NY awarded $253M through housing tax credit program - The Business Review (Albany):

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is one of the companies that will benefit from an infusiojn of federal stimulus moneg into a tax credit program that subsidizes construction ofaffordabler housing. U.S. Housing and Urbann Development Secretary Shaun Donovan announced todathat $252.7 million has been awarded to New York throug h the federal government’s new $2.25 billio n Tax Credit Assistance Program. The money will enable the state to resume funding the construction or renovation of affordable rentalhousint units. Omni Housing is among the companies that rely on the sale of low income housing tax credits to investors to help payconstructionm costs.
The demand for tax credits in the state and nationwide has erodeed because of thecredit crisis. Before the creditt freeze hit, banks and othedr lenders such as and used the credits to reduce their federatax liability. Now, with bank profits much there is less need for thetax credits. “The market is in said Duncan Barrett, chief operating officer at Omni a divisionof Inc. Construction and renovation projectes have been jeopardized as the valuwe of the tax credits As manyas 1,000 projectes containing nearly 15,000 housing unitas are on hold across the according to HUD.
For instance, Omni Housing has received two writtenm offers to purchase tax credits foran $11 million renovation of 100 garden-styler public housing apartments in Watervliet. The offers are 70 centsx or 72 cents forevery $1 of tax The low price would creatde a gap in funding, making the projectt unworkable. Omni is seeking $2.4 million through the Tax Creditt Assistance Program to fillthe gap, Barrett “What the TCAP funds are doinfg is plugging the hole that has been created by the lack of tax crediyt investors and the falling prices for those investors,” Barretft said. HUD estimates the new program will providr affordable housingto 35,000 households nationwide.
Omni has redevelopedd 1,170 affordable housing units in the Albany region over the past 10 mostly for municipalhousing authorities. Omni manages some of thosse units and provides property managemenr supportto others.