Tribal Tax Credit Projects Receive Additional $1.12 Million in AHP Funds

The Federal Home Loan Banks of Des Moines and Topeka awarded additional funding to three (3) tribal projects across the country through the Affordable Housing Program (AHP). Housing Authorities will use the extra subsidy to reduce or eliminate the need for any tribal funding in the project.

The Red Lake Housing Finance Corporation in Minnesota received $319,827 from Des Moines for their 20 unit new construction project (Redby Family Rental Project I).

The Fort Berthold Housing Authority in North Dakota recevied $350,000 from Des Moines for their 52 unit acquisition/rehabilitation project (Mandan Homes I).

The Wichita Housing Authority in Oklahoma received $450,000 from Topeka for their 40 unit new construction project (Iscani Subdivision to the City of Anadarko Phase II).

Travois provided application consulting services on each of these projects, both for the inital allocation of LIHTCs and the AHP funds.

A TRAVOIS

is a frame slung between trailing poles and pulled by a dog or horse, formerly used by Plains Indians as a conveyance for goods and belongings.

A. Rafton Canning / Bibliothèque et Archives Canada / PA-029769

The Low Income Housing Tax Credit Program and the New Markets Tax Credit Program provide capital from private investors to help you leverage your precious NAHASDA funds and realize your overall economic development goals.

If you plan to build or rehabilitate housing units, the tax credit program can provide financing for four times as many homes as NAHASDA funds alone. For example, a tribe can build 10 new three- or four-bedroom houses for about $1.2 million using NAHASDA funds. Under the tax credit program, you could build 40 units using the same amount of NAHASDA funds. If your tribe is in a Qualified Census Tract (QCT), and most tribes are, you could build 60 or more units with the tax credit program for the same $1.2 million in NAHASDA funds.

If you, or entrepreneurs in your community, plan to start businesses or undertake economic development projects, the New Markets Tax Credit program can provide 25 to 30 percent of the funds you need. The New Markets Tax Credit leverages financing with greatly decreased interest rates and significantly more flexible terms than are available in the current market. It can be used to finance the construction, expansion or operation of facilities for commercial, industrial, health care or community development uses.