Two tribal projects recently received awards of Low Income Housing Tax Credits (LIHTCs) from the Arizona Department of Housing (ADOH): The Pascua Yaqui Tribe of Tucson, Ariz. was awarded $633,172 for its first LIHTC project and Yavapai-Apache Nation Tribal Housing (YANTH) of Camp Verde, Ariz., was awarded $717,908 for its fourth LIHTC project.
When the tax credits are sold to investors, about $4.1 million in equity is expected to be raised for the Pascua Yaqui project and about $4.6 million will go toward the Yavapai-Apache project.
Travois, Inc. provided consulting services for the two applications and has worked with the Yavapai-Apache Nation on its three previous projects.
“All over the country, competition for tax credits is fierce, and we’re proud to have played a part in these two successes,” said David Bland, chairman of Travois. “We can’t wait to see the results of Pascua Yaqui’s first project and Yavapai’s fourth project: new and renovated homes for families who need them.”
At the time of application, the Pascua Yaqui Tribe had a waiting list of 652 households in need of affordable homes. The tribe will use the proceeds from the sale of the tax credits to build 20 new homes and rehabilitate 20 others on two sites in Tucson.
“The Pascua Yaqui Tribe is pleased to receive the award of tax credits,” said Rolando Jaimez, contracting officer of the Pascua Yaqui Tribe. “With the growing waiting list for affordable housing, this award will provide an opportunity to help our tribal members meet this need.”
The homes will be a combination of three-bedroom, four-bedroom and five-bedroom units and will include the following amenities: range, refrigerator, disposal, washer and dryer with hook-ups, air conditioner, carport and storage area. Of the 40 units, 12 units will serve households at or below 40 percent Area Median Income (AMI), 16 units will serve those at or below 50 percent AMI and 12 units will serve those at or below 60 AMI.
The homes will use rocks and ornamental plantings of native and drought-tolerant plants to conserve water and minimize maintenance requirements. Green building features will include adhesives and paints with low volatile organic compounds (VOCs), dual flush toilets and recycled concrete. An office and maintenance facility will also be constructed at the 20 new homes site, which is part of a larger 43-unit planned development.
Yavapai-Apache Nation Tribal Housing will use its LIHTC award to build 36 new units, to be located in the same Tunlii neighborhood as the homes that were developed and built through the nation’s third LIHTC project. The homes will be a mix of triplexes, duplexes and three- and four-bedroom single-family homes.
“The award will help alleviate housing needs for several of the families on our tax credit waiting list,” said Rick Preston, executive director of YANTH. “We also plan to introduce more energy efficient homes to community members, which will cut down operating costs of the homes. This should not only let the individuals enjoy a new home, but a home that will not cost them a substantial amount of money to manage.”
Eleven homes will serve families with incomes at or below 40 percent AMI, 15 homes will serve those at or below 50 percent AMI and nine units with serve those at or below 60 percent AMI. One home will be reserved for a resident manager. Amenities for the homes will include ranges, refrigerators, dishwashers, garbage disposals, kitchen exhaust fans, air conditioners and washer and dryers.
YANTH will strive to create “net zero” homes, which means they will produce as much energy as they use. Planned green components include a solar photovoltaic system, spray foam insulation, stamped concrete floors, recycled concrete, dual flush toilets, low VOC products, a drip irrigation system and cool roofs. In addition, two playgrounds will be constructed in the subdivision.
To view a list of award recipients, click here.
About the Low Income Housing Tax Credit program
The Low Income Housing Tax Credit program was developed by Congress is 1986, and its regulations are provided for in Section 42 of the Internal Revenue Code. It was created to encourage private investment in the construction or rehabilitation of housing for low-income families. The IRS makes tax credits available to each state, and the states are responsible for developing Qualified Allocation Plans (QAPs) and determining which projects receive awards. Investors are interested in buying tax credits to reduce the amount of taxes they owe the federal government. Tax credits offset taxes on a dollar-for-dollar basis for a 10-year period. Tribes can raise the equity they need for building projects through the LIHTC program, which lowers the amount a tribe will need to contribute to the project. It does not need to repay this equity but must follow all regulations for the 15-year compliance period.
About Travois
Travois, Inc. is the leading housing and economic development consulting firm in Indian Country. Since 1995, Travois has brought $350 million in private equity capital to Indian Country, which has helped build or rehabilitate more than 3,500 homes through the Low Income Housing Tax Credit (LIHTC) program, and has raised more than $40 million to support tribal commercial ventures through the New Markets Tax Credit (NMTC) program. Travois New Markets received an $80 million allocation of New Markets Tax Credits in 2009, which it is working to invest in qualified projects. The Travois family of companies offers housing and economic development assistance, compliance support, design services and comprehensive training to the nation’s American Indian population with clients from Alaska to Maine. For more information about Travois, please visit www.travois.com.