YORK – “In 2016, the communities of York County partnered with the county and York County Development Corporation (YCDC) to complete an updated county-wide housing study,” says Lisa Hurley, executive director of the YCDC.
“The study showed York County housing needs 588 housing units by 2025, with half or 294 units needing to be rental units. Armed with this study, along with the projected need per income group, YCDC has been working on several projects with partners to expand housing to meet business growth and workforce needs.
“YCDC is pleased to announce Prairie Fire Development Group will build Vistas at Meadow Grove, consisting of 24 duplexes (48 rental units), a clubhouse and playground equipment on East 19th Street in York,” Hurley said further.
“This income-restricted development will be an estimated $8.2 million in total development with $6.1 million going towards construction in York County. The project is receiving $599,349 in Low-Income Housing Tax Credits through the Nebraska Investment Finance Authority (NIFA). The developers do not plan on pursuing Tax Increment Financing (TIF) on this project.”
The LIHTC program is one of the most successful housing development programs over the last 35 years, Hurley says. The public/private partnership agreement was developed through Section 42 of the IRS tax code and puts the burden of development of affordable units on the private sector. The intent of the program is to provide high quality attainable housing for those who earn a modest wage.
Applicants must prove their source of income as well as pass a full criminal background verification. The sale of tax credits allows the developers to underwrite the rents at a lower rate allowing people in the community more disposable income to spend on food, clothing, necessities and extras that would otherwise go towards rent or mortgages.
Federal Low-Income Housing Tax Credits (LIHTC) is a dollar-for-dollar credit against the federal and state income tax liability of the owner (developer or investor) of an affordable housing development.
The developer will syndicate the tax credits through investment banks who sell the credits to private corporations or investment funds. LIHTCs that are allocated to a development are claimed in equal amounts for a 10-year period on the federal level and six years at the state level.
The rental property generating the LIHTC must remain in compliance with the strict program guidelines and rent restriction requirements for a period of not less than 45 years from the first taxable year of the LIHTC credit period.
This project is in partnership with the York Housing Authority.
“Prairie Fire Development Group is known for developing innovative projects in urban and rural communities including new construction and historic renovation existing structures,” Hurley explained. “They are also the general contractor of their own developments which allows them to have better control over the physical development process. Prairie Fire has successfully developed and built over 400 units in the past six years in Kansas and Missouri. They will work with a third-party property management company that specializes in the complex compliance criteria of LIHTC developments.