dollar. This provides the developer with equity to complete the development and the investor receives the tax benefits of the credit for ten years after the units have been occupied.

Type(s) of Assistance:

-Grants

Funding Cycle:

The KHRC conducts two allocation cycles each year. Applications are due approximately February 3rd and July 1st of each year with awards being announced in May and September, respectively.

Eligible Entities:

Non-profits and for-profit developers are typical applicants.

Key Statistics for 2004:

The KHRC allocated $55,448,980 housing tax credits, generating an estimated investment of $86,000,000.

Pursuant to Internal Revenue Code Section 42, the Kansas Housing Resources Corporation has been notified by the property owners, that the certain properties are nearing completion of the required compliance period and are available for purchase.

Contact Information:

Fred Bentley
Rental Housing Director
611 S. Kansas Avenue, Suite 300
Topeka, Kansas 66603-3803
Phone: (785) 296-3724
Fax: (785) 296-8985

Related Programs:

Housing Tax Credit Compliance
HOME Rental Development
Private Activity Bond Allocation

More Program Info

Properties for Sale Under the Qualified Contract Regulations

HTC Program: Guide for the Development of
Rental Properties

HTC Program Forms

HTC Related Links

KHRC HTC Contact List (being updated)

HOME Rental Development

2009 HTC Allocations

2010 HTC Reservations

Credit Exchange Program Allocations

TCAP Allocations