The Delaware State Housing Authority (DSHA) announced its preliminary project award rankings for the 2023 Low-Income Housing Tax Credit (LIHTC) allocation last week.
The LIHTC was created in 1986 to encourage private/public investment to preserve and construct affordable rental housing nationwide. Alone and combined with tax-exempt private activity bonds, a release stated that the LIHTC has been the most productive source of affordable housing financing in the nation’s history.
This year, three development projects were awarded $3 million in 10-year federal LIHTCs. Recipients were selected based on criteria outlined in DSHA’s Qualified Allocation Plan, which include rent price, location, accessibility, and more. All projects must meet program requirements by the end of the year to receive a formal reservation of tax credit investments.
| Project Name | Project Type | Project County | # of Units |
| Chapel Branch Apartments | New Construction – Family | Sussex | 35 LIHTC7 Market |
| Cheer Gateway East | New Construction – Senior | Sussex | 59 LIHTC |
| George Read Village | Preservation – Family/Senior | New Castle | 72 LIHTC |
Developers claim tax credits over ten years, which allows them to balance the construction or rehabilitation costs incurred during the rental housing development. All buildings financed with the LIHTC must remain affordable and in compliance with other program policies for a minimum of 30 years.
DSHA receives an annual tax credit amount and awards credits annually through a competitive process. The equity raised through the tax credit investment allows developers to attract the additional financing needed to create or restore low-income rental housing.
“DSHA is consistently and aggressively adding new affordable rental units to Delaware’s housing stock,” said Eugene Young, Jr., Director of DSHA. “The development of these communities will transform the lives of families and seniors and bring us one step closer to solving the housing crisis in our state.”
DSHA has administered LIHTC since 1987, adding more than 10,000 affordable units to the state’s housing inventory. Further information is available at http://destatehousing.com/Developers/dv_lihtc.php.
