In today’s lean economic times, nonprofits must make a number of strategic moves to keep affordable housing initiatives moving and viable. At CHBA, we address this challenge by
- Securing competitive Low Income Housing Tax Credit (LIHTC) equity;
- Assembling resources from governments at the local, state, and federal level;
- Negotiating project-based financing agreements with multiple private financial institutions and investors.
Below are a few examples of the financial awards we’ve received as a result of our creative partnerships.
California Tax Credit Allocation Committee (CTCAC)
All CHBA properties have been awarded by CTCAC LIHTC equity, a dollar-for-dollar tax credit for affordable housing investments. The LIHTC is designed to subsidize either 30% or 70% of the low-income unit costs in a project. The 30% subsidy, which is known as 4% tax credit, covers new construction that uses additional subsidies or the acquisition cost of existing buildings. Six CHBA properties were developed with the 4% tax credit. The 70% subsidy, or 9 %t tax credit, supports new construction without any additional federal subsidies. Three CHBA properties were developed with the 9% tax credit. To be awarded LIHTC equity, CHBA underwent a competitive and extensive application process, and to maintain it, CHBA oversees the carryover allocation, cost certifications and submission of numerous compliance forms on an annual basis.
California Debt Limit Allocation Committee (CDLAC)
Over 66% of the CHBA properties have been awarded by CDLAC tax-exempt private activity bonds.
Affordable Housing Program (AHP) Grant
In June2014, the Federal Loan Home Bank (FHLB) of San Francisco, awarded $590,000 to CHBA property, Hayward Senior Housing. The grant will be used for construction financing. AHP grants are awarded through a competitive application process to Bank members working to create rental or home ownership opportunities for lower-income households. In the 2014 funding competition, the Bank awarded $49.4 million in AHP grants to 76 projects in nine states.