The next major milestone for Piedmont Housing Alliance and the continuing progress towards Friendship Court redevelopment is submitting the application for the highly competitive Low-Income Housing Tax Credit (LIHTC) program.
The U.S. Treasury Department sponsors the LIHTC program and it is administered at the state level by the Virginia Housing Development Authority (VHDA). The program helps fund the development of affordable rental housing across the country by providing federal income tax credits that can be sold to corporations with large tax burdens. The sale proceeds then directly subsidize construction costs, ensuring long-term affordability.
The LIHTC program application is due March 14. The full 2019 application schedule is available to view. According to Housing and Urban Development (HUD), the LIHTC program “gives State and local LIHTC-allocating agencies the equivalent of nearly $8 billion in annual budget authority to issue tax credits for the acquisition, rehabilitation, or new construction of rental housing targeted to lower-income households.”
Recognizing the importance and competitiveness of this funding, we have pulled together a well-seasoned and insightful team of consultants to help craft the lengthy application, including representatives from Klein Hornig, Virginia Commonwealth Development Corp., Joseph Browne Development Associates, and our partner NHT Communities.
Why is this so important for the redevelopment of Friendship Court? The LIHTC funding is the critical funding that tips the scale. As part of the LIHTC application, the resident-elected Advisory Committee and Piedmont Housing had to make a series of important final decisions for Phase 1 including finalizing the number of new apartment-style and townhome-style homes, the interior layout of the apartments, materials to be used on the exterior of the buildings, etc.
The LIHTC funding submission is just one update that you will hear from us this year. Looking ahead, we also have plans to install a new temporary “Tiny Office” to provide a new Economic Opportunity Coordinator a space to begin work with the residents at Friendship Court.
Currently, Piedmont Housing Alliance does not manage Friendship Court, but that is scheduled to change in May. We are working closely with current property manager, Edgewood Management, on the transition. Stay tuned for more information on the coming change.