Jul
25

State Looks At Tax Credit for Apartments

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July 25, 2008

By Angelia Davis – Greenville News

The S.C. State Housing Finance and Development Authority will decide next month whether to award tax credits for eight multi-family developments proposed for the Upstate.

The developments are among 50 projects around the state being considered for the 2008 low-income housing income tax credit program.

Nationwide, projects such as those considered annually by the South Carolina authority are being canceled by developers because of a lack of equity. Some of the largest players, including Fannie Mae, Freddie Mac and Bank of America, scaled back their participation in the federal government’s largest affordable housing tax-credit program.

Laura Nicholson, a spokeswoman for the South Carolina authority, said 82 Tier I applications were received for the program this year. Of those applications, nine were eliminated by the authority for either failing mandatory market study criteria or because the market analyst determined that there was no market for the proposed development.

She said the authority received 50 Tier II applications, “therefore, 23 developers chose not to submit a Tier II application of their own choosing.”

In June, the Greenville County Council denied a request by tax-credit applicant Foresite Properties LLC to rezone properties on Piney Mountain Road for a 72-unit apartment unit for senior adults.

Stan Palma of Forsite said the company is now looking for another site in Greenville for the project.

The low-income housing tax-credit program was created in 1986 and has financed the construction of more than one million below-market-rate apartments.

The program is designed to boost construction of below-market-rent apartments.

LINK TO ARTICLE HERE:

http://www.greenvilleonline.com/apps/pbcs.dll/article?AID=/20080725/BUSINESS/807250322/1001/NEWS01

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