Low-Income Housing Tax Credits & Opportunity Housing in Missouri, 2018

The 2018 Missouri Qualified Allocation Plan (QAP) targets developments in high opportunity areas that provide social and educational resources to residents. Income, population growth, and housing needs of communities are important factors that MHDC considers when allocating tax credits.

 

Opportunity

Opportunity Areas: MHDC encourages affordable housing developments in opportunity areas by targeting communities that meet the following criteria: access to high-performing school systems, transportation and employment; as well as being located in a census tract with a 15% or lower poverty rate

Family developments that meet these criteria will receive a preference in funding. Family developments proposed in opportunity areas are required to include an affirmative marketing plan that proactively reaches out to families currently living in census tracts where the poverty rate exceeds 40%. The plan must include a Special Marketing Reserve to assist in initial relocation expenses for families with children. Note that the minimum unit size for a family development in an opportunity area is two-bedroom. Developments that apply under this priority must also apply under the Service-Enriched Priority. MHDC will, on a case by case basis with reasonable and well documented justification, allow flexibility for meeting all four criteria for qualification. Please refer to the Market Study Guidelines which specifies how data on each of these criteria is to be collected. Below are examples of services for this type of family development:

a. Regularly-held resident meetings

b. After-school programs for children

c. Financial literacy courses for adults

d. Credit and/or budget counseling

e. Life skills and employment services

f. Computer lab or computer check-out program

g. Daycare services

h. College preparation counseling

i. Library

j. Back to school programs

k. Youth sports activities

l. Teen support groups

m. Good neighbor and tenant rights classes

MHDC seeks to allocate funding to developments that appropriately and efficiently improve their communities. Impact will be influenced by:

  • Elected official and community support. Community support should highlight the importance of the development to the community and the impact it will have.
  • Catalytic effect. Developments that will successfully encourage further development or redevelopment in the community are encouraged, as are developments that are part of a larger community redevelopment effort or part of a concerted community revitalization plan.
  • Community needs. How a development will address the needs of the population and community it intends to serve is important. The existing stock of affordable housing and demographic trends in the area will influence the needs of the community and ability of the development to meet those needs.

MHDC notes that where a development in located affects almost all of the other selection criteria. Important considerations for location include, but are not limited to: 

  • Location in a qualified census tract that will contribute to a concerted community revitalization plan; 
  • Whether existing housing is used as part of a community revitalization plan;
  • Location in a community with demonstrated new employment opportunities and a proven need for workforce housing;
  • Infill of existing stable neighborhoods
  • Commission-designated targeted areas

MHDC considers housing needs when assessing applications for 9% tax credits. As such, developments must address the affordable housing needs of the state, region, and locality where they will be located. Important considerations regarding market need include:

  • Number and growth of population and intended tenant population in the market area;
  • Presence, condition, occupancy, and comparability of other affordable housing developments in the market area;
  • Presence, condition, occupancy, and comparability of market rate housing in the market area;
  • Capture rate for the proposed development; and
  • Housing needs of the special needs population in the market area.

 

Contributed By: 
National Housing Trust

Other Items of Interest