LISC and NEF cite the vital need for tax credits for community development

Three tax credit programs that have been vital for affordable housing and community development are on the chopping block in the new budget passed by the U.S. House of Representatives. LISC's Andriana Abariotes, Executive Director in the Twin Cities, comments that these credits value in development projects. Joe Hagan of LISC affiliate, The National Equity Fund, suggest cutbacks could hinder development.

U.S. budget blueprint could shake housing finance

5 Apr 2012 - Mark Anderson, Finance & Commerce

Excerpt:

Developers in Minnesota and around the country are watching closely to see if Congress closes the nation’s budget deficit and delivers tax cuts by ending subsidies they have used to build housing and workplaces.

The U.S. House of Representatives adopted a budget last week that reduced the president’s earlier spending plan by another $5.3 trillion — and they promised they would cut more expenses.

Some of the expenses that could end up on the chopping block include three tax credit programs popular in Minnesota: the Low Income Housing Tax credits, New Markets Tax Credits and Historic Preservation Tax Credits.

The programs are used by nonprofit and for-profit developers to attract private equity to support affordable and commercial redevelopments in projects like the Ryan Cos.’ 2006 transformation of the former Sears campus on Lake Street in Minneapolis into the Midtown Exchange. Continued[+]...

> Read the full Finance & Commerce article.

> Visit the National Equity Fund website.

> Visit the Twin Cities LISC website.

Article Type: News