The Michigan State Housing Development Authority has published a draft implementation plan for the new low-income housing tax credit exchange program and gap financing program (Tax Credit Assistance Program) established by the American Recovery and Reinvestment Act (ARRA). The preliminary plan details four key program areas:

  • 9% Tax Credit Assistance Program (TCAP) will provide funding support for applicants seeking awards of 2009 LIHTC ceiling;
  • 9% Tax Credit Assistance Program will allow sponsors with an unsyndicated 9% LIHTC award from 2007 or 2008 to return their credits and apply for direct funding from the Authority in lieu of syndication of those credit awards;
  • 4% Tax Credit Assistance Program will provide gap financing resources for proposals seeking 4% LIHTC and tax exempt financing from the Authority; and
  • Michigan’s Affordable Housing Reinvestment and Innovation Program will, subject to compliance with federal regulations, provide funding to reinvest in existing affordable multifamily housing developments across the state whose viability is threatened, to invest in additional production under the three programs outlined above, or to invest in other innovative efforts to improve the viability of the state’s affordable housing stock.

The Authority plans to hold a hearing on April 13th in Lansing to accept public feedback.  read more…