Utah Housing awards $31 million in tax credits

Utah Housing Corp. said this week that more than $31 million in federal and state low-income housing tax credits were awarded for 700 affordable housing units across the state.

The units are targeted to lower-income families earning 36 percent to 60 percent of the area median income.

The federal program was established in 1987 to promote private sector investment in the development and rehabilitation of rental housing for lower-income households. Tax credits supply the project owners a dollar-for-dollar reduction in income tax liability. More than $580 million in federal credits have been allocated by UHC in the past 16 years. Credits reduce the amount of money developers need to borrow so rents can be lowered to an affordable level.

In 1995, the Utah Legislature authorized the issuance of state credits to be awarded in conjunction with federal credits to further aide in the creation of much needed affordable housing. More than $22 million in state credits have been awarded since that time.

The combined effort has produced more than 13,500 multi- and single-family affordable housing rental opportunities in Utah.

For 2004, UHC received more than $46 million in federal tax credits and $618,000 in state credits that will be awarded in three rounds. The next applications for projects applying for bonds and 4 percent credits are due March 19 and for 9 percent credits are due April 6. Details are available from Robin Kemker at 1-801-323-2602 or www.utahhousingcorp.org.