We found this report on KnowledgePlex. State housing financing agency staff convened by the National Housing Trust during the National Council of State Housing Agencies spring training in Tucson, Arizona, discussed strategies they are using to keep viable projects moving forward despite falling tax credit prices. According to NHT, housing finance agencies have adopted five basic approaches to the market volatility: lowering minimum tax credit pricing, adding subsidies to transactions, modifying already adopted qualified allocation plans, providing additional credits to particular transactions and allowing developers to hike rents where the rent increases maintain agreed upon initial affordability limits. For a summary of HFA responses discussed at the roundtable, click here.
New Jersey’s strategies include:
1. Increase in basis limit,
2. Increase in maximum per project limits,
3. More flexible hardship clause mechanism (& non-competitive applications for less than $100,000)
4. Decrease equity pricing
Also held 2 meetings within the last 3 months with a group of core syndicators in an effort to stay up to date on current market conditions.
Tags: HMFA, KnowledgePlex, Low-Income-Housing-Tax-Credits, Supportive Housing
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