Low Income Housing Tax Credits & Preservation in Alaska, 2018-2019

The Alaska Housing Finance Corporation prioritizes preservation through point incentives 

 

·      Point Incentives

Rehabilitation Project : Two points will be awarded to all projects involving rehabilitation. For the purpose of this section, rehabilitation, at minimum, must consist of some sort of building renovation and / or demolition and reconstruction where a building is currently located at the project site. If AHFC, in its sole discretion, finds that a deminimus amount of demolition took, or is scheduled to take, place at the project site to qualify for points under this section, no points will be awarded.

Six points will be awarded if the project will convert a non-affordable property to affordable housing or a nonsenior property to senior housing.

·      Thresholds

Under the LIHTC program, there is a minimum rehabilitation cost. The rehabilitation costs must be the greater of $25,000 per unit or 10% of the “adjusted basis” of the building and must consist of work items that are more than just cosmetic in nature and include only physical items. Soft costs and financing costs may not be used to calculate the minimum rehabilitation cost.

Year 15: Qualified Contracts

One (1) point will be awarded to applications that commit the project to an extended low-income use equaling 30 years. An extended use agreement or other similar agreement, as determined to be appropriate by AHFC, is required. LIHTC project sponsors that elect points under this category will forfeit their ability to pursue termination of the extended use period through a qualified contract.

 

Contributed By: 
National Housing Trust

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