Low Income Housing Tax Credits & Opportunity Housing Alaska, 2018-2019

     The Alaska Housing Finance Corporation awards points for projects located in areas with lower unemployment, strong rental market, and higher growth rates.

Opportunity

Up to 15 points for projects located in areas of low unemployment:

Unemployment exceeds the state average by more than 5%: 0 points

ii. Unemployment is no more than 5% above the state average: 4 points

iii. Unemployment is no more than 3 % above the state average: 8 points

iv. Unemployment is no more than 1% above the state average: 10 points

v. Unemployment at least equal to the state average : 12 points

vi. Unemployment is 2.5% or more below the state average: 15 points

 

Developments will be scored using the annual unemployment rate reported by the State of Alaska Department of Labor and Workforce development for the most recent year.

 

Rental Market Strength (up to 15 Points) – Project must be located in a city, borough or census area covered by the Department of Labor Survey used to generate the Rental Market Indicators. If the proposed project is not located in a city, borough or census area covered by the Department of Labor Survey, the vacancy rate will need to be determined through a market study using the same methodology employed by the Department of Labor in their survey.

 

Project is located in a survey area with vacancy rates exceeding 12% – 0 points

 

i. Project is located in a survey area with vacancy rates of at least 9%, but no more than 12% – 2 points

ii. Project is located in a survey area with vacancy rates of at least 7%, but less than 9% – 6 points

iii. Project is located in a survey area with vacancy rates of at least 6%, but less than 7% – 10 points

iv. Project is located in a survey area with vacancy rates of at least 4%, but less than 6% – 13 points

v. Project is located in a survey area with vacancy rates lower than 4% – 15 points Page 32 of 54 c.

 

Location Trends (up to 15 Points) - Points will be awarded based on the average growth rates over the most recent three-year period using City and Census Designated Place data. These data are reported on the State of Alaska’s Department of Labor and Workforce Development website. Points will be awarded based on the average of three-year growth rates for communities with populations of 6,500 or more. In cases where the community population is less than 6,500, points awarded will be based on the lesser of (1) the average growth rate for the specific community and (2) the average three-year growth rate for the borough or census area associated with the community. In cases where the population for the borough or census area associated with the community is less than 6,500, eight (8) points will be awarded IF the average three-year growth rate for the community is above 0%. For proposals located in Palmer or Wasilla, the proposal will receive points based on the combined populations for those two communities, and their collective growth rates. Using the above parameters, points will be assigned as follows:

 

i. Population growth in the city, borough or census area over the past three years is greater than or equal to 2.0%: 15 points

ii. Population growth in the city, borough or census area over the past three years is at least 1.25% but less than 2.0%: 12 points

iii. Population growth in the city, borough or census area over the past three years is at least 0.5% but less than 1.25%: 10 points

iv. Borough or census area population is less than 6,500, but the population growth over the past three years is greater than 0%: 8 points

v. Population growth in the city, borough or census area over the past three years is greater than 0% but less than 0.5%: 6 points

vi. Population growth in the city, borough or census area over the past three years is less than or equal to zero, but greater than -0.5%: 4 points

 Community Revitalization Plans/Distressed Communities

Project is located in a Qualified Census Tract (as defined by HUD, under 42(d)(5)(c)) and is considered to contribute to a community revitalization plan (see definition of “community revitalization plan”) (1 Point)

Contributed By: 
National Housing Trust

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