Hawaii Awarded $9.8 Million in Stimulus Funds to Assist Affordable Housing Programs

HONOLULU, HI – June 30, 2009 – (RealEstateRama) — Senate Appropriations Chairman Daniel K. Inouye and Senator Daniel K. Akaka announced today the State will receive more than $9.8 million from the U.S. Department of Housing and Urban Development (HUD) to boost affordable housing programs that have been affected by the economic recession.

The funding is in conjunction with the American Recovery and Reinvestment Plan under HUD’s new Tax Credit Assistance Program (TCAP).  This program allows state housing finance agencies to continue funding affordable renting housing projects in while construction jobs will be saved and created.

“Too many working families cannot access affordable housing in Hawaii,” said Chairman Inouye and Senator Akaka.   “These resources will encourage the development of affordable rental units.”

The TCAP will provide grand funding for capital investment in Low Income Housing Tax Credit (LIHTC) projects through a formula-based allocation to Hawaii housing credit allocation agencies.  The agencies will distribute these funds competitively and according to their qualified allocation plan.

Projects awarded low incoming housing tax credits in fiscal years 2007, 2008, or 2009 are eligible for funding, but housing credit agencies must give priority to projects that are expected to be completed by February 2012.  Seventy-five percent of TCAP funds must be committed by February 2012.  Seventy-five percent of TCAP funds must be committed by February 2010, 75 percent must be expended by February 2011, and 100 percent of the funds must be expended by February 2012.

More information about HUD and its programs is available at www.hud.gov