TAX CREDITS CREATE AFFORDABLE RENTAL HOUSING
By Steve Wright
The building had not fulfilled its affordable housing tax credit requirements of 15 years as low income housing before being allowed to charge market rate. If affordable rates had not continued, the owner would have faced procedures to recapture the Low Income Housing Tax Credits he had used to finance the project.
Friedman, who has experience in affordable housing, historic renovation and traditional development, teamed with Dublin Capital to secure: housing assistance credits through a nonprofit corporation, tax exempt bonds, city lien forgiveness plus federal and state LIHTC. The project was structured to also benefit from federal historic tax credits plus state of Missouri historic tax credits.
Friedman and Dublin contracted for a market study and appraisal and assembled a development team including a general contractor, architect and local legal counsel. Friedman and Dublin also assembled a group to provide the debt and equity needed to purchase the property plus additional land for adequate parking.
“Since the Winston Churchill House had Section 8 tenants, the development chose to find alternative housing for the residents during the gut rehab and pay the difference in rent. Friedman Group, working with a local project manager, assisted in relocating the qualified tenants,” explained Friedman, who also maintained a strong community relations campaign with city alderman and mayor’s office, a Congressman’s office, the police department, community religious groups and neighborhood associations.
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