DSHA awards Low-Income Housing Tax Credits to three development projects
Delaware State Housing Authority awards three development projects with preliminary Low-Income Housing Tax Credit allocation.
The development projects will receive $3 million in 10-year federal Low-Income Housing Tax Credits.
Laurie Stovall is the director of public relations with the Delaware State Housing Authority. She explains how the tax credits work for the developers.
"So what happens is once the project is complete the developer can claim the tax credit on their annual taxes for over 10 years, and that is how they get the money for the project," said Stovall.
The buildings financed with the credits must remain affordable and in compliance with other policies for at least 30 years. DSHA monitors those developments.
The credits allow developers to build and restore affordable rental housing. They were created in 1986 to encourage private and public investment to preserve and construct affordable rentals nationwide.
"Three projects received the preliminary tax credit allocation. The first being Chapel Branch Apartments in Sussex County, specifically Lewes, Cheer Gateway East in Georgetown of Sussex County, and then George Reed Village in New Castle County," said Stovall.
Stovall notes in total there will be over 150 affordable housing units created within these three projects.