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Jefferson City, MO –Missouri State Treasurer Scott Fitzpatrick today announced that the Missouri Housing Development Commission (MHDC) Accelerated Redemption Study Committee will recommend accelerated redemption be made available for up to 50% of state low-income housing tax credits, an increase from 20% of total projects in the pilot program. The Study Committee was formed in 2020 to evaluate the impact of accelerated redemption on pricing for low-income housing tax credits (LIHTC).

In their report, the Study Committee found accelerated redemption increased the pricing of state LIHTC over $0.10 per tax credit dollar from the 2017 standard pricing, representing an increase of 18%. This increase means up to 86 additional units of low-income housing could be built with no increase in spending.

“The accelerated redemption pilot program led to a significant increase in pricing for low-income housing tax credits meaning your tax dollars are being spent more efficiently and more low-income housing can be built as a result. When the tax credits were halted in 2017, I didn’t want to see them reinstated without significant reforms and increased transparency. Missourians can see both in the scoring rubric now used to evaluate applications and the success of the accelerated redemption program,” Treasurer Fitzpatrick said. “My commitment as Treasurer to protecting your tax dollars is one I take seriously. Fighting to improve the efficiency and transparency of the state LIHTC program is a reflection of that commitment.”

In 2020, at the Treasurer’s request, the MHDC board implemented an Accelerated Redemption Pilot Program for state LIHTC. This program was designed to increase the efficiency of the LIHTC program by improving pricing for state LIHTC credits, meaning more low-income housing would be built per state tax credit dollar. The Pilot Program was limited to 20% of the total approved developments.

The recommendation of the Committee will be considered by the full MHDC board at a future board meeting.

Treasurer Fitzpatrick chaired the Study Committee. Other members included Lt. Governor Mike Kehoe and Commissioners Mark Elliff, Garrick Hamilton, Tracey Lewis, and Rick McDowell.

MHDC was created by the General Assembly in 1969 and administers and provides financing for the construction of affordable housing in the state. 

A full copy of the Missouri Accelerated Redemption Study Committee Report can be found here.

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