Jefferson City -- The Missouri Housing Development Commission approved funding for 43 affordable housing developments for fiscal year 2000 during its regular monthly meeting Feb. 25 in Jefferson City.

MHDC administers rental housing production programs, including the federal and state Housing Tax Credits. Rental production programs also consist of MHDC fund balances and federal HOME funds. Tax credits are a reduction in tax liability allocated to a qualified development, which are generally sold to create equity. Affordable rental rates are made possible with low interest rental housing production loans and housing tax credits. At least 15 percent of the HOME funds are set aside to finance Community Housing Development Organization (CHDO) proposals. At least 10 percent of tax credits must be set aside for nonprofit organizations.

This year's funding includes:

$7,000,000 MHDC Loans
$10,183,000 Federal HOME loans
$2,205,000 Federal HOME Community Housing Development Organization funds

The Commission also allocated more than $13.4 million in Low-Income Housing Tax Credits.

$6,750,000 Federal Low-Income Housing Tax Credits
$6,750,000 Missouri State Low-Income Housing Tax Credits

The 43 developments will create 848 new affordable housing units and rehabilitate an additional 541 units throughout the state. The units include 1,022 family units and 367 units designated for the elderly.

These developments are located in areas throughout the state, with some in areas that had not received funding in recent years, such as Poplar Bluff and East Prairie, according to Bob Holden, Missouri State Treasurer and MHDC Commissioner. "We were very pleased to fund proposals in areas that have a great need for new affordable housing, as well as to help rehabilitate housing in other communities."

The funding process began when the MHDC staff received 119 proposals in response to a Notification of Funding Availability published in August. Four proposals were later withdrawn from consideration by the developers or did not meet application requirements.

Each proposal was underwritten to assess the details, ensuring the development is a good risk. This requires reviewing the land, construction costs, equity, funding source and operational details. It also includes evaluating credit-worthiness, the ability of the developer or organization to proceed with the work, and the appropriate rents for the units.

MHDC staff has made personal visits to all the sites and held public hearings in January on the proposals. Comments were also requested from local and state elected officials and federal and state agencies regarding the proposed developments.

The proposals recommended to the Commission for approval represent a fair geographic distribution across the state, concentrating on areas of highest need; the sponsor's ability to leverage funds with other conventional or government sources of financing; the experience of the developer and associated professionals; the reasonableness of the development costs and rents; and readiness of the developer to proceed.

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