Housing News

The Missouri Housing Development Commission approved 24 low-income housing projects financed by $380 Million in state and federal tax credits. A significant share of the awards was received by the developers making large political donations to officers.

Out of the approved projects, 19 projects will be financed by a 9% tax credit and the other five will get a 4% credit. In total, the commission approved $173.5 million in federal 9% tax credits and $121.4 million in state tax credits, with different maturity periods spanning over a decade. Additionally, these projects secured an additional $24 million in funding from other sources.

The projects will provide 1532 new housing units such as studio apartments and four-bedroom family homes in communities upon completion. 

The commission released the scores that determined which applications were funded only for the second time in its entire history. The Executive Director revealed that scores are not the only measure but its staff’s analysis also. 

The tax credit allocations are divided by the commission among four regions of the state. The three projects were funded by 9% credit. 

The credits were awarded to seven applications from rural areas and four were from smaller regions. 

The commission received an update on previously sanctioned projects, which have faced challenges due to inflation causing cost increases and rising interest rates reducing the value of the tax credits. 

Developers exchange these credits for cash to fund their projects but at a discounted value due to the extended time it takes for redemption. Out of the 25 projects approved in 2021, five have not yet finalized their financing arrangements, and from the 28 projects approved the previous year, only four have successfully closed their deals.