Congratulations are in order for four Travois clients who recently received a combined $865,000 allocation of Affordable Housing Program (AHP) funds from the Federal Home Loan Bank. The funds received will be used to leverage the tribal housing authority’s financial contributions to Low Income Housing Tax Credit (LIHTC) projects.
These notices of AHP awards come at an important time for each of our clients. As construction prices in rural areas continue to rise for tribes, it is vital for tribal developers to make use of as many leveraging resources as possible in order to ensure the financial feasibility of construction and rehabilitation on the reservation. The unfortunate decline in availability of soft funding sources, combined with higher costs, has increased competition for such funds. When at all possible, Travois recommends using the Federal Home Loan Bank’s AHP program as a leveraging tool to pair with LIHTC projects given the many program similarities.
From the Federal Home Loan Bank of Des Moines, the Standing Rock Housing Authority (SRHA) received $250,000. These funds will be used to help finance the construction of 30 new homes on the Standing Rock Reservation in North Dakota. The project, Standing Rock Homes 18, is SRHA’s 18th LIHTC project and will target households on the waiting list at the 30 percent and 60 percent Area Median Income (AMI) levels. Funding for the project will include a combination of AHP funds, SRHA funds and equity generated from the sale of tax credits to an investor. Click here for the full listing of AHP awards from the FHLB of Des Moines.
From the Federal Home Loan Bank of Boston, the Houlton Band of Maliseet Indians Tribal Housing Authority received $250,000 to help finance the rehabilitation of 28 homes on the Maliseet Reservation in Houlton, Maine. This project will be funded through an allocation of LIHTC from Maine Housing and funds contributed by the Maliseet Housing Authority. This is Maliseet’s first LIHTC project and will serve households at the 50 percent and 60 percent AMI levels. Click here for the full listing of AHP awards from the FHLB of Boston.
From the Federal Home Loan Bank of Seattle, the Lower Elwha Housing Authority (LEHA) of Washington and the Fort Peck Housing Authority (FPHA) of Montana received allocations of AHP funds. LEHA received $150,000 to be used toward its 25-unit new construction project, Lower Elwha Homes II. FPHA received $215,000 to for its 24-unit new construction project, Fort Peck Homes II. Both housing authorities are well underway with the construction of the new homes after closing their LIHTC projects in 2012 with equity investors (Lower Elwha with Raymond James Tax Credit Funds and Fort Peck with RBC Capital Markets). Click here for the full listing of AHP awards from the FHLB of Seattle.