MHDC announces housing development funds

The Missouri Housing Development Commission has announced the availability of funds for rehabilitation or construction of rental housing units for low- and moderate-income families in Missouri.

Interested developers, community agencies and other sponsors may apply for funding that includes $7 million in MHDC funds, $10.18 million in federal HOME loans or grants, and $2.2 million in federal HOME Community Housing Development Organization funds.

MHDC will also allocate approximately $6.75 million of federal and $6.75 million of state Low Income Housing Tax Credits.

MHDC administers rental housing production programs, including the federal and state low-income housing tax credits.

Tax credits are a reduction in tax liability, allocated to a qualified development, which are generally sold to create equity.

Annually, MHDC accepts applications to fund rehabilitation and construction of rental housing developments. Last year MHDC received 117 rental production proposals and approved funding for 42 of them.

Applications must be submitted to MHDC by 5 p.m., Nov. 2, 1999.

Once received, each proposal will be underwritten to assess the details, ensuring the development is a good risk. This requires reviewing the land, construction costs, equity, funding source and operational details.

It also includes evaluating creditworthiness, the ability of the developer or organization to proceed with the work, and the appropriate rents for the units.

During this process, elected officials where developments have been proposed will be provided an opportunity to comment on the proposals. MHDC staff will make personal visits to all the sites, and regional public hearings will be held to allow Missouri citizens to provide input to the commission.

The proposals recommended to the commission for approval will represent a geographic distribution across the state, concentrating on areas of highest need