Coleman Talley LLP’s Jacksonville Office closed a Florida affordable housing development with two firsts in Florida. The 80-unit Low-Income Housing Tax Credit (LIHTC) community in Dade City, Florida was the first LIHTC development to be approved for income averaging and the first HUD/FHA LIHTC Pilot Program to close in the State of Florida (and one of the first in the country). The community was developed by Arbour Valley Communities.
The 40-year 221(d)(4) New Construction Loan for the development of Arbours at Hester Lake is among the first to use the expanded LIHTC Pilot Program. The loan closed just 60 days from submission and 34 days from Firm Commitment. The hard work of Arbour Valley Communities, Merchants Capital, Florida Housing Finance Corporation, as well as the HUD staff in Atlanta, Jacksonville and rest of Southeast region along with many other parties made this possible. Coleman Talley and partner, Greg Clark, are honored to have been a part of these new programs in the State of Florida.
Income Averaging – Income Averaging was created under the Consolidated Appropriations Act of 2018 and allows LIHTC owners to elect to serve households with incomes of up to 80% of area median income (AMI) and have these household qualify as LIHTC units, so long as the average income/rent limit in the project remains at 60% or less of AMI. Owners who elect Income Averaging must also commit to at least 40% of the units in the one level of no more than 60% of AMI and the rents for these units must be equal to 30% of the qualifying income level. Like most other aspects in the LIHTC world, the details are more complicated than they appear on the surface and participants should contact a knowledgeable professional before making decisions.
HUD/FHA LIHTC Pilot Program – The U.S. Department of Housing and Urban Development (HUD) revised the program earlier this year to include new construction and substantial rehabilitation projects using Section 221(d)(4) and Section 220 loans. Through the Pilot, the borrower is able to close the loan much more quickly. Instead of waiting up to 150 days to close, this nimble product speeds up affordable financing by reducing the processing time for LIHTC deals.