(INDIANAPOLIS) - Lt. Governor Sue Ellspermann announced Thursday that the state is awarding more than $12 million in rental housing tax credits to fifteen multi-family housing developments throughout the Hoosier state.
Project activities include new construction, rehabilitation, adaptive reuse (conversion of existing structures), and the preservation of historic buildings funded through the Internal Revenue Service Section 42 Rental Housing Tax Credit (RHTC) program.
The Indiana Housing and Community Development Authority (IHCDA) administers and manages the federal credits, which provide incentives for private developers to further the affordable housing choices available throughout Indiana. The 2014 RHTC allocation totaling $12.1 million will fund nearly 850 housing units and could leverage up to $109 million in private development capital.
Lt. Governor Ellspermann, who chairs the Indiana Housing and Community Development Authority (IHCDA), noted. "The rental tax credit program is an effective way to leverage private investment to provide affordable housing in communities throughout Indiana. The projects approved today demonstrate how the program can be used to rehab existing apartments, convert abandoned commercial structures to apartments or fund new construction. Many of these projects also support larger community development and neighborhood stabilization efforts."
In November of 2013, IHCDA received forty-four RHTC applications requesting more than $36.8 million in tax credits and over $15 million in supplementary IHCDA funding. A total of fifteen developments were approved to receive the tax credits and eleven of the selected developments will receive $5.25 million in additional IHCDA financing.
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