Briefing: Tax Credit Assistance
Gov. Deval Patrick recently announced that the state will devote nearly $45.5 million in federal recovery funds to “jump start delayed affordable housing developments throughout Massachusetts and create hundreds of jobs.” The eight projects to receive funds are ones that were unable to raise enough equity to cover the project development costs.
Where is the money coming from?
The funds are a product of the American Recovery and Reinvestment Act and are issued by the U.S. Department of Housing and Urban Development (HUD) Tax Credit Assistance Program (TCAP).
How were projects chosen?
The eligible applicants were defined by HUD as projects that were awarded tax credits in 2007 or 2008 and were delayed over time due to market conditions. The projects also had to have all financing secured, the construction permits in place, be able to finalize the financing within 120 days and begin the construction process 45 days thereafter.
How is Central Massachusetts affected?
The Shillman House in Framingham will receive $2.8 million and, when finished, will offer 150 units for elderly individuals and couples. Sixty of those units will be rented at market rates and 90 will be reserved for those earning less than 60 percent of area median income. Twenty-five of those reserved units will be held for those earning less than 30 percent of area median income. The project is expected to create about 390 jobs.
Cutler Heights in Holliston will receive $3.9 million and, when finished, will offer 30 units, all affordable to households with incomes below 60 percent of median income. Three of those units will be reserved for households with extremely low incomes (at or below 30 percent of median income). Units will also be available to residents with disabilities. The project is expected to create about 46 jobs.
Where does Massachusetts rank in stimulus funds spending?
As of the middle of August, the Bay State ranked fourth in the nation, having spent $1.5 billion of the $3.3 billion that it was awarded.
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